accounting task

Project Description:

you are a manager for peyton approved, a pet supplies manufacturer. this responsibility requires you to create budgets, make pricing decisions, and analyze the results of operations to determine if changes need to be made to make the company more efficient.
you will be preparing a budget for the quarter july through september 2014. you are provided the following information. the budgeted balance sheet at june 30, 2014, is:
peyton approved
budgeted balance sheet 30-jun-15
assets
cash $42,000
accounts receivable raw materials inventory
finished goods inventory
total current assets
equipment $720,000
less accumulated depreciation 240,000 total assets
liabilities and equity accounts payable
short-term notes payable
taxes payable
total current liabilities
259,900 35,650
241,080 578,630
480,000 $1,058,630
$63,400
24,000
10,000 97,400

long-term note payable total liabilities
common stock retained earnings
total stockholders’ equity total liabilities and equity
$600,000 61,230
300,000 397,400
661,230 $1,058,630
1. sales were 20,000 units in june 2014. forecasted sales in units are as follows: july, 19,000; august, 21,000; september, 20,000; october, 24,000. the product’s selling price is $17.50 per unit and its total product cost is $14.35 per unit.
2. the june 30 finished goods inventory is 14,700 units.
3. going forward, company policy calls for a given month’s ending finished goods inventory to equal 70% of the next month’s expected unit sales.
4. the june 30 raw materials inventory is 4,375 units. the budgeted september 30 raw materials inventory is 1,980 units. raw materials cost $8 per unit.
each finished unit requires 0.50 units of raw materials. company policy calls for a given month’s ending raw materials inventory to equal 20% of the next
month’s materials requirements.
5. each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour.
6. overhead is allocated based on direct labor hours. the predetermined variable overhead rate is $1.35 per direct labor hour. depreciation of $20,000 per
month is treated as fixed factory overhead.
7. monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable.
8. sales representatives’ commissions are 10% of sales and are paid in the month of the sales. the sales manager’s monthly salary is $3,750 per month.
9. the company expects 30% of sales to be for cash and the remaining 70% on credit. receivables are collected in full in the month following the sale (none
are collected in the month of the sale).
10. all raw materials purchases are on credit, and no payables arise from any other transactions. one month’s raw materials purchases are fully paid in the
next month.
11. dividends of $20,000 are to be declared and paid in august.
12. income taxes payable at june 30 will be paid in july. income tax expense will be assessed at 35% in the quarter and paid in october.
13. equipment purchases of $100,000 are budgeted for the last day of september.
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $0 to $10
Completed
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