Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter...
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Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. $ 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. $ 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. $ 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. $ 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $ Tuscan Toy Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter $ Budgeted sets to be produced VOH cost per set 2.00 $ 2.00 $ Budgeted VOH 3,390 $ 3,690 $ Budgeted FOH Depreciation 5,000 5,000 3,376 3,376 Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 289 339 369 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. 1,445 2.00 $ 2,890 $ 5,000 3,376 Third Quarter 1,695 1,845 Fourth Quarter 1,995 Total 6,980 2.00 $ 2.00 3,990 $ 13,960 5,000 3,376 399 1,396 Clear All (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 50 sets per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. Sets are budgeted to sell for $90 per set. b. Finished Goods Inventory on December 31, 2018, consists of 550 sets at $35 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 3,300 pounds. Direct materials requirement is 6 pounds per set. The cost is 1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 3,300 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 10 per hour. g. Variable manufacturing overhead is $2.00 per set. h. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $6,455 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Tricia desires to maintain a minimum cash balance of $60,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Tricia Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Current Liabilities: Liabilities Stockholders' Equity $ Accounts Payable Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 18,000 3,300 19,250 188,000 (39,000) 180,000 53,550 S $ 100,550 149,000 249,550 16,000 233,550 249,550 Budgeted sets to be sold Sales price per unit Total sales Tuscan Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,500 1,800 Fourth Quarter 1,950 Total 1,650 6,900 $ 90 $ 90 $ 90 $ 90 $ 90 $ 135,000 $ 148,500 $ 162,000 $ 175,500 $ 621,000 Tuscan Toy Company Production Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted sets to be sold Plus: Desired sets in ending inventory Total sets needed Less: Sets in beginning inventory Budgeted sets to be produced 1,500 495 1,995 550 1,445 1,650 540 2,190 495 1,695 Third Quarter 1,800 585 2,385 540 1,845 Fourth Quarter 1,950 630 2,580 585 1,995 Total 6,900 630 7,530 550 6.980 Tuscan Toy Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1 $ Third Quarter 1,695 10,170 1,107 11,277 1,017 Fourth Quarter Budgeted sets to be produced 1,445 1,845 1.995 6,980 Direct materials per set (pounds) 6 6 6 6 Direct materials needed for production 8,670 11,070 11,970 41,880 Plus: Desired direct materials in ending inventory 1,017 1.197 3,300 3.300 Total direct materials needed 9,687 12,267 15,270 45,180 3,300 1,107 1,197 3.300 Less: Direct materials in beginning inventory 6,387 10,260 11,160 14.073 41,880 Budgeted purchases of direct materials 1$ 1$ 1$ X Direct materials cost per pound 6,387 41.880 10,260 $ 11,160 S 14,073 $ Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole num Total Tuscan Toy Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,445 0.20 289 1,695 0.20 339 1,845 0.20 369 Fourth Quarter 10 $ 1,995 0.20 399 Budgeted sets to be produced 6,980 Direct labor hours per unit 0.20 Direct labor hours needed for production 1,396 10 $ 10 $ 10 Direct labor cost per hour 2,890 $ 3,390 $ 3,690 3.990 13.960 Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing o Total 10 $
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Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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