Name:
Section:
Score: 0%
Key Code:
Total sales
Variable cost:
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HOMEPORT
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31
Exercise 13-1
Instructions
2
Name:
Section:
Score: See student sheet for student’s score
Scoring:
Total sales 400,000$ 600,000$ 800,000$
Variable cost:
Sales commissions 16,000$ 24,000$ 32,000$
Exercise 13-1
SOLUTION
Instructions
ON
For the Month Ending March 31
HOMEPORT
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Flexible Selling and Administrative Expenses Budget
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Name:
Section:
Score: 0%
Key Code:
1.
Unit Sales Unit Selling
Product and Area Volume Price Total Sales
William:
Eastern Domestic
Western Domestic
2.
William Kate
Expected units to be sold
3.
Fabric Wood Filler Springs
(sq. yds.) (lineal ft.) (cu. ft.) (units) Total
Required units for production:
William
Kate
Plus desired inventory,
For the Month Ending March 31
For the Month Ending March 31
ROYAL BRITISH FURNITURE COMPANY
Instructions
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Units
Problem 13-1
Production Budget
ROYAL BRITISH FURNITURE COMPANY
Sales Budget
2
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ROYAL BRITISH FURNITURE COMPANY
Direct Materials Purchases Budget
For the Month Ending March 31
Direct Materials
March 31
Total
4.
Framing Cutting Upholstery
Department Department Department Total
Hours required for production:
William
For the Month Ending March 31
ROYAL BRITISH FURNITURE COMPANY
Direct Labor Cost Budget
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Unit Sales Unit Selling
Product and Area Volume Price Total Sales
William:
Eastern Domestic 7,500 $800 $6,000,000
2.
William Kate
Expected units to be sold 16,000 12,000
3.
Fabric Wood Filler Springs
(sq. yds.) (lineal ft.) (cu. ft.) (units) Total
Required units for production:
Instructions
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Problem 13-1
SOLUTION
ON
For the Month Ending March 31
Units
ROYAL BRITISH FURNITURE COMPANY
Sales Budget
For the Month Ending March 31
ROYAL BRITISH FURNITURE COMPANY
Production Budget
ROYAL BRITISH FURNITURE COMPANY
Direct Materials Purchases Budget
For the Month Ending March 31
Direct Materials
March 31 9,000 20,000 5,000 7,500
Total 106,500 435,200 108,020 364,500
Less estimated inventory,
March 1 5,500 13,700 3,800 3,500
4.
Framing Cutting Upholstery
Department Department Department Total
Hours required for production:
William 41,250 16,500 49,500
ROYAL BRITISH FURNITURE COMPANY
Direct Labor Cost Budget
For the Month Ending March 31
Name:
Section:
Score: 0%
Key Code:
a.
January February March
Units of production
b. January February March
Total actual cost
Comment:
Exercise 13-2
Instructions
A red asterisk (*) will appear in the row immediately to the right of an incorrect answer.
PAULK COMPANY—MACHINING DEPARTMENT
Flexible Production Budget
2
For the Three Months Ending March 31
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Name:
Section:
Score: See student sheet for student’s score
Scoring:
a.
January February March
Units of production 50,000 60,000 75,000
b. January February March
Total actual cost 1,854,000$ 2,236,800$ 2,798,000$
Comment:
Exercise 13-2
SOLUTION
Instructions
Flexible Production Budget
A red asterisk (*) will appear in the row immediately to the right of an incorrect answer.
For the Three Months Ending March 31
The Machining Department is spending more than expected, and it’s getting worse each month.
PAULK COMPANY—MACHINING DEPARTMENT
ON
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Name:
Section:
Score: 0%
Key Code:
1.
Unit Sales Unit Selling
Volume Price Total Sales
2.
Bicycle Motorcycle
Helmet Helmet
Expected units to be sold
3.
Plastic Foam Lining Total
Required units for production:
Bicycle helmet
Motorcycle helmet
Problem 13-2
Instructions
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2
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For the Month Ending May 31
JUPITER HELMETS INC.
JUPITER HELMETS INC.
For the Month Ending May 31
Sales Budget
Production Budget
For the Month Ending May 31
JUPITER HELMETS INC.
Direct Materials Purchases Budget
Units
4.
Molding Assembly
Department Department Total
Hours required for production:
Bicycle helmet
5.
Indirect factory wages
6.
Finished goods inventory, May 1
Work in process inventory, May 1
Direct materials:
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during the period
7.
JUPITER HELMETS INC.
