for March: Cost Formula Actual Fixed Variable cost/MH Utilities $16,600 $132,900 $ 0.15 2$ 20,820 $ 206,800 8,600 2$ Maintenance 2$ 3.60 Supplies Depreciation 2$ 0.40 2$ $67,800 69,500 $ 305,720 During March, the company produced 10,500 units. The company had originally planned to work 22,000 machi: hours during March to produce 11,000 units. 20 Calculate the total spending variances for March. 2$ 1,700 F 2$ 1,270 U A. B. 305,720 С. $ 200 U
Q: Company A has issued stock options to an employee that vest based on only continued service in insta...
A: The company has determined that the service period for purposes of attributing the expense to the pe...
Q: Use FIFO in perpetual inventory system to prepare the following based on transactions 1-4 Purchases ...
A: Please Step 2 for required information.
Q: The rent expense account in 2020 has debit balance of P74,400 composed of the following: (1) January...
A: Working notes : (1) Rent expenses for the period January 2020 to April 2020 = P16800 (2) Rent expen...
Q: If bonds with a face value of $124000 are converted into common stock when the carrying value of the...
A: Each of these transactions requires a diary entry. It's vital to remember that we're looking at the ...
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three invent...
A: Solution Concept FIFO method means the method of inventory in which the goods purchased first is sol...
Q: During 2021, its first year of operations, Pave Construction provides services on account of $156,00...
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized i...
Q: Explain in detail receivable float and the ways to avoid receivable float loss. Provide a hypothetic...
A: Float refers to the time gap in the receivables management.
Q: Given the following list of accounts with normal balances, what are the trial balance totals of the ...
A: Introduction: Trial balance is a strategy for ensuring the correctness of the debit and credit amoun...
Q: A short-term note payable: O Is a written promise to pay a specified amount on a definite future dat...
A: Short-term note payable is not a contingent and estimated liability because it has a definite amount...
Q: Problem 3. Cebu Music Emporium carries a wide variety of music promotion techniques - warranties and...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Sole proprietors may deduct on their individual income tax returns an amount equal to 100% of self- ...
A: Tax deduction is a reduction of income which comes under the scope of taxation. Tax deductions are a...
Q: 9. You have completed the field work in connection with your audit of Bridgeport Corporation for th...
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how efficien...
Q: Judylaine Berley opened a laundry shop in General Santos City. With the given chart of accounts, rec...
A: Date (March) Particulars Debit (P) Credit (P) 1 Bank Capital 500,000 500,000 2 Laund...
Q: A bond sells at a discount when the: O Contract rate is above the market rate O Contract rate is equ...
A: If bond is traded/ sold at par then contract rate will be equal to market rate. Because the coupon i...
Q: Which of the following is an advantage of using a perpetual inventory system A. It is effective with...
A: In this question, we have to find out that from the following options which one is the advantage of ...
Q: Present the journal entries specified below. Each item should be considered independently. (Credit a...
A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the en...
Q: On December 31, 2011 , Bunny Co. received a 10% note with face amount of P1,500,000. Both principal ...
A: Interest receivable on December 31, 2012 = Face value of notes x rate of interest x no. of months in...
Q: Which of the following accounts does not increase with a debit entry?A. Retained EarningsB. Building...
A: Debit and credit are two sides of the account, used in accounting. For all assets, expenses and with...
Q: GOTENGCO Company pays cash for three months of rent in advance, at a rate of P120,000 per month. The...
A: Prepaid rent : Prepaid rent means rent paid in advance for which expense have not been incurred yet....
Q: For each of the following items, identify whether the item is considered current or noncurrent, ande...
A: All of a company's assets that are expected to be sold, consumed, utilized, or expended within one y...
Q: Which one of the following illustrates the use of a matching approach to financing? A Permanent ...
A: In maturity finance of working capital maturity of assets and maturity of finance match with each ot...
Q: On June 1,2024, Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Compa...
A: Direct Write off Method - Under direct write off method uncollectible accounts directly write off as...
Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State tha...
A: The variance is the difference between standard production data and actual production data for the c...
Q: A company should not accept a special order for its product for less than its regular sales price. T...
A: Solution Concept In an organization there is regular sales to the outside customers that normally ta...
Q: QUESTION 1 On December 31 , 2018, Ava Company had an ending balance of $5864 in its accounts receiva...
