Fabrication Assembly
Department Department Total
Hours required for production:
Bird house 634 951
Bird feeder 1,192 1,043
5.
Indirect factory wages 75,000$
Depreciation of plant and equipment 23,000
6.
19,440$
29,000$
Direct materials:
1,640$
Direct materials purchases
46,704
Cost of direct materials available for use
Finished goods inventory, Dec. 31, 2016
Direct materials inventory, Dec. 31, 2016
Work in process, Dec. 31, 2016
48,344$
Supporting calculations:
Units Cost Total
Finished goods inventory, Dec. 1, 2016:
Bird house 320 $27.00 8,640$
Work in process, Dec. 1, 2016
Direct materials inventory, Dec. 1, 2016
FEATHERED FRIENDS INC.
Cost of Goods Sold Budget
For the Month Ending December 31, 2016
Finished goods inventory, Dec. 1, 2016
FEATHERED FRIENDS INC.
Factory Overhead Cost Budget
For the Month Ending December 31, 2016
FEATHERED FRIENDS INC.
Direct Labor Cost Budget
For the Month Ending December 31, 2016
Bird feeder 250 $41.00 10,250
Total 18,080$
Direct materials inventory, December 1, 2016
7.
Selling expenses:
Telephone expense – selling
Office salaries expense
Depr. expense – office equip.
Telephone expense – administrative
Office supplies expense
Miscellaneous admin. expense
70,000$
18,000
4,000
8.
Revenue from sales 370,000$
Cost of goods sold 203,708
Gross profit 166,292$
Operating expenses:
Selling expenses 92,550$
FEATHERED FRIENDS INC.
Sales salaries expense
Advertising expense
Travel expense – selling
Budgeted Income Statement
For the Month Ending December 31, 2016
FEATHERED FRIENDS INC.
Selling and Administrative Expenses Budget
For the Month Ending December 31, 2016
An asterisk (*) will appear to the right of an incorrect entry.
1.
Unit Sales Unit Selling Total
Product Volume Price Sales
Batting helmet
Football helmet
Total revenue from sales
2.
Batting Football
Helmet Helmet
Expected units to be sold
Total
Total units to be produced
3.
Plastic Foam Lining
(lbs.) (lbs.) Total
Required units for production:
Batting helmet
Football helmet
Total
Total units to be purchased
Unit price
Total direct materials to be purchased
4.
Key Code:
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[Key code here]
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Instructions
Direct Materials Purchases Budget
GOLD MEDAL ATHLETIC CO.
Production Budget
For the Month Ending March 31, 2016
Units
0%
GOLD MEDAL ATHLETIC CO.
Sales Budget
For the Month Ending March 31, 2016
Problem 22-3B
Name:
Section:
Score:
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
Molding Assembly
Department Department Total
Hours required for production:
Batting helmet
Football helmet
Total
Hourly rate
Total direct labor cost
5.
Indirect factory wages
Depreciation of plant and equipment
Power and light
Insurance and property tax
Total
6.
Direct materials:
Direct materials purchases
Cost of direct materials available for use
Cost of direct materials placed in production
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during period
Cost of goods manufactured
Cost of finished goods available for sale
Cost of goods sold
Supporting calculations:
Units Cost Total
Finished goods inventory, March 1, 2016:
Batting helmet
Football helmet
Total
Finished goods inventory, March 31, 2016:
Batting helmet
Football helmet
For the Month Ending March 31, 2016
Direct Labor Cost Budget
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
GOLD MEDAL ATHLETIC CO.
Cost of Goods Sold Budget
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
Factory Overhead Cost Budget
Total
Direct materials inventory, March 1, 2016
Plastic
Foam lining
Total
Direct materials inventory, March 31, 2016
Plastic
Foam lining
Total
7.
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total operating expenses
8.
Revenue from sales
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Other income
Interest revenue
Other expense:
Interest expense
Income before income tax
Income tax expense
Net income
Selling and Administrative Expenses Budget
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
GOLD MEDAL ATHLETIC CO.
Budgeted Income Statement
For the Month Ending March 31, 2016
An asterisk (*) will appear to the right of an incorrect entry.
1.
Unit Sales Unit Selling Total
Product Volume Price Sales
Batting helmet 1,200 $40.00 48,000$
2.
Less estimated inventory, March 1, 2016
Batting Football
Helmet Helmet
Expected units to be sold 1,200 6,500
50 220
3.
Plastic Foam Lining
(lbs.) (lbs.) Total
Required units for production:
Batting helmet 1,452 605
Football helmet 22,680 9,720
50 65
4.
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Instructions
GOLD MEDAL ATHLETIC CO.
Sales Budget
For the Month Ending March 31, 2016
Problem 22-3B
Name:
Solution
Section:
Answers are entered in the cells with gray backgrounds.
ON
GOLD MEDAL ATHLETIC CO.
Direct Materials Purchases Budget
GOLD MEDAL ATHLETIC CO.
Production Budget
For the Month Ending March 31, 2016
Units
Plus desired inventory, March 31, 2016
For the Month Ending March 31, 2016
Plus desired inventory, March 31, 2016
Molding Assembly
Department Department Total
Hours required for production:
Batting helmet 242 605
Football helmet 3,240 11,664
5.
Indirect factory wages 86,000$
Depreciation of plant and equipment 12,000
6.
Direct materials inventory, March 31, 2016
Work in process, March 31, 2016
Finished goods inventory, March 31, 2016
19,480$
15,300$
Direct materials:
860$
Direct materials purchases 185,792
Supporting calculations:
Units Cost Total
Finished goods inventory, March 1, 2016:
Batting helmet 40 $25.00 1,000$
GOLD MEDAL ATHLETIC CO.
Factory Overhead Cost Budget
GOLD MEDAL ATHLETIC CO.
Direct Labor Cost Budget
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
Cost of Goods Sold Budget
For the Month Ending March 31, 2016
Finished goods inventory, March 1, 2016
Work in process, March 1, 2016
For the Month Ending March 31, 2016
Direct materials inventory, March 1, 2016
Football helmet 220 $78.00 17,160
Total 18,410$
Direct materials inventory, March 1, 2016
7.
Selling expenses:
Travel expense – selling
Telephone expense – selling
Office salaries expense
Depr. expense – office equip.
Telephone expense – administrative
Office supplies expense
Miscellaneous admin. expense
184,300$
87,200
8.
Revenue from sales 1,088,000$
Cost of goods sold 533,368
Gross profit 554,632$
Selling and Administrative Expenses Budget
For the Month Ending March 31, 2016
Sales salaries expense
Advertising expense
GOLD MEDAL ATHLETIC CO.
For the Month Ending March 31, 2016
GOLD MEDAL ATHLETIC CO.
Budgeted Income Statement
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Enter a zero in cells you would otherwise leave blank.
1.
May June July
Estimated cash receipts from:
Cash sales
Collections from accounts receivable
Total cash receipts
Estimated cash payments for:
Manufacturing costs
Selling and administrative expenses
Capital expenditures
Other purposes:
Income tax
Dividends
Total cash payments
Cash increase (decrease)
Cash balance at beginning of month
Cash balance at end of month
Minimum cash balance
Excess (deficiency)
Supporting calculations:
Collections of accounts receivable:
Sales on
Account Percentage May June July
March sales
April sales:
Collected in May
Collected in June
May sales:
Collected in June
Collected in July
June sales
Totals
Payments for manufacturing costs:
Costs on
Account Percentage Payments
Paid in May:
Incurred in April
Incurred in May
Total
Paid in June:
Incurred in May
Incurred in June
Total
Paid in July
Incurred in June
Incurred in July
0%
Problem 22-4A
Name:
Section:
Score:
SONOMA HOUSEWARES INC.
Cash Budget
For the Three Months Ending July 31, 2016
Key Code:
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[Key code here]
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Instructions
Total
2.
[Key essay answer here]
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Enter a zero in cells you would otherwise leave blank.
1.
May June July
Estimated cash receipts from:
Cash sales 8,600$ 9,000$ 9,500$
Collections from accounts receivable 68,400 75,780 79,920
Total cash receipts 77,000$ 84,780$ 89,420$
Estimated cash payments for:
Supporting calculations:
Collections of accounts receivable:
Sales on
Account Percentage
May June July
March sales 60,000$ 30% 18,000$ –$ –$
April sales:
Collected in May 72,000 70% 50,400 – –
Payments for manufacturing costs:
Costs on
Account Percentage Payments
Paid in May:
Incurred in April 6,000$
Incurred in May 30,500 80% 24,400
Total 30,400$
Paid in June:
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Problem 22-4A
Name:
Solution
Section:
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
ON
SONOMA HOUSEWARES INC.
Cash Budget
For the Three Months Ending July 31, 2016
2.
The budget indicates that the minimum cash balance will not be maintained in July. This is due to
the capital expenditures requiring significant cash outflows during this month. This situation can be