Master Budget Solution Problem Managerial Accounting

							                                BUDGET PROJECT
                         Principles of Managerial Accounting

Project Developer:    David Carr
Office Location:      Pinnacle, Rm 1025
Office Phone:         223-8118
Email:                dcarr@austin.cc.tx.us

                                   Project Description
Pecos Canyon Winery (fictitious) is a small vineyard/winery located in the Big Bend area
of West Texas. The project consists of preparing a master budget for one quarter for the
winery’s bottling and distribution division.

                                   Project Objectives
The primary objective of the activity is to have students, working as teams, analyze a
realistic business problem (i.e. budgeting) and develop a viable solution. Secondarily,
the project presents opportunities for using computer technology in developing the
necessary budget schedules and illustrating the completed report.

                                   Project Instructions
Detailed instructions to follow in performing the activity are included in the assignment
handout given to the students. They can be summarized as follows:
    Analyze the facts presented concerning the division’s operation
    Prepare (using Microsoft Excel) detailed master budget schedules
    Prepare a proforma income statement and balance sheet
    Prepare in written form recommendations for the company to consider
       using in it’s future budget process and business operations
    Make a verbal presentation (using Microsoft PowerPoint slides for illustration)
       of the completed budget and associated recommendations

                                        SCANS
All three of the SCANS competencies selected to be specifically covered in managerial
accounting: organize information, use problem solving skills and apply technology are
included in this lab activity.

                                    For Instructors Only
A set of the completed budget schedules and financial statements are available for
grading the student solutions. Also, a template can be provided for loading on the
computer lab network to assist the students in developing the schedules and to serve as a
guide. It is recommended that two class days (1.25 hours each) and three lab sessions
(50 minutes each) be assigned for students to prepare the budget and make their
presentation. Due to the significant amount of work required to satisfactory complete the
project , it is recommended that it be assigned a maximum of 100 points which can be
allocated to each schedule and statement and the final presentation.