By the information given attached, please draw up the Production Budget for January and February 2024.
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
By the information given attached, please draw up the Production Budget for January and February
2024.
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- Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry that Heller Company would make at the beginning of 2020 to record the cumulative effect of the change from LIFO to FIFO. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Inventory Write-Down The inventory records of Frost Company for the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the: a. allowance method b. direct method 2. Show the presentation of cost of goods sold and inventory of Frosts income statement and balance sheet for 2019 and 2020 under the: a. allowance method (assume the cost of goods sold prior to applying the lower of cost or net realizable value rule was 595,000 and 605,000 for 2019 and 2020, respectively) b. direct methodOlson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
- The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200The required production of a product manufactured by Ditto Manufacturers for 2023 is 38 000 units. The opening inventory on 01 January 2023 was 6 000 units and a closing inventory of 4 000 units is desired on 31 December 2023. What are the expected sales of the product for 2023? A. 40 000 units B. 48 000 units C. 28 000 units D. 36 000 unitsOyster Manufactures had an inventory of 30000 units of product B (at a production cost of R11 per unit) on 01 January 2023. An additional 600000 units are expected to be produced during 2023. The unit production cost of Product B is expected to be R12 per unit during 2023. An inventory of 45000 units is expected on 31 December 2023. The first in first out method of valuing inventories is used. Calculate the cost of sales for 2023
- The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?Use the information provided below to calculate the Cost of sales for 2023. INFORMATION Oyster Manufacturers had an inventory of 30 000 units of Product B (at a production cost of R11 per unit) on 01 January 2023. An additional 600 000 units are expected to be produced during 2023. The unit production cost of Product B is expected to be R12 per unit during 2023. An inventory of 45 000 units is expected on 31 December 2023. The first-in-first-out method of valuing inventories is used.Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:Historical cost : $1,000Replacement cost: $900Estimated Selling price: $ 1,050Estimated costs to complete and sell: $100Required: Write down the journal entry at end of 20181) Follow IFRS2) Follow U.S GAAP
- A company adopted dollar-value LIFO on January 1, 2020, when the inventory value was $365,000 and the cost index was 1.45. On December 31, 2020, the inventory was valued at year-end cost of $400,000 and the cost index was 1.50. The company would report a LIFO inventory of:Dollar-Value LIFO Acute Company manufactures a single product. On December 31, 2018, Acute adopted the dollar-value LIFO inventory method. It computes the inventory on that date using the dollar-value LIFO inventory method as $300,000. Inventory data for succeeding years are as follows: Year EndedDecember 31, Inventory at RespectiveYear-End Prices Relevant Price Index(Base Year 2018) 2019 $363,000 1.10 2020 420,000 1.20 2021 430,000 1.25 Required: Compute the inventory amounts at December 31, 2019, 2020, and 2021 using the dollar-value LIFO inventory method for each year. Do not round your intermediate calculations. If required, round your answers to the nearest dollar.Debra King Company was formed on December 1, 2019. The following information is available from King’s inventory records for Product BAP. Units Unit Cost January 1, 2020 (beginning inventory) 1,740 $ 8 Purchases: January 5, 2020 3,480 9 January 25, 2020 3,770 10 February 16, 2020 2,320 11 March 26, 2020 1,740 12 A physical inventory on March 31, 2020, shows 4,640 units on hand. Prepare schedule to compute the ending inventory at March 31, 2020, under FIFO inventory method. DEBRA KING COMPANYCOMPUTATION OF INVENTORY FOR PRODUCTBAP UNDER FIFO INVENTORY METHODMarch 31, 2020 Units Unit Cost Total Cost Beginning InventoryEnding InventoryPurchases January 5, 2020Purchases January 25, 2020Purchases February 16, 2020Purchases March 26, 2020 $ $ Beginning InventoryEnding InventoryPurchases January 5,…