Answer Happy

Mandelbaum Company is preparing its master budget for 2021. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. 1 2 3 5 6 7 8 9 10 11 17 18 19 Sales: Sales for the year are expected to total 1,700,000 units. Quarterly sales are 21%, 25%, 26%, and 28%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2022 are expected to be 10% higher than the budgeted sales for the first quarter of 2021. Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. 12 Expected Unit Sales 13 Unit Selling Price 14 Total 15 16 20 21 Instructions: Prepare the sales and production budgets, by quarters, for 2021 (complete the highlighted cells). YOU MUST USE EXCEL FORMULAS AND FEEDS FOR ALL CALCULATIONS. MANUAL ENTRIES WILL NOT EARN CREDIT. 22 Expected Unit Sales 23 Add: Desired Ending Inventory 24 Total Required Units 25 Less: Beginning FG Inventory 26 Purchases 27 28 29 Mandelbaum Company Sales Budget For the Year Ending December 31, 2021 2 Mandelbaum Company Production Budget For the Year Ending December 31, 2021 2 Quarter Quarter 3 3 Year Year
1. Follow instructions in the Excel template to complete the budget activity. 2. Respond to the following items related to budgets: a. Explain the difference between a Static budget and a Flexible budget. b. Under what circumstances is a static budget more useful? c. Under what circumstances is a flexible budget more useful? 3. Describe and explain each of the elements of a master budget and specifically explain how these elements interrelate with each other.