omts) Chapter 10 HW Mike Tackett, manager of the Troopers Café, has asked for your assistance preparing the monthly budget for January 20X8. He provides you with the prior January actuals as follows: Sales $100,400 Expenses: Labor (F) 12,000 Labor (V) 18,000 Cost of sales (V) 36,000 Supplies (V) 3,200 Energy (V) 2,620 Promotion (V) 1,300 Maintenance (F) 2,000 Maintenance (V) 1,200 Property taxes (F) 800 Depreciation (F) 1,000 Rent (F) 850 Insurance (F) 625 Subtotal 79,595 Net income $ 20,805 Assume for 20X8 sales are expected to increase by 10 percent, fixed costs will increase by 5 percent, and variable costs will remain at the same percentage of sales as experienced in the prior January. Prepare the budget for January 20X8. HOMEWORK HINT: Divide the prior January variable expenses by the prior January sales amount to come up with the percentage of sales for each variable expense. DO NOT ROUND THE PERCENTAGE! Multiply that percentage by the January 2018 Budgeted Sales Amount (that you figure out) to come up with the January 2018 Budgeted Variable Expense Amount.

omts) Chapter 10 HW Mike Tackett, manager of the Troopers Café, has asked for your assistance preparing the monthly budget for January 20X8. He provides you with the prior January actuals as follows: Sales $100,400 Expenses: Labor (F) 12,000 Labor (V) 18,000 Cost of sales (V) 36,000 Supplies (V) 3,200 Energy (V) 2,620 Promotion (V) 1,300 Maintenance (F) 2,000 Maintenance (V) 1,200 Property taxes (F) 800 Depreciation (F) 1,000 Rent (F) 850 Insurance (F) 625 Subtotal 79,595 Net income $ 20,805 Assume for 20X8 sales are expected to increase by 10 percent, fixed costs will increase by 5 percent, and variable costs will remain at the same percentage of sales as experienced in the prior January. Prepare the budget for January 20X8. HOMEWORK HINT: Divide the prior January variable expenses by the prior January sales amount to come up with the percentage of sales for each variable expense. DO NOT ROUND THE PERCENTAGE! Multiply that percentage by the January 2018 Budgeted Sales Amount (that you figure out) to come up with the January 2018 Budgeted Variable Expense Amount.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
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.
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
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On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is attempting to project cash receipts and disbursements through April 30. On May 1, a note payable of 10,000 will be due. This amount was borrowed on January 1 to carry the company through its first four months of operation. The unit purchase cost of the companys single product, a box of Sweet Pleasures chocolates, is 12. The unit sales price is 28. Projected purchases and sales in units for the first four months are: Sales terms call for a 5% discount if paid within the same month that the sale occurred. It is expected that 50% of the billings will be collected within the discount period, 25% by the end of the month after purchase, 19% in the following month, and 6% will be uncollectible. Approximately 60% of the purchases are paid for in the month purchased. The rest are due and payable in the next month. Total fixed marketing and administrative expenses for each month include cash expenses of 5,000 and depreciation on equipment of 2,000. Variable marketing and administrative expenses total 6 per unit sold. All marketing and administrative expenses are paid as incurred. REQUIREMENT You have been asked to prepare a cash budget for the next four months to see if the loan can be repaid. Review the worksheet CASHBUD that follows these requirements. The problem data have already been entered in the Data Section of the worksheet.
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