Question 6 View Policies Current Attempt in Progress Crane Company determines that 59000 pounds of direct materials are needed for production in July. There are 3700 pounds of direct materials on hand at July 1 and the desired ending inventory is 3300 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? ort $175800 O $180600. O $178200. O $173400. ea Chp ins prt sc fho 12 home delete % 5 & 7 backspace lock T P hom G H K enter B pause t shift ctri NM N

Question 6 View Policies Current Attempt in Progress Crane Company determines that 59000 pounds of direct materials are needed for production in July. There are 3700 pounds of direct materials on hand at July 1 and the desired ending inventory is 3300 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? ort $175800 O $180600. O $178200. O $173400. ea Chp ins prt sc fho 12 home delete % 5 & 7 backspace lock T P hom G H K enter B pause t shift ctri NM N

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.1APR: Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget...

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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.
Budgeted income statement and supporting budgets The budget director of Feathered Friends Inc., with the assistance of thee controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December: 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............ 220 ft Bird house........ 320 units at 27 per unit Plastic............ 240 ft Bird house........ 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 ft Bird house........ 205 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............ 0.50 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 pr hr. G. Estimated factory overhead costs for December: Indirect factory wages 75,000 Depreciation of plant and equipment 23,000 Power and light 6,000 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 revenue200 Interest expense122 J. Estimated tax 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.
Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: A. Estimated sales for July by sales territory: Maine: Backyard Chef............................. 310 units at 700 per unit Master Chef............................... 150 units at 1,200 per unit Vermont: Backyard Chef............................. 240 units at 750 per unit Master Chef............................... 110 units at 1,300 per unit New Hampshire: Backyard Chef............................. 360 units at 750 per unit Master Chef............................... 180 units at 1,400 per unit B. Estimated inventories at July 1: Direct materials: Finished products: Grates..................... 290 units Backyard Chef........ 30 units Stainless steel.............. 1,500 lbs. Master Chef........... 42 units Burner subassemblies...... 170 units Shelves.................... 340 units C. Desired inventories at July 31: Direct materials: Finished products: Grates......................... 340 units Backyard Chef........ 40 units Stainless steel.................. 1,800 lbs. Master Chef........... 20 units Burner subassemblies.......... 155 units Shelves........................ 315 units D. Desired materials used in production In manufacture of Backyard Chef: Grates........................................ 3 units per unit of product Stainless steel................................. 24 lbs. per unit of product Burner subassemblies......................... 2 units per unit of product Shelves....................................... 4 units per unit of product In manufacture of Master Chef: Grates........................................ 6 units per unit of product Stainless steel................................. 42 lbs. per unit of product Burner subassemblies......................... 4 units per unit of product Shelves....................................... 5 units per unit of product E. Anticipated purchase price for direct materials: Grates................. 15 per unit Stainless steel.......... 6 per lb. Burner subassemblies...... 110 per unit Shelves.................... 10 per unit F. Desired labor requirements: Backyard Chef: Stamping Department...................... 0.50 hr. at 17 per hr. Forming Department....................... 0.60 hr. at 15 per hr. Assembly Department...................... 1.00 hr. at 14 per hr. Master Chef: Stamping Department...................... 0.60 hr. at 17 per hr. Forming Department....................... 0.80 hr. at 15 pr hr. Assembly Department...................... 1.50 hrs. at 14 per hr. Instructions 1. Prepare a sales budget for July. 2. Prepare a production budget for July. 3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January I, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash 85,000 Accounts Receivable........................................ 125,600 Finished Goods............................................ 69,300 Work in Process............................................ 32,500 Materials.................................................. 48,900 Prepaid Expenses.......................................... 2,600 Plant and Equipment....................................... 325,000 Accumulated DepreciationPlant and Equipment........... 156,200 Accounts Payable.......................................... 62,000 Common Stock. 10 par.................................... 180,000 Retained Earnings.......................................... 290,700 688,900 688,900 Factory output and sales for 20Y9 are expected to total 200,000 units of product, which are to be sold at 5.00 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials.................................. 1.10 Direct labor...................................... 0.65 Factory overhead: Depreciation of plant and equipment........... 40,000 Other factory overhead........................ 12,000 0.40 Selling expenses: Sales salaries and commissions.................... 46,000 0.45 Advertising...................................... 64,000 Miscellaneous selling expense................... 6,000 0 25 Administrative expenses: Office and officers salaries........................ 72,400 0.12 Supplies......................................... 5,000 0.10 Miscellaneous administrative expense............. 4,000 0.05 Balances of accounts receivable, prepaid expenses, anti accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 30,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.15 per share are expected to be declared and paid in March, June. September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 75,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y9. 2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Cash. 26,000 Finished Goods.............................................. 16,900 Work in Process.............................................. 4,200 Materials.................................................... 6,400 Prepaid Expenses............................................ 