Prepare a cash budget for the month of JULY only from the Beginning Cash Balance to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare a cash budget for the month of JULY only from the Beginning Cash Balance to the Ending Cash Balance. Do not include minimum cash balance in the original cash budget calculations. After you complete the July cash budget, what would you recommend the minimum cash balance be set at? Show ALL CALCULATIONS to get credit. See the budgeted information by month that is at the end of your information data sheet and the following: JULY 1 balance in Cash =$30,000. Collections: 60% collected in the current month and 40% is collected in the next month. Labor payments: 70% of hourly wages paid in the current month and 30% is paid in the next month. Materials payments: 100% is paid in the next month. Overhead payments: 100% is paid in the current month. Do not include minimum cash balance in the initial cash budget. At the end show what you think the minimum cash balance should be based on this month of information. OPERATING ASSETS BUDGET Budgeted operating assets ACTUAL Actual operating assets BUDGETED INCOME STMT FOR 2020 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET Total 2020 REVENUE 66,921 LABOR HOURS January-20 1,498 February-20 1,747 March-20 April-20 1,747 78,074 1,747 78,074 78,074 May-20 1,747 78,074 June-20 1,997 89,228 July-20 2,496 111,534 August-20 3,744 167,302 September-20 2,995 133,841 October-20 2,496 November-20 1,498 December-20 1,248 111,534 66,921 55,767 24,960 $1.115,344 $860,000 $860,000 DIRECT LABOR SERVICE SELLING/ADMIN MATERIALS OVERHEAD OVERHEAD 18,900 30,671 35,783 22,050 35,783 22,050 35,783 22,050 22,050 25,200 51,118 31,500 76,677 47,250 61,342 37,800 51,118 31,500 30,671 18,900 25,558 15,750 $511,181 $315,000 35,783 40,894 10,500 12,250 12,250 12,250 12,250 2,208 2,524 3,155 4,732 3,785 17,500 3,155 10,500 1,893 8,750 1,576 $175,000 $31.545 14,000 17,500 1,893 2,208 2,208 2,208 26,250 21,000 PROFIT 4,957 5,783 5,783 5,783 5,783 6,610 8,261 12,393 9,914 8,261 4,957 4,133 $82,618 BUDGET Total hourly labor budgeted per hour BUDGET Total budgeted labor dollars ACTUAL Total dollars paid in labor BILLED Total labor dollars billed out BUDGET Budgeted hours work and bill ACTUAL BILLED LABOR: for 12 hourly employees, including benefits BUDGET ACTUAL BUDGET ACTUAL BILLED BUDGET Budget overhead markup % (multiplied by labor+materials) BUDGET Budgeted total overhead costs ACTUAL Actual total overhead costs BILLED Billed overhead to customers BUDGET Budgeted service overhead costs ACTUAL Actual service overhead costs Actual hours worked Billed hours BUDGET BUDGET OVERHEAD AND OVERHEAD MARKUP: NOTE: SERVICE Overhead is a product cost, SELLING & ADMIN Overhead is a period cost. 25% Budgeted selling & admin overhead costs Actual selling & admin overhead costs REVENUE: Budgeted revenue Collected actual revenue Billed revenue PROFIT: Budget profit markup % (multiplied by labor+materials) Budget profit in dollars ACTUAL Actual profit BILLED Billed profit $20.48 $511,181 $559,897 $488,243 24,960 25,210 23,840 $206,545 $231,346 $168,119 $175,000 $186,540 $31,545 $44,806 $1,115,344 $1,048,744 $1,048,744 10.00% 82,618 (63,645) 80,057 FALL 2021 FINAL PROJECT MAINTENANCE DIVISION of CEDAR PROPERTIES MAINTENANCE ACCOUNTING INFORMATION for 2020: Total markup %-Overhead markup % + Profit markup % Billed to customer-[(hours worked on job x billed labor rate/hour)+ (materials used)] x [Total markup Hours worked (billed) on each job=(Time spent at job site+ Time to and from that location) rounded up to 0.25 of an hour (15 minute increments) BILLED The billed labor cost is: BILLED BILLED BILLED BILLED BILLED BILLED BILLED BUDGET ACTUAL BILLED average hourly wage cost paid to maintenance workers x (52 weeks pald/48 weeks worked to account for paid time off) Hourly rate including paid time off Hourly rate including paid time off Average employer hourly wage costs (employer FICA, unemployment taxes, health Insurance) TOTAL BILLED LABOR COST Budget begin, materials Inventory on 1/1/2020 Actual begin, materials Inventory on 1/1/2020 Materials budgeted to purchase HAVE MERENDA MOTE BUDGET ACTUAL BUDGET ACTUAL Total materials billed out BUT $14.00 1.0833 $15.17 MATERIALS: Note: Budgeted beginning and ending materials inventory were assumed to be the same, so materials purchased equals materials used Materials budgeted to purchase $315,000 Materials actually purchased $321,146 Materials billed to customers $312,325 ACTUAL Ending materials inventory on 12/31/2020 before year-end adjustm Budget ending materials inventory count on 12/31/2020 ACTUAL Actual ending materials inventory count on 12/31/2020 BUDGET $15.17 35% 5.31 $20.48 30,000 30,200 315,000 -321,146 HOUR 23,722 30,000 30,200 Prepare a cash budget for the month of JULY only from the Beginning