ACCOUNTING PRINCIPLES V2 6/17 >C<
3rd Edition
ISBN: 9781323761458
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 24, Problem 10CP
Comprehensive Problem for Chapters 22-24
The Trolley Toy Company manufactures toy building block sets for children. Trolley is planning for 2019 by developing a
TROLLEY TOY COMPANY Balance Sheet December 31, 2018 |
||
Assets | ||
Current Assets: | ||
Cash S |
$58,000 | |
Accounts Receivable | 22,000 | |
Raw Materials Inventory | 1,200 | |
Finished Goods Inventory | 5,400 | |
Total Current Assets | $ 86,600 | |
Property, Plant, and Equipment: | ||
Equipment | 142,000 | |
Less: Accumulated |
(47,000) | 95,000 |
Total Assets | $ 181,600 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $ 8,000 | |
Common Stock, no par $ 120,000 |
||
53,600 | ||
Total Stockholders' Equity | 173,600 | |
Total Liabilities and Stockholders' Equity | $ 181,600 |
Other budget data for Trolley Toy Company:
- Budgeted sales are 1,400 sets for the first quarter and expected to increase by 150 sets per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Sets are budgeted to sell for $90 per set.
- Finished Goods Inventory on December 31,2018, consists of 200 sets at $27 each.
- Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2020 are expected to be 2,000 sets. FIFO inventory costing method is used.
- Raw Materials Inventory on December 31,2018, consists of 600 pounds. Direct materials requirement is 3 pounds per set. The cost is $2 per pound
- Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31,2019, is 600 pounds: indirect materials are insignificant and not considered for budgeting purposes.
- Each set requires 0.30 hours of direct labor; direct labor costs average $12 per hour.
- Variable manufacturing
overhead is $3.60 per set. - Fixed manufacturing overhead includes $7,000 per quarter in depreciation and $2,585 per quarter for other costs, such as utilities, insurance, and property taxes.
- Fixed selling and administrative expenses include $11,000 per quarter for salaries; $1,500 per quarter for rent; $1,350 per quarter for insurance; and $1,500 per quarter for depreciation.
- Variable selling and administrative expenses include supplies at 2% of sales.
- Capital expenditures include $45,000 for new manufacturing equipment, to be purchased and paid for in the first quarter.
- Cash receipts for sales on account are 40% in the quarter of the sale and 60% in the quarter following the sale; Accounts Receivable balance on December 31,2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes.
- Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter: Accounts Payable balance on December 31,2018, is expected to be paid in thefirst quarter of 2019.
- Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred.
- Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred.
- Trolley desires to maintain a minimum cash balance of $55,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 10% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter.
Requirements
10. Calculate Trolley's
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ACCOUNTING PRINCIPLES V2 6/17 >C<
Ch. 24 - Prob. 1QCCh. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Prob. 7QCCh. 24 - Prob. 8QCCh. 24 - Prob. 9QCCh. 24 - Prob. 10QC
Ch. 24 - Prob. 11AQCCh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - 10. Explain the difference between a centralized...Ch. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 14RQCh. 24 - Prob. 15RQCh. 24 - Prob. 16RQCh. 24 - List the four types of responsibility centers, and...Ch. 24 - What is a performance evaluation system?Ch. 24 - What are the goals of a performance evaluation...Ch. 24 - Prob. 20RQCh. 24 - Prob. 21RQCh. 24 - Prob. 22RQCh. 24 - Prob. 23RQCh. 24 - Prob. 24RQCh. 24 - Prob. 25RQCh. 24 - Prob. 26RQCh. 24 - Prob. 27RQCh. 24 - Prob. 28RQCh. 24 - Prob. 29RQCh. 24 - Prob. 30RQCh. 24 - Prob. 31RQCh. 24 - Prob. 32RQCh. 24 - Prob. 33RQCh. 24 - What is a transfer price?Ch. 24 - Prob. 35ARQCh. 24 - Prob. 36ARQCh. 24 - Prob. S24.1SECh. 24 - Prob. S24.2SECh. 24 - Prob. S24.3SECh. 24 - Prob. S24.4SECh. 24 - Prob. S24.5SECh. 24 - Prob. S24.6SECh. 24 - Describing the balanced scorecard and identifying...Ch. 24 - Prob. S24.8SECh. 24 - Prob. S24.9SECh. 24 - Prob. S24.10SECh. 24 - Prob. S24.11SECh. 24 - Prob. S24.12SECh. 24 - Prob. S24A.13SECh. 24 - Prob. E24.14ECh. 24 - Prob. E24.15ECh. 24 - Prob. E24.16ECh. 24 - E24-17 Computing product costs in traditional and...Ch. 24 - Identifying responsibility centers after...Ch. 24 - Prob. E24.19ECh. 24 - Prob. E24.20ECh. 24 - Prob. E24.21ECh. 24 - Prob. E24.22ECh. 24 - Prob. E24.23ECh. 24 - Prob. E24.24ECh. 24 - Prob. E24.25ECh. 24 - Prob. E24.26ECh. 24 - Prob. P24.27APGACh. 24 - Prob. P24.28APGACh. 24 - Prob. P24.29APGACh. 24 - Prob. P24.30APGACh. 24 - Prob. P24.31APGACh. 24 - Prob. P24.32BPGBCh. 24 - Prob. P24.33BPGBCh. 24 - Prob. P24.34BPGBCh. 24 - Using ROI and Rl to evaluate investment centers...Ch. 24 - Prob. P24.36BPGBCh. 24 - Prob. P24.37CTCh. 24 - Continuing Problem
P24-38 Using ROI and Rl to...Ch. 24 - Comprehensive Problem for Chapters 22-24 The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24
The...Ch. 24 - Comprehensive Problem for Chapters 22-24 The...Ch. 24 - Comprehensive Problem for Chapters 22-24
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The...Ch. 24 - Tying It All Together Case 24-1 Before you begin...Ch. 24 - Prob. 24.1DCCh. 24 - Prob. 24.1EICh. 24 - Fraud Case 24-1 Everybody knew Ed McAlister was a...
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