A: NET REALIZABLE ACCOUNTS RECEIVABLE MEANS ACCOUNT RECEIVABLE MINUS THE VALUE OF THE ALLOWANCE FOR DOU...
Q: Costs incurred are summarized as follows: WIP - Polishing Process A/C January 1 Bal. ...
A:
Q: A C. D MVP, Inc. Income Statement For the Year Ended December 31, 2021 Sales $ 375,000 Cost of Goods...
A: Income statement: Income statement as a part of financial statement that presents the organization's...
Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting per...
A: Plant is purchases in the year of its purchase. But the benefit from the plant comes in later years ...
Q: 1,80,00,000. Building Fund 24,00,000, Prize Fund 12,00,000, Reserve Fund (b) Balances as at 1.4.2020...
A: Capital Fund : It is also called accumulated Fund or General fund. It is actually the capital of a n...
Q: A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022. The considera...
A: Solution Total liabilities are the combined debts that an individual or company owes. They are gener...
Q: Apple Inc. iPod Division has the following information: Sales $6,000,000 Variable costs 3,000,000 Fi...
A: If a division is eleminated/dropped, then the incremental effect on the net income of the company wi...
Q: Required: 1. Record each of the transactions listed above. 2. Record adjusting entries on January ...
A: 1. Date General Journal Debit Credit 2021 $ $ Jan 1 Equipment 19,500 Cash 19,500 ...
Q: Identify benefits of using analytical procedures in the audit process
A: Although every audit process is unique, the audit process is similar for most engagements and normal...
Q: Juliana, Inc. leased a piece of commercial land to Ken Corp. for ten years starting January 1, 2022....
A: Under a Spread Method leased Asset income, improvement value would be considered on the basis of end...
Q: Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating shippi...
A: Flexible budget is that type of budget which changes with change in activity level. This type of bud...
Q: (a) For a MARR of 9%, compute the net present worth for each project, and determine the acceptabilit...
A: Period Project- A Project- B Project- C 0 $ (150) $ (120) $ 150 1...
Q: counts receivable- 47,000 counts Payable- 50,000 paid expenses- 1,000 crued Liabilities- 12,000 t Sa...
A:
Q: Yearly Cost of Absenteeism $480,244 Total Salary $7,766,096 Percentage of Salary 6% Number of Workin...
A: The cost associated with absenteeism can be grouped as direct and indire...
Q: Supplies Expense $1,000 Depreciation Expense 600 Salaries Expense 400 The journal entry to close the...
A: The journal entries are prepared to keep the record of day to day transactions of the business. The...
Q: 6. Your firm decides to tighten its credit policy so that customers pay in 30 days rather than 45 d...
A: Option c is correct option . When firm decides to tighten its credit policy from 45 days to 30 days ...
Q: Calculate cash flows with indirect method.
A: Income reported = $ 300000 Decreases in Accounts Receivable = $14500 Increase in accounts payable = ...
Q: a. Create cashflow from this case b. Should this decision be made?
A: ( All figure is in Million) Initial Cost of Device 200 Savings in Cost Y...
Q: Difference between labour cost,cost of sales and selling price in informal and formal business
A: Merchandising Business- A merchandising business is one that deals with the purchase and sale of com...
Q: What is the impact on the accounting equation when a payment of account payable is made?A. both side...
A: Accounting equation of the business has three elements, these are Assets, Liabilities and Equity. Af...
Q: Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's compar...
A: Operating Activities - It starts with all the company operation-related activities like sales, expen...
Q: The following data were drawn from the records of Quentin Corporation. Planned volume for year (stat...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: During 2021, its first year of operations, Pave Construction provides services on account of $156,00...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Farm Dairy has a process that results in 1,000 liters of milk that can be sold for $2 per liter and ...
A: Trade off: It implies to a condition where a balance is maintained between two opposite situations. ...
Q: In its income statement for the year ended December 31, 2022, Pina Colada Corp. reported the followi...
A: An income statement that shows the revenue and expenses of a firm. It also shows if a business is ea...
Q: Question 1 The following balances have been extracted from the books of Alpha Berhad as at 31 Decemb...
A: Financial Statement - Financial Statement of the company includes Profit and Loss Account, Statement...
ONLY QUESTION 20
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.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. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?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?Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
- Cash budget The controller of Mercury Shoes 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, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. 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 June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.
- Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year