The flexible budget will report for fixed costs.
Q: QUESTION 10 Buy the Pound Company allocates machine-related overhead using machine hours and personn...
A: Overhead refers to the indirect expenses that are associated with the manufacturing or the selling o...
Q: Book Value Market Value Cash P10,000 P10.000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,...
A: Net profit Sales 190000 Less: Cost of goods sold (130000) Less :Depreciation (20000) Net p...
Q: QUESTION 1 In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of...
A: The term inventory refers both to raw materials used in manufacturing and the finished goods that ar...
Q: PROBLEM 3 For each of the following, determine the missing amounts Sales COGS Gross Profit Operating...
A: Gross profit = Sales - Cost of goods sold Net Income = Gross profit - Operating expenses
Q: E21.8 (LO3) (Lessor Entries, Sales-Type Lease) Crosley Company, a machinery dealer, leased a machine...
A: Present Value of lease: PV(rate, nper, pmt, [fv]), [type]) = -PV (6%,8,35004, , 1) = 230,410
Q: Question 10 OPS Invest PLC issues a 4-year maturity 9% Coupon Bonds to finance a sustainable solar e...
A: Notes: 1. Premium Bond - If the YTM of the bond is less than the bond's coupon rate, then the marke...
Q: b) Balance the ledger of T.J. Chan by means of a trial balance dated March 31, 20-
A: Trail balance is the statement which is prepared by the company with the aim and purpose to know and...
Q: 2.A partially completed summary of financial data is given below. The data pertain to the fundamenta...
A: Assets = Liabilities + Equity or , Liabilities = Assets - Equity Equity at the end = Equity in the ...
Q: At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: F Corporation sold equipment to its 80% owned subsidiary, R Corp., on January 1, 2016. F sold the eq...
A: Solution Concept When the asset is sold at amount higher than the book value ,there shall be adjusti...
Q: Equivalent Units of Production The Converting Department of Worley Company had 720 units in work in ...
A: Worley Company Number of Equivalent Units of Production Whole units Direct materials Equival...
Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A c...
A: Solution Concept As per the relevant accounting standard Financial liability is -con...
Q: Income Statement Dec. 31, 2022 Company A Company B Sales P850,000 P1,350,000 Less: Cost of Goods Sol...
A: Efficiency in the management of stock is judged by inventory turnover ratio and days inventory outst...
Q: Assume that sales and expenses forecasts for months April, May, June, and July are as follows. 20% ...
A: Cash Budget: A cash budget plan is a report delivered to assist a business with dealing with their i...
Q: Exercise 6-8 (Algo) Performance obligations; customer option for additional goods or services [LO6-4...
A: The c
Q: Two types of intercompany stock purchases significantly complicate the consolidation process. The fi...
A: Introduction: A corporation's stock is divided into shares, which are units of equity ownership. For...
Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-...
A: Period Interest payment Interest expense Amortization Carrying value 0 $421,840 1 $28,000...
Q: What is the value of customer relations and customer service?
A: Customer relations is the relationship with customer and the focus of which is to build customer rel...
Q: The subtotals of the Income Statement columns of the work sheet are Debit Column: $5,500 and Credit ...
A:
Q: Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. T...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: P21.7 (LQ.3) (Lessor Computations and Entries, Sales-Type Lease with Guaranteed Residual Value) Amir...
A: Note: Only a, c, and d are answered as required a. Amount of initial lease liability = ($60,000 x...
Q: Required: Compute the sales manager's bonus and the income tax expense for the Walbrook Company. Rou...
A: Solution:- Given, Income before bonus an tax = $400,000 Tax rate = 40% Bonus rate = 10%
Q: Zing Cell Phone Company entered into the following transactions involving current liabilities during...
A: Notes Payable - Notes Payable is the amount borrowed by the borrower with an obligation to pay it in...
Q: On October 1, 2021 Delta Insurance Srl sold (and received the payment) a six-month insurance to Teta...
A: Solution Concept Unearned revenue When the payment is received for the income that has not yet been ...
Q: Johnson Company adds materials, 50% at the start of the process and 50% at the end of the process in...
A:
Q: choose the correct answer: Equity security acquired for trading should be measured at reporting dat...
A: Equity Securities Held for Trading Equity securities which are held for trading purpose which can be...
Q: How do you calculate the activity rates for overhead activity
A: The activity based costing is used to estimate tonthe total manufacturing cost including overhead co...
Q: The retained earnings account only reflects the profits retained in the business and gains and losse...
A: RE stands for Retained Earnings which refers to the net earnings or the company profits in cumulativ...
Q: cost of equipment____________________
A: Cost of Equipment depends upon which types of transactions you are doing. If cash Transactions you m...
Q: QUESTION 7 Boris' Car Loft, Inc., began operations on January 1. It manufactures 10,000 automobiles ...
