Unit Sales2017: Q1=65,000 Q2=60,000 Q3=75,000 Q4=80,000 Unit sales 2018: Q1=70,000 Quarterly dividends 2017: $300,000 Sales price=$380 Direct
Question:
Unit Sales2017: Q1=65,000 Q2=60,000 Q3=75,000 Q4=80,000 Unit sales 2018: Q1=70,000
Quarterly dividends 2017: $300,000
Sales price=$380 Direct Labor rate $21per hour Variable S&A $8 unit sold
Unit Material Cost $65 Variable OH rate $6 per labor hour
Work out answers please
Sales Budget 2017
Q1 Q2 Q3 Q4 Year
Sales in units
Selling price/units
=Gross Revenue
Then,
Collections of accounts recievable:
75% current quarter sales
25% current quarter sales 3,250,000
Total Cash Collections
Production Budget
Budget unit sales
Add: desired ending inventory of finished goods
Total units needed
Less: Beginning inventory 13,000
=Budgeted Production
Direct Materials Purchased
Q1 Q2 Q3 Q4 Year
Budgeted production
Raw materials needed/unit
=total needed for production
Add: desired raw materials ending inventory $36,000
Total Direct Mat. Needed
Less: begin. Inventory $28,800
Total Materialpurchased
Unit Material Cost
TotalDirect Material Cost
Cash Disbursments for D.M
85%Current Quarter Purchases
15%Current Quarter Purchases $1,500,000
Total Cash Disburse for D.M.
Direct Labor Budget
Budgeted Production
Direct Labor hours/unit 2.5 2.5 2.5 2.5 2.5
Total Direct Hours needed
Hourly wage rate
Budgeted Direct Labor Cost
Factory Overhead Budget
Q1 Q2 Q3 Q4 Year
Budgeted Direct Labor hours:
Variable Overhead Rate per:
=Direct Labor hours
Total Var. Manuf. Overhead
Fixed Manuf. Overhead Depr
Other Fixed overhead Expenses
Total Fixed Overhead
Total Manufacturing Overhead
Less: noncash expense (depreciation)
Cash Disbursement for Factory Overhead
Selling and Administration Budget
Budgeted Units Sold:
Variable Selling & Administration:
Expenses per unit
Total Var. S & A Expenses
Fixed S & A Depreciation Expense
Other Fixed S&A Expense
Total Fixed S&A Expense
Total Selling and Adm. Expense
Less: noncash expense (depreciation)
Cash Disbursement for Selling & Admin Expenses
Schedule1
Cost element Unit Cost Quantity Total
Direct Materials 3
Direct Labor 2.5 Manufacturing Overhead 1
Ending Finished Goods Inventory Budget
Ending Finished Goods Inventory
Cost per unit (schedule 1)
Budgeted ending inventory
Cost of goods sold budget:
Year
Sales Volume
Cost per unit (schedule 1)
Cost of Goods Sold
Cash Budget
Q1 Q2 Q3 Q4 YEAR
Cash balance ending period $1,250,000
Collections of Cash Receivables
Total cash available
Cash disbursement for D.M
Cash disbursement for D.L
Factory Overhead
Selling &Admin expenses
Income Taxes (Are Paid in 4th Quarter)
Net Cash from Operations
Equipment Purchased $3,000,000 $3,000,000
Dividends Paid
Ending Cash Balance:
Balance Sheet
Assets:
Cash
Accounts receivable (Uncollected balance of 4th quarter sales)
Materials inventory
Finished Goods inventory
Total assets
Liabilities& S.E. Equity
Accounts payable ((Unpaid balance of 4th Quarter Materials)
Additional information needed:
The desired ending product inventory is 20%of the next quarter’s budgets sales
3 pounds of direct material is needed to produce each unit of production
The desired ending raw materials inventory is % of raw materials needed for the next quarter’s budgeted production
Factory overhead includes $250,000 per quarter of depreciation and $350,000 per quarter of other fixed overhead
Selling and Administration expenses include $50,000 of depreciation per quarter and $250,000 of the other fixed overhead per quarter
The tax rate is 35%
Expert Answer:
Sales un Units Selling Price per unit Gross Revenue Sales Budget Q1 Q2 Q3 Q4 Year 65000 60000 75000 ... View the full answer
Managerial Accounting
ISBN: 978-0077826482
3rd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
