13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin
Q: 1. Does the Cost of Gost Solds increase or decrease when closing a favorable variance? Does income…
A: variance refers to the difference between an actual outcome and a planned or budgeted outcome. It is…
Q: ACCT 361:Ethical, Fraud, and Legal Issues for Accountants: Evaluate investor fraud through a case…
A: The Madoff Ponzi Scheme is one of the most infamous cases of investor fraud in history. Bernard…
Q: The City of Amarillo is authorized to issue $3,600,000, 5 percent regular serial bonds in 2023 for…
A: Note 1 - Budget Transaction Amount = Principal Payment + Interest Payment…
Q: Required Information Use the following information for the Exercises below. (Algo) [The following…
A: Answer:- Variance:- Variance is the discrepancy between the actual data and the standard data. When…
Q: Posters.com is a small Internet retailer of high-quality posters. The company has $740,000 in…
A: Return on Investment = Net operating income / Average operating assets Computation of the net…
Q: Mountain High Ice Cream Company transferred $64,000 of accounts receivable to the Prudential Bank.…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The variance is the difference between the actual data and standard cost of production. The direct…
Q: f reconciliation as a control is properly implemented at Company, Inc. it would detect all of the…
A: Reconciliation is a process of comparing two sets of records to ensure that they are in agreement…
Q: Swell Computers manufactures desktop and laptop computers. The components of the financial…
A: Materiality is a concept in accounting and auditing that refers to the importance of an item or…
Q: Annette's Accessories had the following stock issued and outstanding at January 1, 2019. 150,000…
A: Dividend is the amount which is paid to the shareholders of the entity in the form of return. It is…
Q: The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: The common shares of Hoover Inc. are currently selling at $143 per share. The directors want to…
A: a. Prepare journal entry to record the board votes a 2-for-1 stock split. Particular debit credit…
Q: Which of the following is an account used in applying the Sales Warranty Approach, but not the…
A: The Sales Warranty Approach is an accounting method used to account for warranties that a company…
Q: Which of the following statements is false?
A: The predetermined overhead rate (POHR) is calculated using estimated manufacturing overhead costs…
Q: How to calculate preferred dividends?
A: Preferred dividends are the fixed dividends paid to the holders of preferred stock, a type of stock…
Q: Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Required information Problem 7-42 (LO 7-2) (Algo) [The following information applies to the…
A: You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital…
Q: TOM, UMI, and VIC decided to liquidate their partnership on May 31, 20x7. On this date, their…
A: The partnership comes into existence when two or persons agree to do the business and further share…
Q: The following information is available for Grouper Corporation for 2024 (its first year of…
A: Solution: Deferred tax is an item on the balance sheet of the entity, for excess payments, advance…
Q: Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or…
A: INTRODUCTION: Material variances involve two factors: the number of materials used to generate one…
Q: Take-a-Break Travel Company offers spring break travel packages to college students. Two of its…
A: Profit margin refers to the term which is defined as the difference among the aggregate cost for…
Q: Use the following information below to complete the inventory calculations on the FIFO, LIFO, and…
A: Under FIFO method inventory that comes first is sold first and the most recent inventories is…
Q: On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year…
A: Journal entries- Lessee (Maywood Hydraulics) Date General Journal Debit Credit Jan 1, 2024…
Q: Mario a self-employed baseball coach. During 2020, his net earnings from self- employment were…
A: As a self-employed individual, Mario is responsible for paying both the employee and employer…
Q: Crane Corporation has one temporary difference at the end of 2025 that will reverse and cause…
A: To compute taxable income and income taxes payable for 2025, we need to calculate the amount of…
Q: Jim may claim a bad-debt expense deduction on his 2022 taxes for the $2,500 of uncollectible…
A: The correct option is: Jim may claim a bad-debt expense deduction on his 2022 taxes for the $2,500…
Q: AAA and BBB formed a joint venture called CCC on January 1, 2022. Presented below are some relevant…
A: The book value of the plant and equipment contributed by AAA is not given directly in the…
Q: Thank you. This was the calculation I obtained when working the problem for basic EPS. Can you…
A: Diluted EPS used to measure the performance or profitability of the firm it includes convertible…
Q: On January 1, 2021, Ravetch Corporation's projected benefit obligation was $45 million. During 2021,…
A: Projected benefit obligation is the actuarial measurement of the amount that the company needs today…
Q: 1. A machine has a cost of $17,100, an estimated residual value of $4,020, and an estimated service…
A: The entire quantity of depreciation and amortization that has been incurred in relation to a…
Q: At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: Watko Entertainment Systems (WES) buys audio and video components for assembling home entertainment…
A: The cost per unit formula involves the sum of fixed and variable costs, which is then divided by the…
Q: During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss…
A: If a company incurs any loss in a periodic year then as per the tax rate it is carried forward next…
Q: Current Attempt in Progress At December 31, 2025, Sarasota Corporation had a deferred tax liability…
A: Deferred tax liability is a listing on a company's balance sheet that records taxes that are owed…
Q: Required information [The following information applies to the questions displayed below.] During…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Synergy Company began 2023 with 21,000 units of Product X in its inventory that cost $7.90 per unit,…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Assessment Tool iFrame A cash budget, by quarters, is given below for a retail company (000…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: QUESTION : T&H Manufacturing Company produces and a single product. Its current sales are $500,000.…
A: The break-even sales are the sales where the business earns no profit or no loss during the period.…
Q: Required information [The following information applies to the questions displayed below.] Laker…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Lovell Equestrian Gear utilizes an activity based costing system for allocating overhead costs. The…
A: To calculate the total applied manufacturing overhead costs, we need to multiply the actual activity…
Q: Make the year-end entry to record uncollectible-account expense. (Record debits first, then credits.…
A: Given in the question: Accounts Receivable balance on December 31, 2021 = $91,000 Allowance for…
Q: The following information for the past year is available from Gas Company, a company that uses…
A: Managing fixed overhead costs is also an important factor in cost control and profitability. By…
Q: Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces…
A: Joint Cost :— It is the total cost incurred jointly in the manufacturing of two or more joint…
Q: How would I do this? You have been hired as the new controller for Acme Business Products. You…
A: Given You have been hired as the new controller for Acme Business Products. You discover that there…
Q: AIM Inc. showed the following equity account balances on the December 31, 2019, balance sheet:…
A: Shares that are repurchased and cancelled by the company are called as retired shares.
