Woodward Benches Limited manufactures just one product: Park benches made exclusively from cedar lumber. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Woodward Benches Limited manufactures just one product: Park benches made exclusively from cedar lumber. The company prepares complete monthly Budgets at the beginning of each year. The company year-end is December 31st 2020. For the month of January 2021 the company has budgeted $100,000 in Sales Revenue (1,000 Benches to be sold for $100 each). It takes 20 linear feet of 1x8 cedar to manufacture 1 bench. It is expected that 1x8 cedar will cost $5.00 per linear ft in January of 2021. There were 180 benches in Finished Goods Inventory on hand at December 31st. There was 600 linear ft of cedar in Direct Materials Inventory at December 31st 2020. i) If the Company wishes to always have 250 benches in Finished Goods Inventory at the end of each month in 2021, how many units of production will they budget to manufacture in their January 2021 Production Budget? ii) If the Company wishes to always have 500 linear ft of cedar in Direct Materials Inventory at the end of each month in 2021, how much cedar will they have to purchase (in dollars) in January 2021? iii) Assuming there are no Cash, Accounts Recievable or Accounts Payable balances at December 31st 2020, what will be the net cash balance at January 31st if 60% of Januray sales are made on credit and remaining customers paid in cash in the same month AND 80% of Direct Material purchases in January are made on credit and will not be paid for until the following month. Remainder was paid for in cash in January 2021 iv) What is the Budgeted profit on the Income Statement if the standard cost of a unit of Inventory is $40 in 2021 and the only other Company expenses in the month of Janaury 2021 total $35,000? v) Explain how Standard Costs and the Master Budget are related. Woodward Benches Limited manufactures just one product: Park benches made exclusively from cedar lumber. The company prepares complete monthly Budgets at the beginning of each year. The company year-end is December 31st 2020. For the month of January 2021 the company has budgeted $100,000 in Sales Revenue (1,000 Benches to be sold for $100 each). It takes 20 linear feet of 1x8 cedar to manufacture 1 bench. It is expected that 1x8 cedar will cost $5.00 per linear ft in January of 2021. There were 180 benches in Finished Goods Inventory on hand at December 31st. There was 600 linear ft of cedar in Direct Materials Inventory at December 31st 2020. i) If the Company wishes to always have 250 benches in Finished Goods Inventory at the end of each month in 2021, how many units of production will they budget to manufacture in their January 2021 Production Budget? ii) If the Company wishes to always have 500 linear ft of cedar in Direct Materials Inventory at the end of each month in 2021, how much cedar will they have to purchase (in dollars) in January 2021? iii) Assuming there are no Cash, Accounts Recievable or Accounts Payable balances at December 31st 2020, what will be the net cash balance at January 31st if 60% of Januray sales are made on credit and remaining customers paid in cash in the same month AND 80% of Direct Material purchases in January are made on credit and will not be paid for until the following month. Remainder was paid for in cash in January 2021 iv) What is the Budgeted profit on the Income Statement if the standard cost of a unit of Inventory is $40 in 2021 and the only other Company expenses in the month of Janaury 2021 total $35,000? v) Explain how Standard Costs and the Master Budget are related.
Expert Answer:
Answer rating: 100% (QA)
5 A financial plan normally alludes to an offices or an organizations projected incomes expenses o... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
Students also viewed these finance questions
-
Benet Company has budgeted the following unit sales: 2017 2016 Quarter Units Quarter Units 1 105,000 1 90,000 2 60,000 3 75,000 4 120,000 The finished goods inventory on hand on December 31, 2015 was...
-
Efficiency wages are: A) non existent B) wages higher than equilibrium wages C) lower than equilibrium wages D) equal to equilibrium wages
-
If you save $25 at the beginning of each month, and interest is 4% compounded quarterly, how much will you accumulate in 30 years?
-
A firm pays a $1.50 dividend at the end of year one (0). has a stock price of $141 (Pa), and a constant growth rate (g) of 9 percent. a. Compute the required rate of return (ke). (Do not round...
-
Let c be the mean number of calories that a person consumes daily, and let w be the persons mean weight (in pounds).
-
Rachelle Razer has taken a job as production superintendent in a plant that makes, among other products, jewelry cases. She is trying to determine how many cases to produce on each production run...
-
Reconsider the data from Problem 51. What is the capital recovery cost of Alternative 3 for a 6-year life? Data from problem 51 Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively....
-
Sebolt Wire Company heats copper ingots to very high temperatures by placing the ingots in a large heat coil. The heated ingots are then run through a shaping machine that shapes the soft ingot into...
-
Fill in the amounts (numbers) for each asset, liability, and equity category. Be sure to enter commas as needed in the numbers. For each entry labeled "total," you will need to do the math (addition)...
-
Based on the three tables and the attributes below, answer the question for Requirement A and write SQL commands for Requirements B to E to retrieve the data from the database. Salesltems Sales...
-
On March 1, Job 10 had a beginning balance of $500. During March, direct materials of $800 and direct labor of $300 were added to the job. Overhead is applied to production at a rate of 40% of direct...
-
Youare required to develop a small system to perform some tasks on product information using the concept of array of object. The program consists of three classes namelyProduct,ProductOperation...
-
OVERVIEW: This assignment requires you to reflect on the goals you set at the start of the course, share with the class the progress you made, and identify future related plans. SPECIFIC...
-
Explain two pieces of evidence in the Target earnings announcement that indicates the company has a weaker balance sheet as of January.
-
A 1000 benefit will be realized from a project each year for many, many years into the future. You use 5% as the value of money. What amount should you use for the present value of this cash flow?
-
Case study from one specific practical perspective on team facilitation Topic': The Fighters and Side trackers The Fighters Two or more persons have personality conflicts. Can divide the group into...
-
1.Suppose the CPI in year 10 is 150 and the CPI in year 1 is 110. If a person earned $100,000 in year 1, this would be equivalent to in year 10. Oa. $144,444 Ob. $136,363 Oc. $222, 322 Od. $127,532
-
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
-
Write a brief memorandum to your instructor describing CVss operating cycle and financing period. To do this, refer to the CVS annual report in the Supplement to Chapter 16 and to Exhibits 5 and 8....
-
On July 1, 2014, Acting Company established an imprest (petty cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund. On July 31, the petty cash fund...
-
Use the accounting equation to answer each question that follows. 1. Ambria Companys assets are $240,000, and its liabilities are $90,000. What is the amount of its owners equity? 2. Dao Companys...
-
Rewrite the Gross-Pitaevskii equation and the mean field energy, see equations (11.2.21) and (11.2.23), for an isotropic harmonic oscillator trap with frequency \(\omega_{0}\) in a dimensionless form...
-
The energy levels of an imperfect Fermi gas in the presence of an external magnetic field \(\boldsymbol{H}\), to the first order in \(a\), may be written as...
-
Solve the Gross-Pitaevskii equation (11.2.23) in a harmonic trap for the case when the scattering length \(a\) is zero. Show that this reproduces the properties of the ground state of the...
Study smarter with the SolutionInn App