Essay on Week 4 Assignment from Textbook

1283 WordsAug 9, 20156 Pages
Week 4 Assignment from Textbook: Chapter 23 & 24 Esther Tate ACC/400 July 26, 2015 Theresa Pekron Brief Exercise 23.6 – Elements of the Budget Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A: 1. Budgeted income statement a. Direct materials budget 2. Budgeted balance sheet b. Cost of goods sold budget 3. Cash flow budget c. Production budget 4. Cost of goods sold budget d. Payables budget 5. Production budget e. Sales budget 6. f. Budgeted income statement 1. Budgeted income statement – e. Sales budget 2. Budgeted balance sheet – d. Payables budget 3. Cash flow budget – a. Direct materials budget 4. Cost of goods sold budget – b. Cost…show more content…
Collections Table Jan Sales Feb Sales Mar Sales Apr Sales May Sales Total Collection Collections month of Mar 31 $45,000 $120,000 $300,000 $0 $0 $465,000 Collections month of Apr 30 $0 $60,000 $180,000 $350,000 $0 $590,000 Collections month of May 31 $0 $0 $90,000 $210,000 $400,000 $700,000 Cash Budget March April May Opening Cash Balance $500,000 $565,000 $755,000 Add Collections $465,000 $590,000 $700,000 Less Expenditures $400,000 $400,000 $400,000 Ending Cash Balance $565,000 $755,000 $1,055,000 Cash balance on March 31st $565,000 Cash balance on April 30th $755,000 Cash balance on May 31st $1,055,000 Exercise 24.2 – Relationships among Standard Costs, Actual Costs and Cost Variances The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows: Variances Standard Cost Unfavorable Favorable Direct Materials $85,000 Price Variance $5,000 Quantity Variance $3,000 Direct Labor $150,000 Rate variance $2,700 Efficiency variance $6,200 Manufacturing Overhead $300,000 Spending variance $4,000 Volume variance $5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead. Total Material Cost Variance + (Price variance - Quantity variance) = 85,000

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