Cash Balance to the Ending Cash Balance. Do not include minimum cash balance in the original cash budget calculations. After you complete the July cash budget, what would you recommend the minimum cash balance be set at? Show ALL CALCULATIONS to get credit. See the budgeted information by month that is at the end of your information data sheet and the following: JULY 1 balance in Cash =$30,000. Collections: 60% collected in the current month and 40% is collected in the next month. Labor payments: 70% of hourly wages paid in the current month and 30% is paid in the next month. Materials payments: 100% is paid in the next month. Overhead payments: 100% is paid in the current month. Do not include minimum cash balance in the initial cash budget. At the end show what you think the minimum cash balance should be based on this month of information. OPERATING ASSETS BUDGET Budgeted operating assets ACTUAL Actual operating assets BUDGETED INCOME STMT FOR 2020 BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET Total 2020 REVENUE 66,921 LABOR HOURS January-20 1,498 February-20 1,747 March-20 April-20 1,747 78,074 1,747 78,074 78,074 May-20 1,747 78,074 June-20 1,997 89,228 July-20 2,496 111,534 August-20 3,744 167,302 September-20 2,995 133,841 October-20 2,496 November-20 1,498 December-20 1,248 111,534 66,921 55,767 24,960 $1.115,344 $860,000 $860,000 DIRECT LABOR SERVICE SELLING/ADMIN MATERIALS OVERHEAD OVERHEAD 18,900 30,671 35,783 22,050 35,783 22,050 35,783 22,050 22,050 25,200 51,118 31,500 76,677 47,250 61,342 37,800 51,118 31,500 30,671 18,900 25,558 15,750 $511,181 $315,000 35,783 40,894 10,500 12,250 12,250 12,250 12,250 2,208 2,524 3,155 4,732 3,785 17,500 3,155 10,500 1,893 8,750 1,576 $175,000 $31.545 14,000 17,500 1,893 2,208 2,208 2,208 26,250 21,000 PROFIT 4,957 5,783 5,783 5,783 5,783 6,610 8,261 12,393 9,914 8,261 4,957 4,133 $82,618 BUDGET Total hourly labor budgeted per hour BUDGET Total budgeted labor dollars ACTUAL Total dollars paid in labor BILLED Total labor dollars billed out BUDGET Budgeted hours work and bill ACTUAL BILLED LABOR: for 12 hourly employees, including benefits BUDGET ACTUAL BUDGET ACTUAL BILLED BUDGET Budget overhead markup % (multiplied by labor+materials) BUDGET Budgeted total overhead costs ACTUAL Actual total overhead costs BILLED Billed overhead to customers BUDGET Budgeted service overhead costs ACTUAL Actual service overhead costs Actual hours worked Billed hours BUDGET BUDGET OVERHEAD AND OVERHEAD MARKUP: NOTE: SERVICE Overhead is a product cost, SELLING & ADMIN Overhead is a period cost. 25% Budgeted selling & admin overhead costs Actual selling & admin overhead costs REVENUE: Budgeted revenue Collected actual revenue Billed revenue PROFIT: Budget profit markup % (multiplied by labor+materials) Budget profit in dollars ACTUAL Actual profit BILLED Billed profit $20.48 $511,181 $559,897 $488,243 24,960 25,210 23,840 $206,545 $231,346 $168,119 $175,000 $186,540 $31,545 $44,806 $1,115,344 $1,048,744 $1,048,744 10.00% 82,618 (63,645) 80,057 FALL 2021 FINAL PROJECT MAINTENANCE DIVISION of CEDAR PROPERTIES MAINTENANCE ACCOUNTING INFORMATION for 2020: Total markup %-Overhead markup % + Profit markup % Billed to customer-[(hours worked on job x billed labor rate/hour)+ (materials used)] x [Total markup Hours worked (billed) on each job=(Time spent at job site+ Time to and from that location) rounded up to 0.25 of an hour (15 minute increments) BILLED The billed labor cost is: BILLED BILLED BILLED BILLED BILLED BILLED BILLED BUDGET ACTUAL BILLED average hourly wage cost paid to maintenance workers x (52 weeks pald/48 weeks worked to account for paid time off) Hourly rate including paid time off Hourly rate including paid time off Average employer hourly wage costs (employer FICA, unemployment taxes, health Insurance) TOTAL BILLED LABOR COST Budget begin, materials Inventory on 1/1/2020 Actual begin, materials Inventory on 1/1/2020 Materials budgeted to purchase HAVE MERENDA MOTE BUDGET ACTUAL BUDGET ACTUAL Total materials billed out BUT $14.00 1.0833 $15.17 MATERIALS: Note: Budgeted beginning and ending materials inventory were assumed to be the same, so materials purchased equals materials used Materials budgeted to purchase $315,000 Materials actually purchased $321,146 Materials billed to customers $312,325 ACTUAL Ending materials inventory on 12/31/2020 before year-end adjustm Budget ending materials inventory count on 12/31/2020 ACTUAL Actual ending materials inventory count on 12/31/2020 BUDGET $15.17 35% 5.31 $20.48 30,000 30,200 315,000 -321,146 HOUR 23,722 30,000 30,200
Expert Answer:
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
Prepare a cash budget for the Ace Manufacturing Company, indicating receipts and disbursements for May, June, and July. The firm wishes to maintain at all times a minimum cash balance of $20,000....