600 Plant and Equipment......................................... 82,000 Accumulated DepreciationPlant and Equipment............. 32,000 Accounts Payable............................................ 14,800 Common Stock. 1.50 par..................................... 30,000 Retained Earnings............................................ 83,100 159,900 159,900 Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials................................... 30.00 Direct labor....................................... 840 Factory overhead: Depreciation of plant and equipment............ 4,000 Other factory overhead......................... 1,400 4.80 Selling expenses: Sales salaries and commissions..................... 12,800 13.50 Advertising....................................... 13,200 Miscellaneous selling expense..................... 1,000 2.50 Administrative expenses: Office and officers salaries......................... 7,800 7.00 Supplies.......................................... 500 1.20 Miscellaneous administrative expense.............. 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances, federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y9. 2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
Forecast sales volume and sales budget Sentinel systems Inc. prepared the following sales budget for 20Y8: At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be increased 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 31, 201Y9
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.
Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., 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 March: A. Estimated sales for March: Batting helmet.................. 1,200 units at 40 per unit Football helmet................. 6,500 units at 160 per unit B. Estimated inventories at March 1: Direct materials: Finished products: Plastic............ 90 lbs. Batting helmet....... 40 units at 25 per unit Foam lining....... 80 lbs. Football helmet...... 240 units at 77 per unit C. Desired inventories at March 31: Direct materials: Finished products: Plastic............ 50 lbs. Batting helmet....... 50 units at 25 per unit Foam lining....... 65 lbs. Football helmet...... 220 units at 78 per unit D. Direct materials used in production: In manufacture of batting helmet: Plastic............................... 1.2lbs. per unit of product Foam lining......................... 0.5 lb. per unit of product In manufacture of football helmet: Plastic............................... 3.5lbs. per unit of product Foam lining.......................... 1.5 lbs. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic........................ 6 per lb. Foam lining................... 4 per lb. F. Direct labor requirements Batting helmet: Molding Department............. 0.2 hr. at 20 per unit Assembly Department............ 0.5 hr. at 14 per hr. Football helmet: Molding Department............. 0.5 hr. at 20 per hr. Assembly Department............ 1.8 hrs. at 14 per hr. G. Estimated factory overhead costs for March: Indirect factory wages 86,000 Depreciation of plant and equipment 12,000 Power and light 4,000 Insurance and property tax 2,300 H. Estimated operating expenses for March: Sales salaries expense 184,300 Advertising expense 87,300 Office salaries expense 32,400 Depreciation expenseoffice equipment 3,800 Telephone expenseselling 5,800 Telephone expenseadministrative 1,200 Travel expenseselling 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 I. Estimated other income and expense for March: Interest revenue 940 Interest expense 872 J. Estimated tax rate:30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March. 5. Prepare a factory overhead cost budget for March. 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be 15,300, and work in process at the end of March is desired to be 14,800. 7. Prepare a selling and administrative expenses budget for March. 8. Prepare a budgeted income statement for March.
Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 20Y9, unit sales are expected to Follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" 10" the frame is expected to Increase to 17 and the unit selling price for the 12" 16" frame is expected to increase to 32, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31,. 20Y8, Over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 51. 20Y9.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Regina Soap Co.: Cash............................................................. 85,000 Accounts Receivable............................................... 125,600 Finished Goods................................................... 69,300 Work in Process................................................... 32,500 Materials......................................................... 48,900 Prepaid Expenses................................................. 2,600 Plant and Equipment.............................................. 325,000 Accumulated Depreciation Plant and Equipment.................. 156,200 Accounts Payable................................................. 62,000 Common Stock, 10 par........................................... 180,000 Retained Earnings................................................. 290,700 688,900 688,900 Factory output and sales for 2017 are expected to total 200,000 units of product, which are to be sold at 5.00 per unit. The quantities and costs of the inventories at December 31, 2017, are expected to remain unchanged from the balances at The beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Cost of goods manufactured and sold: Fixed (Total for Year) Direct materials................................................ 1.10 Direct labor.................................................... 0.65 Factory overhead: Depreciation of plant and equipment.......................... 40,000 Other factory overhead....................................... 12,000 0.40 Selling expenses: Sales salaries and commissions.................................. 46,000 0.45 Advertising.................................................... 64,000 Miscellaneous selling expense.................................. 6,000 0.25 Administrative expenses: Office and officers salaries...................................... 72,400 0.12 Supplies....................................................... 5,000 0.10 Miscellaneous administrative expense........................... 4,000 0.05 Balances, of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 30,000 on 2017 taxable income will be paid during 2017. Regular quarterly cash dividends of 0.15 per share are expected to be declared and paid in March, June, September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 75,000 cash in May. Instructions 1. Prepare a budgeted income statement for 2017. 2. Prepare a budgeted balance sheet as of December 31, 2017, with supporting calculations.