Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for use in developing the budgets for the first quarter (June, July, August) of its fiscal year: Estimated sales at $36 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 August. Prepare a production budget for August. Prepare a direct materials purchases budget for August. Prepare a direct labor cost budget for August. Prepare a factor overhead cost budget for August. Prepare a cost of goods sold budget for August. Prepare a selling and administrative expenses budget for August. Prepare a budgeted income statement with budgeted operating income for August.

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
Chapter 22, Problem 4PB
Textbook Problem

Budgeted income statement and supporting budgets for three months

Newport Inc. gathered the following data for use in developing the budgets for the first quarter (June, July, August) of its fiscal year:

Estimated sales at $36 per unit:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  1

Estimated finished goods inventories:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  2

Work in process inventories are estimated to be insignificant (zero).

Estimated direct materials inventories:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  3

Manufacturing costs:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  4

Selling expenses:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  5

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:

Chapter 22, Problem 4PB, Budgeted income statement and supporting budgets for three months Newport Inc. gathered the , example  6

Prepare a sales budget for August.

Prepare a production budget for August.

Prepare a direct materials purchases budget for August.

Prepare a direct labor cost budget for August.

Prepare a factor overhead cost budget for August.

Prepare a cost of goods sold budget for August.

Prepare a selling and administrative expenses budget for August.

Prepare a budgeted income statement with budgeted operating income for August.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 22 Solutions

Financial And Managerial Accounting
Ch. 22 - At the beginning of the period, the Fabricating...Ch. 22 - Pasadena Candle Inc. projected sales of 800,000...Ch. 22 - Pasadena Candle Inc. budgeted production of...Ch. 22 - Pasadena Candle Inc. budgeted production of...Ch. 22 - Prepare a cost of goods sold budget for Pasadena...Ch. 22 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 22 - At the beginning of the school year, Craig Kovar...Ch. 22 - Digital Solutions Inc. uses flexible budgets that...Ch. 22 - Static budget versus flexible budget The...Ch. 22 - Flexible budget for Assembly Department Steelcase...Ch. 22 - Production budget Healthy Measures Inc. produces a...Ch. 22 - Sales and production budgets Sonic Inc....Ch. 22 - Professional foes earned budget for a service...Ch. 22 - Professional labor cost budget for a service...Ch. 22 - Direct materials purchases budget Tobins Frozen...Ch. 22 - Direct materials purchases budget Coca-Cola...Ch. 22 - Direct materials purchases budget Anticipated...Ch. 22 - Direct labor cost budget Ace Racket Company...Ch. 22 - Production and direct labor cost budgets Levi...Ch. 22 - Factory overhead cost budget Sweet Tooth Candy...Ch. 22 - Cost of goods sold budget Delaware Chemical...Ch. 22 - Cost of goods sold budget The controller of...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash payments for service company...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Capital expenditures budget On January 1, 20Y6,...Ch. 22 - Forecast sales volume and sales budget For 20Y8,...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Bridgeport...Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Forecast sales volume and sales budget Sentinel...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Mercury Shoes Inc....Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Analyze Johnson Stores staffing budget for...Ch. 22 - Nursing staff budget Mercy Hospital staffs its...Ch. 22 - Parking lot staff budget Adventure Park is a large...Ch. 22 - Housekeeping staff budget Ambassador Suites Inc....Ch. 22 - Ethics in Action The director of marketing for...Ch. 22 - Communication The city of Milton has an annual...Ch. 22 - Evaluating the budgeting system in a service...Ch. 22 - Static budget for a service company A hank manager...Ch. 22 - Objectives of the master budget Dominos Pizza LLC...Ch. 22 - When compared to static budgets, flexible budgets:...Ch. 22 - Hannon Retailing Company prices its products by...Ch. 22 - Ming Company has budgeted sales at 6,300 units for...Ch. 22 - Krouse Company produces two products, forged...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Should an economic model describe reality exactly?

Principles of Economics (MindTap Course List)

An increase in accounts receivable is deducted from net income to compute cash from operating activities.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Explain whether the following statement is true or false: 100 a year for 10 years is an annuity; but 5100 in Ye...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)