A: Costs that are directly associated with production process are known as product costs.
Q: An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations. The foll...
A: Deferred Tax The purpose of creating deferred tax which is any kind of excess amount which are repor...
Q: n January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issu...
A: Solution Working note Coupon amount =600000*7% / 2 ...
Q: Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020...
A: Cash flow statement represents the cash inflow and cash outflow due to the operating, inventing, and...
Q: On June 1, Dollar Hardware, Inc. had an inventory of 300 gas grills costing $100 each. Purchases and...
A: FIFO Method - Under FIFO Method of inventory valuation company used to sell those inventory first wh...
Q: 1. Winston Corporation purchases all of Harley Company’s stock on June 1 for P1,200,000. At that da...
A: In the consolidation worksheet, eliminating entries are utilized to alter the totals of the individu...
Q: Poh Inc., corporation, has the following pertinent information happened during year 2022 P 1,570,000...
A: Statement of Cash Flows using indirect method:
Q: Condensed financial data of Novak Company for 2020 and 2019 are presented below. NOVAK COMPANY COMP...
A: The cash flow statement (CFS) is a financial statement that summarizes the flow of cash and cash equ...
Q: As of December 31, 2020, Yahiko, Konan, and Nagato have capital balances of P240,000, P370,000, and ...
A: Bonus to Nagato = Profit × rate 100 + rate = P120,000 × 20120 = P20,000
Q: Waling-waling Company had 6,400 units of work-in-process inventory in department A on October 1, 202...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and mon...
A: Introduction: A journal entry is an act of recording or keeping track of any financial or non-financ...
Q: Why is issuing a short-term note receivable an investing activity if it's short term and not long te...
A: Solution Concept Short term note receivable are the notes that have maturity period of less than 12 ...
Q: Transactions 1. On March 1, 20– when he began his business, he invested in the business a bank balan...
A: A T-Account is a log or list of accounts that keep track of account transfers.
Q: Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held...
A: Introduction: An income statement is a financial statement that shows the company's income and expen...
Q: Current Year Previous Year Amount Percentage Income Statement Sales Revenue 118,000 $ 53,600 64,400 ...
A: The horizontal analysis of financial statements is made to compare the data of current year to previ...
Q: Cullumber Corporation had the following 2020 income statement. Sales revenue $213,000 Cost of go...
A: Under direct method of cash flow statement, cash receipts and cash expenses are directly considered ...
Q: If Accounts Payable has debit postings of P170,000 credit postings of P140,000 and a normal ending b...
A: Lets understand the basics. For calculating beginning balance, we need to use below formula. Account...
Q: A business has total assets of P 381,000 and owner’s equity of P 264,000. How much were the liabilit...
A: Solution Concept Accounting equation is given as Asset =liabilities + owner’s equity Following t...
Q: You are the warehouse manager for a multi-location business specializing in old style vinyl records....
A: Solution Working note warehouse west store sales 18920.00 43860.00 cost of goo...
Q: Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respective...
A: (A.) Financial advantage (disadvantage) = $360,000 Alphas Per Unit $ Sales 112 Less: Va...
Q: hoose the correct answer: 1. Trading securities are held with the intention of being sold in a shor...
A: Solution Concept Debt securities held to maturity is accounted using amortized cost Debt securities ...
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: Estimated sales at 125 per unit: Estimated finished goods inventories: Work in process inventories are estimated to be insignificant (zero). Estimated direct materials inventories: Manufacturing costs: Selling expenses: Instructions Prepare the following budgets using one column for each month and a total column for the first quarter, as shown for the sales budget: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement with budgeted operating income for March.
- 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.Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders 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 January: Estimated sales for January: Estimated inventories at January 1: Desired inventories at January 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for January: Estimated operating expenses for January: Estimated other revenue and expense for January: Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January. Prepare a factory overhead cost budget for January. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be 9,000, and work in process at the end of January is estimated to be 10,500. Prepare a selling and administrative expenses budget for January. Prepare a budgeted income statement for January.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.
- 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: Estimated sales for March: Estimated inventories at March 1: Desired inventories at March 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for March: Estimated operating expenses for March: Estimated other revenue and expense for March: Estimated tax rate: 30% Instructions Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. 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. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement for March.Budgeted income statement and supporting budgets The budget director of Jupiter Helmets 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 May: Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4200. and work in process at the end of May is desired to be $3800.Static budget versus flexible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of2,358,000. However, the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the MachiningDepartment. Assume depreciation is a fixed cost. b. Compare the flexible budget with the actual expenditures for the first three months.What does this comparison suggest?
- Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production: Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range: a. 8,000-unit level of sales and production b. 12,000-unit level of sales and production (Hint: You must first determine the unit selling price and certain unit costs.)Prepare a flexible budgeted income statement for 47,000 units using the following information from a static budget for 45,000 units:Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor: