1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18.000 units.
Q: M/s. Green Channel purchased a second-hand machine on 1st January, 2015 for 1,60,000. Overhauling…
A: Working Note - Book Value of Machine (Straight Line Method) Particular Machine I…
Q: Showtime Company's ending inventory at December 31, 2020, includes the following items: Units on Net…
A: Lets understand the basics. As per IAS 2 "Inventories" needs to be valued at the lower of cost or…
Q: Ted Coverdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your…
A: Solution:- 1)Calculation of Basic Earning per share as follows under:- Basic Earning per share =(Net…
Q: 1: ce .1 Beginning inven 5 Purchase Transac .3 Purchase culate ending inventor
A: The LIFO ( Last in first out ) method assumes that the most recent products added to a company’s…
Q: Salaries from December 15-31, 2017 were accrued in the amount of 100,000. ADJUSTING ENTRY; EFFECT IF…
A: Adjusting journal entry is the entry which is made and recorded at the end of the year to record the…
Q: Prepare 2 T-Accounts, one for TA/R (using the gross amount) and one for the Allowance for Doubtful…
A: Trade receivables A/C Particulars Amount Particulars Amount To sales (Collection) 1,131,209…
Q: Sales Mix Analysis Delving further into the operations, another branch which is in the…
A: Calculation of Sales Required to earn Target Income of $ 135,000 Desired Sales = (Fixed Costs +…
Q: On January 1, 2016, Matthew Company's work in process inventory account had a balance of $46,000.…
A: Cost accounting Cost accounting refers to the technique of ascertaining cost. In other words, cost…
Q: The 2020 audit of Lane Company’s accounting records discloses the following information: 1. Next…
A: Accounts receivables represent the amount owed by the entity from its customers relating to supply…
Q: a) In each of the following parts, write an expression that shows the relationship among the listed…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020:…
A: Req: 1 Date General Journal Debit Credit Jan. 01, 2020 Debt Investment - Jaguar Corp.…
Q: Scenario 2 On January 1, 2020, Harvey Inc. made available $100,000 of 20 years, 10% bonds at par…
A: Long-term liabilities are those liabilities that are payable beyond one year. The payment for these…
Q: eports reserves of $100,000, government securities of $250,000, loans of $750,000, checkable…
A: A reserve has to be maintained by the bank. This ratio of the reserve is known as the reserve ratio.…
Q: Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $1,600…
A: Journal entry to record the factory labor costs: Date Account Titles Debit Credit xxx Work in…
Q: Foling espenses 275000 Average operang aets Shaders empy NOO w.m re wed ate of retum FON or the past…
A: Formula: Turnover = ( Sales value / Average operating Assets )
Q: Kling Company was organized in late 2019 and began operations On January 2, 2020. Prior to the…
A: Expenses refer to the costs incurred by the entity over a specific period of time as a consideration…
Q: Objectives 1) Use the stated collection policy of an entity to determine the expected monthly…
A: The question is related to Cash Budget. Cash Budget is summary of cash receipts and cash payments…
Q: On January 2, 2017, Favorite Clothing Consignments purchased showroom fixtures for $12,000 cash,…
A: Depreciation is the systematic reduction of a fixed asset's reported cost until the asset's value is…
Q: The Principal City prepared the Trial Balance of the corporate-type fund as of December 31, 20X1.…
A: A statement that presents the income and expenses of the owner's funds is known as a Statement of…
Q: 1-) A strategic business unit, a-) is a single business b-) has its own competitors c-) has its own…
A: Let us first understand what is a strategic business unit. A strategic business unit is a fully…
Q: Consider the following information pertaining to OldWest's inventory: Net Realizable Value $157…
A: Formula: Inventory value = Quantity x lower of cost or NRV
Q: 1. :An employer in the U.S. Virgin Islands, employs two individuals, whose taxable earnings to date…
A: Federal Unemployment Taxes (FUTA) Federal unemployment taxes which are provided for the benefit for…
Q: On December 31, 2016, Headland Inc. borrowed $840,000 at 12% payable annually to finance the…
A: Bonds: Bonds are the fixed interest securities that are traded in stock market. The investors bought…
Q: Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business…
A: Answer - Calculation of Estimated Ending Inventory at Cost - Particular AmountRetail AmountCost…
Q: Techno Inc. has two divisions: Auxiliary Components and Audio Systems. Divisional managersare…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Sales $1248000 Contribution margin 466560 Total direct fixed costs 405000 Total operating assets…
A: Formula: ROI = Net profit / Average Operating Assets.
Q: Assume the following cost information for Standard Corporation: Selling price per unit Variable…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: sed on your analysis in requirement 1, which product or products should be sold at the split-off…
A: A split-off point occurs when formerly jointly created components are now manufactured separately,…
Q: Factory Overhead Costs During May, Salinger Company incurred factory overhead costs as follows:…
A: Factory overhead includes all the indirect expenses such as indirect material, indirect labor,…
Q: Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are…
A: Fixed cost is the cost that never changes/ varies as a whole and variable cost is the cost that…
Q: California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1,…
A: COGS % = 1 - Gross profit% Cost of goods available for sale = Beginning inventory + purchases Ending…
Q: Debt-to-Capital = 0.27 + .15(PPE/Assets). If Krent Foods as a PPE/Assets ratio of 30% (and other…
A: Debt to Capital = 0.27+0.15 ( PPE/Assets) PPE/Assets Ratio=30% needs to calculate optimal debt…
Q: Q1: Mater Pasta Inc. has projected a sales volume of $1,432 for the second year of a proposed…
A: Calculation of Operating Cash Flow Operating Cash Flow = Net Income + Depreciation Expense Operating…
Q: A schedule of budgeted cash collections for trade receivables (sales on account) for each of the…
A: SALLAT Household Furnishings & Appliances is a family-owned business. As a management accountant…
Q: Last year Hever Inc. had sales of $1,000,000, based on a unit selling price of $400. The variable…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market rate was…
A: Solution 1: Computation of bond price Table values are based on: n= 20 i= 5.00%…
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Solution.... (a).After issuing of notes Current assets = $900,000 Current liabilities =…
Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…
A: Formula: Variable overhead cost variance = Actual hours x ( standard - actual cost )
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a…
A: Variable cost per copy using high-low method (Highest Cost - Lowest Cost) / (Highest No. of Copies -…
Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: I. Write "T" if the statement is True and write "F" if otherwise 1. Depreciation charges throughout…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Illu.1 : A Ltd. acquired B Ltd. Business with the following values. Rs. Fixed Asets 3,00,000…
A: Lets understand the basics. When one company acquire another company then acquirer company gives the…
Q: Activity Costing, Assigning Resource Costs, Primary andSecondary ActivitiesElmo Clinic has…
A: Activity-based costing (ABC) is a cost-calculating approach used in production. It categorizes…
Q: Comfort Shoes Manufacturing Company began business on January 1, 2016. During its first year of…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: lease help with question B and C: B.) Another team member who is preparing the Budgeted Balance…
A: Cash Budget Budgeted Cash Collection for Trade receivable Budgeted Cash Collection for Trade…
Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…
A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…
Q: Iρngmire & Sons made sales On credit to Alderman Sports totaling $500,000 On April 18. The cost…
A: Whenever a physical inventory counting is performed, a periodic inventory system just maintains the…
Q: The following information is supplied about one of the company’s main products and management wants…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Miller Corporation acquired 30% of ilie outstanding common stock of Crowell Corporation for $160,000…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
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 with 2 images
- Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 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: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:
