Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Solutions Manual, Chapter 9 21
Exercise 9-13 (30 minutes)
1. Schedule of expected cash collections:
Month
July
August
September
Quarter
From accounts receivable .
$136,000
$136,000
From July sales:
45% × 210,000 ............
94,500
94,500
55% × 210,000 ............
$115,500
115,500
From August sales:
45% × 230,000 ............
103,500
103,500
55% × 230,000 ............
$126,500
126,500
From September sales:
45% × 220,000 ............
99,000
99,000
Total cash collections .......
$230,500
$219,000
$225,500
$675,000
2. a. Merchandise purchases budget:
July
August
Sept.
Total
Budgeted cost of goods sold ....
$126,000
$138,000
$132,000
$396,000
Add desired ending
merchandise inventory* ........
27,600
26,400
28,800
28,800
Total needs .............................
153,600
164,400
160,800
424,800
Less beginning merchandise
inventory ..............................
62,000
27,600
26,400
62,000
Required purchases .................
$ 91,600
$136,800
$134,400
$362,800
b. Schedule of cash disbursements for purchases:
July
August
Sept.
Total
From accounts payable ..........
$ 71,100
$ 71,100
For July purchases .................
27,480
$ 64,120
91,600
For August purchases ............
41,040
$ 95,760
136,800
For September purchases ......
40,320
40,320
Total cash disbursements .......
$ 98,580
$105,160
$136,080
$339,820
22 Managerial Accounting for Managers, 4th Edition
Exercise 9-13 (continued)
3.
Beech Corporation
Income Statement
For the Quarter Ended September 30
Sales ($210,000 + $230,000 + $220,000) ..
$660,000
Cost of goods sold (Part 2a) .....................
396,000
Gross margin ............................................
264,000
Selling and administrative expenses
($60,000 × 3 months) ...........................
180,000
Net operating income................................
84,000
Interest expense ......................................
0
Net income ..............................................
$ 84,000
4.
Beech Corporation
Balance Sheet
September 30
Assets
Cash ($90,000 + $675,000 – $339,820 – ($55,000 ×
3)) .....................................................................
$260,180
Accounts receivable ($220,000 × 55%) .....................
121,000
Inventory (Part 2a) ...................................................
28,800
Plant and equipment, net ($210,000 – ($5,000 ×3)) ...
195,000
Total assets ..............................................................
$604,980
Liabilities and Stockholders’ Equity
Accounts payable ($134,400 × 70%) .........................
$ 94,080
Common stock (Given) .............................................
327,000
Retained earnings ($99,900 + $84,000) .....................
183,900
Total liabilities and stockholders’ equity ......................
$604,980
Solutions Manual, Chapter 9 23
Exercise 9-14 (30 minutes)
1.
Jessi Corporation
Sales Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Budgeted unit sales .................
11,000
12,000
14,000
13,000
50,000
Selling price per unit ................
× $18.00
× $18.00
× $18.00
× $18.00
× $18.00
Total sales ..............................
$198,000
$216,000
$252,000
$234,000
$900,000
Schedule of Expected Cash Collections
Beginning accounts receivable .
$ 70,200
$ 70,200
1st Quarter sales ......................
128,700
$ 59,400
188,100
2nd Quarter sales .....................
140,400
$ 64,800
205,200
3rd Quarter sales .....................
163,800
$ 75,600
239,400
4th Quarter sales ......................
152,100
152,100
Total cash collections ...............
$198,900
$199,800
$228,600
$227,700
$855,000
24 Managerial Accounting for Managers, 4th Edition
Exercise 9-14 (continued)
2.
Jessi Corporation
Production Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Budgeted unit sales .................
11,000
12,000
14,000
13,000
50,000
Add desired units of ending
finished goods inventory .......
1,800
2,100
1,950
1,850
1,850
Total needs .............................
12,800
14,100
15,950
14,850
51,850
Less units of beginning
finished goods inventory .......
1,650
1,800
2,100
1,950
1,650
Required production in units ....
11,150
12,300
13,850
12,900
50,200
Solutions Manual, Chapter 9 25
Exercise 9-15 (30 minutes)
1.
Hruska Corporation
Direct Labor Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Required production in units ........
12,000
10,000
13,000
14,000
49,000
Direct labor time per unit (hours) .
0.2
0.2
0.2
0.2
0.2
Total direct labor-hours needed....
2,400
2,000
2,600
2,800
9,800
Direct labor cost per hour ............
$12.00
$12.00
$12.00
$12.00
$12.00
Total direct labor cost ..................
$28,800
$24,000
$31,200
$33,600
$117,600
2.
Hruska Corporation
Manufacturing Overhead Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Budgeted direct labor-hours .........
2,400
2,000
2,600
2,800
9,800
Variable manufacturing overhead
rate .........................................
$1.75
$1.75
$1.75
$1.75
$1.75
Variable manufacturing overhead .
$ 4,200
$ 3,500
$ 4,550
$ 4,900
$ 17,150
Fixed manufacturing overhead .....
86,000
86,000
86,000
86,000
344,000
Total manufacturing overhead .....
90,200
89,500
90,550
90,900
361,150
Less depreciation ........................
23,000
23,000
23,000
23,000
92,000
Cash disbursements for
manufacturing overhead ...........
$67,200
$66,500
$67,550
$67,900
$269,150
26 Managerial Accounting for Managers, 4th Edition
Exercise 9-16 (30 minutes)
1.
Zan Corporation
Direct Materials Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Required production in units of
finished goods ..................................
