Assumptions: 1. Krusty Krab sells Krabby Patty only. The selling price of Krabby Patty is $4.50....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648c2f12f5c7_5286648c2f0b082e.jpg)
Transcribed Image Text:
Assumptions: 1. Krusty Krab sells Krabby Patty only. The selling price of Krabby Patty is $4.50. 2. Krusty Krab has 153 customers per day on average. Each customer purchases one Krabby Patty per visit. Krusty Krab has Food Truck Festival every June which increases its regular sales by 50% per day. 3. 90% of sales are paid by cash. 10% is collected in the month following sale. The March 31" accounts receivable balance of $600 will be collected in full in April. 4. Krusty Krab stores frozen Krabby Patty so they can sell them during the busy days in the following month. In general, Mr. Krab wants ending inventory of Krabby Patty to be equal to 10% of the following month's budgeted sales in units. On March 31", 474 units of Krabby Patty were on hand. 5. At Krusty Krab, two pounds of material are required per unit of product. Mr. Krab wants materials on hand at the end of each month equal to 5% of the following month's production. On March 31, 229.5 pounds of material are on hand. Material cost is $0.10 per pound. One-half of a month's purchases is paid for in the month of purchase; the other half is paid in the following month. The March 31 accounts payable balance is $900. 6. At Krusty Krab, each Krabby Patty requires 0.025 hours (1.5 minutes) of direct labor. Mr. Krab pays Sponge Bob at the rate of $12 per hour. 7. At Krusty Krab, the variable manufacturing overhead rate is $0.1 per Krabby Patty. Fixed manufacturing overhead is $2,703 per month, which includes $500 of noncash costs (primarily depreciation of plant assets). 8. At Krusty Krab, the variable selling and administrative expenses are $0.05 per unit sold. Fixed selling and administrative expenses are $3,500 per month (including the salary to the Cashier 82 hours per week at the rate of $12 per hour). The fixed selling and administrative expenses include $1,000 in costs - primarily depreciation - that are not cash outflows of the current month. 9. Krusty Krab purchases a new equipment in May and pays $10,000. Krusty Krab also pays a cash dividend of 5,000 in April. 10. Krusty Krab maintains a minimum cash balance of $50,000. It maintains a 12% open line of credit for $75,000. It borrows on the first day of the month and repays loans on the last day of the month. 11. Krusty Krab has an April 1 cash balance of $40,000. On April 1, retained earnings has a balance of $94,745. On April 1, additional Budgeted Balance Sheet Information: Krusty Krab reported the following account balances prior to preparing its budgeted financial statements: - - Land - $10,000 Equipment - $20,000 Building - $50,000 Common stock $30,000 Assumptions: 1. Krusty Krab sells Krabby Patty only. The selling price of Krabby Patty is $4.50. 2. Krusty Krab has 153 customers per day on average. Each customer purchases one Krabby Patty per visit. Krusty Krab has Food Truck Festival every June which increases its regular sales by 50% per day. 3. 90% of sales are paid by cash. 10% is collected in the month following sale. The March 31" accounts receivable balance of $600 will be collected in full in April. 4. Krusty Krab stores frozen Krabby Patty so they can sell them during the busy days in the following month. In general, Mr. Krab wants ending inventory of Krabby Patty to be equal to 10% of the following month's budgeted sales in units. On March 31", 474 units of Krabby Patty were on hand. 5. At Krusty Krab, two pounds of material are required per unit of product. Mr. Krab wants materials on hand at the end of each month equal to 5% of the following month's production. On March 31, 229.5 pounds of material are on hand. Material cost is $0.10 per pound. One-half of a month's purchases is paid for in the month of purchase; the other half is paid in the following month. The March 31 accounts payable balance is $900. 6. At Krusty Krab, each Krabby Patty requires 0.025 hours (1.5 minutes) of direct labor. Mr. Krab pays Sponge Bob at the rate of $12 per hour. 7. At Krusty Krab, the variable manufacturing overhead rate is $0.1 per Krabby Patty. Fixed manufacturing overhead is $2,703 per month, which includes $500 of noncash costs (primarily depreciation of plant assets). 