Direct Labor Cost Budget
For the Month Ending May 31
JUPITER HELMETS INC.
For the Month Ending May 31
JUPITER HELMETS INC.
Factory Overhead Cost Budget
JUPITER HELMETS INC.
Selling and Administrative Expenses Budget
Cost of Goods Sold Budget
For the Month Ending May 31
Selling expenses:
Sales salaries expense
Advertising expense
Travel expense – selling
Miscellaneous expense – selling
8.
Revenue from sales
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses
Administrative expenses
JUPITER HELMETS INC.
Budgeted Income Statement
For the Month Ending May 31
For the Month Ending May 31
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Unit Sales Unit Selling
Volume Price Total Sales
Bicycle helmet 7,500 $24.00 180,000$
2.
Bicycle Motorcycle
Helmet Helmet
Expected units to be sold 7,500 5,000
3.
Plastic Foam Lining Total
Required units for production:
Bicycle helmet 6,930 1,540
Motorcycle helmet 18,200 7,280
Plus desired inventory,
JUPITER HELMETS INC.
Direct Materials Purchases Budget
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JUPITER HELMETS INC.
Units
JUPITER HELMETS INC.
Production Budget
For the Month Ending May 31
Problem 13-2
SOLUTION
Instructions
Sales Budget
For the Month Ending May 31
ON
For the Month Ending May 31
4.
Molding Assembly
Department Department Total
Hours required for production:
Bicycle helmet 2,310 770
5.
Indirect factory wages $125,000
Depreciation of plant and equipment 45,000
6.
Finished goods inventory, May 1 12,000$
Work in process inventory, May 1 4,200$
Direct materials:
Direct materials inventory, May 1 6,980$
Direct materials purchases 121,050
7.
JUPITER HELMETS INC.
Factory Overhead Cost Budget
For the Month Ending May 31
JUPITER HELMETS INC.
Direct Labor Cost Budget
For the Month Ending May 31
JUPITER HELMETS INC.
Cost of Goods Sold Budget
For the Month Ending May 31
JUPITER HELMETS INC.
Selling and Administrative Expenses Budget
Selling expenses:
Sales salaries expense $175,000
Advertising expense 120,000
Travel expense – selling 50,000
Miscellaneous expense – selling 5,000
8.
Revenue from sales 1,055,000$
Cost of goods sold 412,460
Gross profit 642,540$
Operating expenses:
Selling expenses 350,000$
Budgeted Income Statement
For the Month Ending May 31
For the Month Ending May 31
JUPITER HELMETS INC.
Name:
Section:
Score: 0%
Key Code:
Units of production
Variable cost:
Direct labor
(Assumed Data)
Exercise 13-3
Instructions
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STEELCASE INC.—FABRICATION DEPARTMENT
Flexible Production Budget
2
May
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Name:
Section:
Score: See student sheet for student’s score
Scoring:
Units of production 20,000 25,000 30,000
Variable cost:
Exercise 13-3
Instructions
Flexible Production Budget
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May
(Assumed Data)
STEELCASE INC.—FABRICATION DEPARTMENT
ON
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Name:
Section:
Score: 22%
*Since some answer boxes are correct when left blank, the beginning score is greater than 0%.
Key Code:
1.
January February March
Estimated cash receipts from:
Cash sales
Collection of accounts receivable
Other purposes:
Note payable (including interest)
Income tax
Dividends
Total cash payments
Collection of accounts receivable: January February March
November sales
Payments for manufacturing costs: January February March
Payment of accounts payable,
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SHOE MART INC.
Cash Budget
For the Three Months Ending March 31
2
Problem 13-3
Instructions
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2.
Name:
Section:
Score: See student sheet for student’s score
Scoring:
*Since some answer boxes are correct when left blank, the beginning score is greater than 0%.
1.
January February March
Estimated cash receipts from:
Cash sales 90,000$ 110,000$ 140,000$
Estimated cash payments for:
Manufacturing costs 216,000$ 283,000$ 371,000$
Selling and administrative expenses 100,000 140,000 150,000
Capital expenditures – – 45,000
Other purposes:
Note payable (including interest) – – 51,000
Collection of accounts receivable: January February March
November sales 50,000$ –$ –$
Payments for manufacturing costs: January February March
Payment of accounts payable,
Cash Budget
For the Three Months Ending March 31
ON
Problem 13-3
SOLUTION
Instructions
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SHOE MART INC.
2.
Financing is required. Due to capital expenditures and the note repayment, the minimum cash balance will not be
maintained in March.