5,000
8,000
7,000
6,000
26,000
Units of raw materials needed per unit
of finished goods ..............................
× 8
× 8
× 8
× 8
× 8
Units of raw materials needed to meet
production ........................................
40,000
64,000
56,000
48,000
208,000
Add desired units of ending raw
materials inventory ...........................
16,000
14,000
12,000
8,000
8,000
Total units of raw materials needed ......
56,000
78,000
68,000
56,000
216,000
Less units of beginning raw materials
inventory ..........................................
6,000
16,000
14,000
12,000
6,000
Units of raw materials to be
purchased ........................................
50,000
62,000
54,000
44,000
210,000
Unit cost of raw materials ....................
× $1.20
× $1.20
× $1.20
× $1.20
× $1.20
Cost of raw materials to be
purchased ........................................
$60,000
$74,400
$64,800
$52,800
$252,000
Solutions Manual, Chapter 9 27
Exercise 9-16 (continued)
Schedule of Expected Cash Disbursements for Materials
Beginning accounts payable .........
$ 2,880
$ 2,880
1st Quarter purchases .................
36,000
$24,000
60,000
2nd Quarter purchases ................
44,640
$29,760
74,400
3rd Quarter purchases .................
38,880
$25,920
64,800
4th Quarter purchases .................
31,680
31,680
Total cash disbursements for
materials ..................................
$38,880
$68,640
$68,640
$57,600
$233,760
2.
Zan Corporation
Direct Labor Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Required production in units ........
5,000
8,000
7,000
6,000
26,000
Direct labor-hours per unit ...........
× 0.20
× 0.20
× 0.20
× 0.20
× 0.20
Total direct labor-hours needed....
1,000
1,600
1,400
1,200
5,200
Direct labor cost per hour ............
× $11.50
× $11.50
× $11.50
× $11.50
× $11.50
Total direct labor cost ..................
$ 11,500
$ 18,400
$ 16,100
$ 13,800
$ 59,800
28 Managerial Accounting for Managers, 4th Edition
Problem 9-17 (45 minutes)
1. Schedule of cash receipts:
Cash sales—May ................................................
$ 60,000
Collections on account receivable:
April 30 balance ..............................................
54,000
May sales (50% × $140,000) ..........................
70,000
Total cash receipts .............................................
$184,000
Schedule of cash payments for purchases:
April 30 accounts payable balance ......................
$ 63,000
May purchases (40% × $120,000) .....................
48,000
Total cash payments ..........................................
$111,000
Minden Company
Cash Budget
For the Month of May
Beginning cash balance .....................................
$ 9,000
Add collections from customers (above) ..............
184,000
Total cash available ............................................
193,000
Less cash disbursements:
Purchase of inventory (above) .........................
111,000
Selling and administrative expenses .................
72,000
Purchases of equipment ..................................
6,500
Total cash disbursements ...................................
189,500
Excess of cash available over disbursements .......
3,500
Financing:
Borrowing—note .............................................
20,000
Repayments—note ..........................................
(14,500)
Interest ..........................................................
(100)
Total financing ...................................................
5,400
Ending cash balance ..........................................
$ 8,900
Solutions Manual, Chapter 9 29
Problem 9-17 (continued)
2.
Minden Company
Budgeted Income Statement
For the Month of May
Sales .......................................................
$200,000
Cost of goods sold:
Beginning inventory ...............................
$ 30,000
Add purchases .......................................
120,000
Goods available for sale ..........................
150,000
Ending inventory ....................................
40,000
Cost of goods sold ....................................
110,000
Gross margin ............................................
90,000
Selling and administrative expenses
($72,000 + $2,000) ...............................
74,000
Net operating income ...............................
16,000
Interest expense ......................................
100
Net income ..............................................
$ 15,900
3.
Minden Company
Budgeted Balance Sheet
May 31
Assets
Cash .........................................................................
$ 8,900
Accounts receivable (50% × $140,000) ......................
70,000
Inventory ..................................................................
40,000
Buildings and equipment, net of depreciation
($207,000 + $6,500 – $2,000) .................................
211,500
Total assets ...............................................................
$330,400
Liabilities and Stockholders’ Equity
Accounts payable (60% × 120,000) ............................
$ 72,000
Note payable .............................................................
20,000
Common stock ..........................................................
180,000
Retained earnings ($42,500 + $15,900) ......................
58,400
Total liabilities and stockholders’ equity .......................
$330,400
30 Managerial Accounting for Managers, 4th Edition
Problem 9-18 (45 minutes)
1. Schedule of cash receipts:
Cash sales—May ................................................
$ 60,000
Collections on account receivable:
April 30 balance ..............................................
54,000
May sales (60% × $160,000) ..........................
96,000
Total cash receipts .............................................
$210,000
Schedule of cash payments for purchases:
April 30 accounts payable balance ......................
$ 63,000
May purchases (50% × $120,000) .....................
60,000
Total cash payments ..........................................
$123,000
Minden Company
Cash Budget
For the Month of May
Beginning cash balance .....................................
$ 9,000
Add collections from customers (above) ..............
210,000
Total cash available ............................................
219,000
Less cash disbursements:
Purchase of inventory (above) .........................
123,000
Selling and administrative expenses .................
72,000
Purchases of equipment ..................................
6,500
Total cash disbursements ...................................
201,500
Excess of cash available over disbursements .......
17,500
Financing:
Borrowing—note .............................................
20,000
Repayments—note ..........................................
(14,500)
Interest ..........................................................
(100)
Total financing ...................................................
5,400
Ending cash balance ..........................................
$ 22,900