8. At Krusty Krab, the variable selling and administrative expenses are $0.05 per unit sold. Fixed selling and administrative expenses are $3,500 per month (including the salary to the Cashier 82 hours per week at the rate of $12 per hour). The fixed selling and administrative expenses include $1,000 in costs - primarily depreciation - that are not cash outflows of the current month. 9. Krusty Krab purchases a new equipment in May and pays $10,000. Krusty Krab also pays a cash dividend of 5,000 in April. 10. Krusty Krab maintains a minimum cash balance of $50,000. It maintains a 12% open line of credit for $75,000. It borrows on the first day of the month and repays loans on the last day of the month. 11. Krusty Krab has an April 1 cash balance of $40,000. On April 1, retained earnings has a balance of $94,745. On April 1, additional Budgeted Balance Sheet Information: Krusty Krab reported the following account balances prior to preparing its budgeted financial statements: - - Land - $10,000 Equipment - $20,000 Building - $50,000 Common stock $30,000
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Record the following transactions in Journal. Post them into ledger and prepare a Trial Balance. Jan 1; Jan 2; Jan 10 Jan 15 Jan 20 Jan 28 Jan 31 Started business with cash Rs. 80,000 Bought...
-
Jaria Stevens works in both the jewelry department and the hosiery department of a retail store. Stevens assists customers in both departments and arranges and stocks merchandise in both departments....
-
Suppose that X1, X2, and X3 form a random sample of three observations from a distribution having the following p.d.f.: Determine the p.d.f. of the range of the sample. -a 2x 0 for 0
-
Your company continues to have the stinky job of processing halibut livers detailed in Problem 14.E1. Halibut arrive in batches on the fishing boats, so you decide to evaluate a continuous solvent...
-
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: The income statement for the year ended December 31, 20Y3, is as follows: Additional data obtained from an...
-
La clave para atraer usuarios potenciales de un producto o servicio, o incluso posiblemente no usuarios, es _ _ _ _ _ _ _ _ a . aumentar la tasa de uso de los usuarios existentes b . Ofrecer...
-
1. For each pair of vectors a and b , find Proj- b and verify that a b proj b) l. - a 1. %3 (-1, 2), 3 (1, 1); - (2, 1, 1), 3. 3 (-1, 2, 2), 3 (1, 0, - 1); 4. 3 (0, 1, 1, 1), %3 (1, 1, -...
-
Managerial accounting is a veritable tool for organizational decision making and can be used to solve practical problems. How can managerial accounting help solve organizational issues using...
-
A train with a maximum speed of 105 km/h has an acceleration rate of 0.50 m/s 2 and a deceleration rate of 0.61 m/s 2 . If the train takes 50 s to slow down from maximum speed to a complete stop, how...
-
The first payment of $9,000 becomes due on the capital lease for Pilates equipment. Of the $9,000 payment, $8,000 is being applied to principal and $1,000 is being applied to interest. Prepare the...
-
1 5 . A cone of base 5 0 mm diameter & axis 6 0 mm long rests with its base on HP . It is cut by a section plane perpendicular to VP so that the true shape of the section is a parabola of maximum...
-
explain the concept of price discretion, and its relationship with cost information and short-term pricing decisions. Using a practical, explain the difference in the price discretion between a room...
-
Antique Furnishings Ltd. is a Yuen Long based manufacturer making three unique wood products: bed-frames, coffee tables, footstools. These products are completely carved by hand by skilled...
-
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
-
If the price of zucchini increases, causing the demand for yellow squash to rise, what do we call the relationship between zucchini and yellow squash?
-
The price elasticity of demand is defined as the percentage change in _________ divided by the percentage change in _________.
-
The price elasticity of demand measures the responsiveness of quantity _________ to a change in price.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App