Q: of the fixed overhead cost incurred in PE a. Should LMTC Ltd accept or reject the offer from Kids…
A: Investment decisions involve the process of choosing how to allocate money or resources in order to…
Q: Topic Please research an annual comprehensive financial report of any local municipality of your…
A: A construction project carried out by a government agency or department with the intention of…
Q: On February 1, Wood Company purchased $2,550 of supplies on account and debited Supplies. At the end…
A: Adjusting entries are those that are made at the conclusion of the accounting period to properly…
Q: 35 The City of Sandwich purchased a swimming pool from a private operator as of April 1, 2020, for…
A: Based on the transactions provided, the following journal entries would be made: 1.To record the…
Q: Manufacturing overhead is the costs that can be traced directly to specific units produced.…
A: Manufacturing overheads are indirect costs. Indirect costs are those costs which cannot be easily…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs 1.24 per pound, determine the direct materials purchases budget for January.Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs 18 per hour, determine the direct labor cost budget for January.
- CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses arc S2,700 a month. Income tax payments of 63,000 arc due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2014. b. Prepare monthly estimates of the required financing or excess funds that is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 130 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale. 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKicks policy is that 20 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: 1. Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. 2. What if FlashKick decreased the ending inventory percentage to 15 percent of the next months production needs? What impact would that have on the direct materials purchases budgets prepared in Requirement 1? Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?
- Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Budgeted income statement and supporting budgets The, budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016: a. Estimated .sales for December: Bird house 3,200 units at 50 per unit Bird feeder 3,000 units at 70 per unit b. Estimated inventories at December 1: Direct materials: Finished products: Wood 200 ft Bird house....... 320 units at 27 per unit Plastic 240 lbs. Bird feeder....... 270 units at 40 per unit c. Desired inventories at December 31: Direct materials: Finished products: Wood 220 ft Bird house....... 290 units at 27 per unit Plastic 200 lbs. Bird feeder....... 250 units at 41 per unit d. Direct materials used in production: In manufacture of Bird House: In manufacture of Bird Feeder: Wood 0.80 ft. per unit of product Wood........... 1.20 ft per unit of product Plastic 050 lb. per unit of product Plastic........... 0.75 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood 7.00 per ft. Plastic................. 1.00 per lb. f. Direct labor requirements: Bird House: Fabrication Department 0.20 hr. at 16 per hr. Assembly Department 0.30 hr. at 12 per hr. Bird Feeder: Fabrication Department 0.40 hr. at 16 per hr. Assembly Department 0.35 hr. at 12 per hr. g. Estimated factory overhead costs for December. Indirect factory wages 75,000 Power and light 6,000 Depreciation of plant and equipment 23,000 Insurance and property tax 5,000 h. Estimated operating expenses for December: Sales salaries expense 70,000 Advertising expense 18,000 Office salaries expense 21,000 Depreciation expenseoffice equipment 600 Telephone expenseselling 550 Telephone expenseadministrative 250 Travel expenseselling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 i. Estimated other income and expense for December: Interest revenue 200 Interest expense 122 j. Estimated lax rate: 30% Instructions 1. Prepare a sales budget for December. 2. Prepare a production budget for December. 3. Prepare a direct materials purchases budget for December. 4. Prepare a direct labor cost budget for December. 5. Prepare a factory overhead cost budget for December. 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be 29,000 and work in process at the end of December is estimated to be 35,400. 7. Prepare a selling and administrative expenses budget for December. 8. Prepare a budgeted income statement for December.