-
For the month of July Up Payroll Services worked 3,000 hours for Dune Motors, 900 hours for Jake's Charters, and 1,500 hours for Mission Hospital. UP bills clients at $128 an hour; its labor costs...
-
Alberta Limited needs a cash budget for the month of November. The following information is available: a. The cash balance on November 1 is $6,000. b. Sales for October and November are $80,000 and...
-
Discuss the advantages or disadvantages of subsidiary legislations in the Malaysian legal system in dealing with Covid-19 vaccination. Please write down the legal terms for discussion. Please do not...
-
Fitzgerald Inc. issued $750,000 of 8-year, 11% notes payable dated April 1, 2007. Interest on the notes is payable semiannually on April 1 and October 1. The notes were sold on April 1, 2007, to an...
-
Suppose P(A) = .1 and P(B) = .5. a. If P(A | B) = .1, what is P(A B)? b. If P(A | B) = .1, are A and B independent? c. If P(A B) = 0, are A and B independent? d. If P(A B) = .65, are A and B...
-
For each of the following debt scenarios described below, identify the bond type that applies. a. Bonds issued by a public corporation b. Mortgage note issued for commercial property c. Bonds issued...
-
A new airport being built will have three terminals and two baggage pickup areas. An automated baggage delivery system has been designed to transport the baggage from each terminal to the two baggage...
-
Problem #1Golfers, Inc. (GI) manufactures golf-related equipment includinggolf balls. This year??s expected production of golf balls is110,000 packs (each consisting of four golf balls). Cost data 2...
-
Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put...
-
Build a model of the meals on wheels program as described in appendix a ( like difference meal delivery and voluntry connectiivty) the four componenets that shoulld be included in the table is...
-
Help us to complete our marketing plan. Our marketing plan is about MERALCO (Manila Electric Railroad and Light Company). Assume that you are making a marketing plan for MERALCO Company. Please...
-
Every time we have to make a choice we are faced with an opportunity cost. Using an example in your professional life, identify a situation where you were presented with a choice, the opportunity...
-
What are the long - term assets which do not have any physical existence? Explain please.
-
What is the belief that the law should simply reflect the wheel of the majority? Discuss.
-
On July 1, 2020, Mifflin Company borrowed 240,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent...
-
Southern University at New Orleans is planning its annual conference. The conference hotel has quoted the following prices for services:
-
Explain the term "Equivalent Units". Why are they calculated in process costing? [4 Marks] [minimum 350 words]
-
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2015, appears below. December 31 is the companys fiscal...
-
Below are transactions for Wolverine Company during 2015. a. On December 1, 2015, Wolverine receives $4,400 cash from a company that is renting office space from Wolverine. The payment, representing...
-
Justin Time is confident that firms amortize all intangible assets . Is he right? If amortized, are intangible assets always amortized over their legal life? Explain.
-
6. CPA QUESTION Decal Corp. incurred substantial operating losses for the past three years. Unable to meet its current obligations, Decal filed a petition of reorganization under Chapter 11 of the...
-
5. Question: Mark Milbank built custom furniture in Port Chester, New York. His business was unsuccessful, and he repeatedly borrowed money from his wife and her father. He promised that the loans...
-
7. CPA QUESTION A voluntary petition filed under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code: a. Is not available to a corporation unless it has previously filed a petition...
Study smarter with the SolutionInn App