- The following is the budgeted information of 3Z Company for the year 2021: Service Departments Producing Departments S1 S2 P1 P2 Budgeted overhead before distribution of service costs Direct labor hours Machine hours Number of employees Area occupied (sq ft) P300,000.00 P 150,000.00 P1,500,000.00 P750,000.00 6,000 45,400 25 30,000 33,250 5,000 150 50,000 13 8 4,200 1,500 Actual prime cost for the last quarter Of 2021 in the production of 15,000 units of Product MM is summarized below: P1 P2 11,250 hrs Direct labor hours 1,200 DLh @ P35 6,550 DLH @ P35 Machine hours 1,250 hrs Materials P75 per unit P5 per unit Additional information: • The company computes predetermined overhead rates based on machine hours in P1 and direct labor hours in P2, after distributing service costs using direct method. Sl costs are distributed based on area occupied and S2 costs are based on number of employees. Required: Compute for the total production costs of Product MM.Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 400,000 $20 30,000 25,000 2 30,000 40,000 $3 0.4 $12 $13 Product JB 60 200,000 $25 15,000 10,000 3 10,000 15,000 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product…Other variabie coeta 5,806 9,100 $42,500 Fixed service oonta Total service conts Marketing and adninistrative costa Marketing (variable vith respeet to neala) Administrative (Eixed) Total narketing and adminietrative conta 6,400 4,200 $10,600 2otal conta $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermedlate calculations.) Carreras Cafe Budgeted Income Sitatement For the month of June Service conts Total service costo Alext
- Exercise 8-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000 units x $202 per unit) Costs Direct materials Direct labor Indirect materials 2,020,000 250,000 430,000 270,000 Supervisor salary 50,000 Sales commissions 90,000 Shipping 150,000 Administrative salaries 100,000 Depreciation-Office equipment 70,000 Insurance 40,000 Office rent 50,000 Income 520,000 1. Compute total variable cost per unit. 2 Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 8,000 units and 12,000 units. Variable costs Fixed costs TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost Units Sales of 3,000 Flexible Budget for Unit Sales of 12,000 < Required 2 0.00 0 $ S 0 $ 0 RequiredRelevant data from the Poster Company's operating budgets are: Quarter 1 Quarter 2 Sales $208,460 $211,540 Direct material purchases 115,295 120,831 Direct labor 75,210 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,600 33,500 Depreciation included in selling and administrative 1,500 1,000 Collections from customers 215,392 240,155 Cash payments for purchases 114,290 119,254 Additional data: Capital assets were sold in January for $9,000 and $4,400 in May. Dividends of $4,400 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $60,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance v Add: Cash Receipts Collections from Customers Other Collections Total Receipts $ Total Available Cash $ Less: Cash Payments…Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,480 $211,540 Direct material purchases 115,300 120,832 Direct labor 75,205 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,400 33,500 Depreciation included in selling and administrative 1,500 900 Collections from customers 215,392 240,154 Cash payments for purchases 114,290 119,254 Additional data:Capital assets were sold in January for $10,000 and $4,400 in May.Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters Quarter 1 Quarter 2 $Beginning Cash Balance $Beginning Cash Balance Add: Cash Receipts Collections from Customers…
- Relevant data from the Poster Company's operating budgets are: Quarter 1 Quarter 2 Sales $208,460 $211,540 Direct material purchases 115,295 120,831 Direct labor 75,210 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,600 33,500 Depreciation included in selling and administrative 1,500 1,000 Collections from customers 215,392 240,155 Cash payments for purchases 114,290 119,254 Additional data: Capital assets were sold in January for $9,000 and $4,400 in May. Dividends of $4,400 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $60,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Add: Cash Receipts Total Receipts Total Available Cash Less: Cash Payments Total Cash Payments Excess (Deficiency) of Available Cash Over Cash…Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,832 Direct labor 75,205 73,299 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,400 1,100 Collections from customers 215,391 240,154 Cash payments for purchases 114,300 119,253 Additional data:Capital assets were sold in January for $9,000 and $4,600 in May.Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts Collections from…Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,538 Direct material purchases 115,295 120,833 Direct labor 75,210 73,299 Manufacturing overhead 25,400 25,200 Selling and administrative expenses 33,500 33,600 Depreciation included in selling and administrative 1,500 1,100 Collections from customers 215,393 240,154 Cash payments for purchases 114,290 119,253 Additional data:Capital assets were sold in January for $9,000 and $4,400 in May.Dividends of $4,500 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts fill in the blank 5 fill in the blank…