Homework Help is Here – Start Your Trial Now!
Business
Accounting
Madonna Company is preparing its Master Budget for 2022. Budget information are as follows: Sales Production Cost Operating Expenses P192,000 2022 First quarter Second quarter Third quarter Fourth quarter P280,000 P64,000 320,000 200,000 68,000 360,000 224,000 72,000 352,000 200,000 76,000 2023 First quarter 320,000 224,000 72,000 The budgeted finished goods inventories are: P 56,000 52,000 60,000 48,000 2021: March 31 June 30 September 30 December 31 The company uses the JIT system on its purchase of materials. It buys materials on cash basis. Included in production cost cach quarter is P 44,000 in depreciation. The operating expenses include depreciation of P 12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence. Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P 20,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P 120,000. Income tax is equal to 32% of the quarter's income before tax and is paid in the following quarter. The company's balance sheet as of December 31,2021 is as follows: Madonna Company Balance Sheet December 31, 2021 Assets Equities Cash P 76,000 Income tax P 12,000 payable Accounts receivable, net 120,000 Inventory Plant and equipment, net Total assets Capital stock Retained Earnings Total equity 44,000 640,000 168,000 580,000 P 820,000 P 820,000

Madonna Company is preparing its Master Budget for 2022. Budget information are as follows: Sales Production Cost Operating Expenses P192,000 2022 First quarter Second quarter Third quarter Fourth quarter P280,000 P64,000 320,000 200,000 68,000 360,000 224,000 72,000 352,000 200,000 76,000 2023 First quarter 320,000 224,000 72,000 The budgeted finished goods inventories are: P 56,000 52,000 60,000 48,000 2021: March 31 June 30 September 30 December 31 The company uses the JIT system on its purchase of materials. It buys materials on cash basis. Included in production cost cach quarter is P 44,000 in depreciation. The operating expenses include depreciation of P 12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence. Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P 20,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P 120,000. Income tax is equal to 32% of the quarter's income before tax and is paid in the following quarter. The company's balance sheet as of December 31,2021 is as follows: Madonna Company Balance Sheet December 31, 2021 Assets Equities Cash P 76,000 Income tax P 12,000 payable Accounts receivable, net 120,000 Inventory Plant and equipment, net Total assets Capital stock Retained Earnings Total equity 44,000 640,000 168,000 580,000 P 820,000 P 820,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 1PB
See similar textbooks
icon
Related questions
Question
  1. What is the budgeted balance of retained earnings as of December 31, 2022?
  2. What is the expected balance of the plant and equipment accounts as of December 31, 2022?
  3. If a budgeted balance sheet as of December 31, 2022 is to be prepared, how much will be the total assets?
Madonna Company is preparing its Master Budget for 2022. Budget information are as follows: Sales Production Cost Operating Expenses 2022 First quarter P280,000 P192,000 P64,000 200,000 68,000 Second quarter Third quarter Fourth quarter 320,000 360,000 224,000 72,000 352,000 200,000 76,000 2023 First quarter 320,000 224,000 72,000 The budgeted finished goods inventories are: 2021: March 31 P 56,000 52,000 June 30 September 30 December 31 60,000 48,000 The company uses the JIT system on its purchase of materials. It buys materials on cash basis. Included in production cost each quarter is P 44,000 in depreciation. The operating expenses include depreciation of P 12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence. Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P 20,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P 120,000. Income tax is equal to 32% of the quarter's income before tax and is paid in the following quarter. The company's balance sheet as of December 31,2021 is as follows: Madonna Company Balance Sheet December 31, 2021 Assets Equities Cash P 76,000 Income tax P 12,000 payable Accounts receivable, net Inventory Plant and equipment, net Total assets 120,000 44,000 580,000 P 820,000 Capital stock Retained Earnings Total equity 640,000 168,000 P 820,000
Transcribed Image Text:Madonna Company is preparing its Master Budget for 2022. Budget information are as follows: Sales Production Cost Operating Expenses 2022 First quarter P280,000 P192,000 P64,000 200,000 68,000 Second quarter Third quarter Fourth quarter 320,000 360,000 224,000 72,000 352,000 200,000 76,000 2023 First quarter 320,000 224,000 72,000 The budgeted finished goods inventories are: 2021: March 31 P 56,000 52,000 June 30 September 30 December 31 60,000 48,000 The company uses the JIT system on its purchase of materials. It buys materials on cash basis. Included in production cost each quarter is P 44,000 in depreciation. The operating expenses include depreciation of P 12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence. Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P 20,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P 120,000. Income tax is equal to 32% of the quarter's income before tax and is paid in the following quarter. The company's balance sheet as of December 31,2021 is as follows: Madonna Company Balance Sheet December 31, 2021 Assets Equities Cash P 76,000 Income tax P 12,000 payable Accounts receivable, net Inventory Plant and equipment, net Total assets 120,000 44,000 580,000 P 820,000 Capital stock Retained Earnings Total equity 640,000 168,000 P 820,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Planning and Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS