selling and administrative expense budget
Q: Send_4_You Ltd bases its bases its selling and administrative expense budget on budgeted unit sales.…
A:
Q: 3. The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit…
A: Cash disbursement for selling and administrative expenses = Variable selling and administrative…
Q: Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:…
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Selling and Administrative Expense Budget Weller Company’s budgeted unit sales for the upcoming…
A: Formulas:
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter…
A: The selling and administrative expense budget is the one which comprises of the budgets of all the…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st…
A: Budgeting Budgeting is one of the important tools for the management to plan and implement the…
Q: Q8) Prepare a cash budget for the first quarter for Shamz Logistics Inc., given the following data.…
A: Cash Budget is a statement of forecast to estimate the receipts and disbursement of cash for an…
Q: Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:…
A: 1) Expected collections from customers: Particulars January $ February $ Cash collections from:…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter…
A: The budgets are prepared to estimate the requirements for the future period.
Q: Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next…
A: Cash Budget : A cash budget itemizes the projected sources and uses of cash in a future period. This…
Q: 1. Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is…
A: Answer
Q: 2 company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash at…
A: A cash budget is an estimation of money flows for a business over a particular period of time. This…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st…
A: Budgets are the forecasted summaries of cost and revenues, prepared to set standards so that actual…
Q: Dart, Inc. makes and sells umbrellas. The company is in the process of preparing its Selling and…
A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…
Q: Cash Budget; Income Statement; Balance Sheet; Changing Assumptions Refer to the data for Minden…
A: 1.
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:
A: In this question, we have to maintain the selling and administrative expense budget it helps in…
Q: Please give solution All sales of Paige Company are on account. Budgeted sales for the first…
A: JANUARY SALES =96000 FEBRUARY SALES = 168800 MARCH = 158400 RECEIPT IN MARCH = JANUARY AMOUNT * 36%…
Q: Vidro Company prepares monthly cash budgets. Relevant data from operating budgets for 2011 are:…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: 18. YunCorp has prepared the following budget for September: $1,500,000 Sales revenue Cost of goods…
A: The cash budget is prepared to determine cash flows. The cash budget also helps in evaluating…
Q: Sved hary hc hes forecast purchases on account to be $313.000 in March, $373,000 in April, $423,000…
A: Budgeted cash payment for June = (Budgeted purchases for June *70%) + (Budgeted purchases of…
Q: SELLING AND ADMINISTRATIVE EXPENSE BUDGET: Weller Company's budgeted unit sales…
A: The budget prepared for selling and administration expenses is prepared to account for the operating…
Q: Cash Budget Capstone Inc. collects 85% of its sales on account in the month of the sale and 15% in…
A: Cash budget refers to the process of forming a budget in order to drive the estimated or expected…
Q: Please provide solution. Ty Gargalicana Company is preparing its cash budget for next year.…
A: Cash budget is the future forecast of cash disbursements to be made and cash to be received from…
Q: Holland Limited makes all purchases on account, subject to the following budgeted payment pattern:…
A: Budgeted accounts payable as on March 31 includes the purchases on account that have been made till…
Q: Part #5: E Company has budgeted sales revenues of $174,000 for May, $210,000 for June, $238,000 for…
A: Given sales revenue for July = $238,000 Percentage of cash collected in month of sale = 55%…
Q: What is the amount of Accounts Receivable as of September 30th
A: Cash budget: Cash budget is a budget prepared by the company for analysing the future cash receipts…
Q: 5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: XYZ Company is preparing its production budget for the next year. Budgeted sales in dollars for…
A: Following is the answer to given question
Q: luepler incorporated bases its seling and administrative expense buaget selling and administrative…
A: The calculation of total fixed costs that represent current cash flows has been made as follows:…
Q: Create a cash budget from April to July based on the following information. Unit sales for April…
A: The question is related to the Cash Budget. Cash Budget is a summary of cash receipts and cash…
Q: Haas Company prepares monthly cash budgets. Relevant data from operating budg- ets for 2011 are:…
A: Cash budget: A budget that is prepared to estimate the inflows and outflows of cash over a…
Q: The following credit sales are budgeted by Terra Co.: January $204,000 February 300,000 March…
A: Collections in April will include: 70% of the April sales. 20% of the March sales. 8% of the…
Q: Problem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the…
A: Cash Budget refers to Future Estimation of Expected cash receipts and Payments to be incurred during…
Q: sales. om. Jada Mcheon Jound CASH BUDGET The MoBay Corporation`s projected sales for the first eight…
A: Cash budgets are prepared from operational budgets and capital funding and other programs. It is…
Q: Send_4_You Ltd bases its bases its selling and administrative expense budget on budgeted unit sales.…
A: The cash disbursements for selling and administrative expenses on the April selling and…
Q: QUESTION 1 Ginobili has forecast sales to be $120100 in February, $151200 in March, $162700 in…
A: Budgeted cash receipts refer to the cash that is received as cash and expected to collect on the…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter…
A: Lets understand the basics. Budget is prepared by management to estimate future profit and loss from…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st…
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: must have a minimum cash balance of RM15,000 at the beginning of each month. Construct cash budget…
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Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st…
A: The budget prepared for selling and administration expenses is prepared to account for the operating…
Q: Deschambault Inc. is working on its cash budget for December. The budgeted beginning cash balance is…
A: Amount need to borrow = Desired ending cash balance - Ending cash available where, Ending cash…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Send_4_You Ltd bases its bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 5,000 units are planned to be sold in April. The variable selling and administrative expense is $10.70 per unit. The budgeted fixed selling and administrative expense is $127,380 per month, which includes
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- A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?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?
- Sales, production, direct materials, direct labor, and factory overhead budgets King Tire Co.s budgeted unit sales for the year 2016 were: The budgeted selling price for truck tires was 200 per tire, and for passenger car tires it was 65 per tire. The beginning finished goods inventories were expected to be 2,000 truck tires and 5,000 passenger tires, for a total cost of 326,478, with desired ending inventories at 2,500 and 6,000, respectively, with a total cost of 400,510. There was no anticipated beginning or ending work-in- process inventory for either type of tire. The standard materials quantities for each type of tire were as follows: The purchase prices of rubber and steel were 2 and 3 per pound, respectively. The desired ending inventories for rubber and steel were 60,000 and 6,000 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: The direct labor rate for each department is as follows: Budgeted factory overhead costs for 2016 were as follows: Required: Prepare each of the following budgets for King for the year ended December 31, 2016: 1. Sales budget. 2. Production budget. 3. Direct material budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold budget.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?CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses arc S2,700 a month. Income tax payments of 63,000 arc due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2014. b. Prepare monthly estimates of the required financing or excess funds that is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 130 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
- 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.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2015 and 2016: May 2015 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2016 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2015 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2015. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1 30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale. 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
- 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?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.Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
