Exercise 7-5 (15 minutes)
1.
Yuvwell Corporation
Manufacturing Overhead Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Budgeted direct labor-hours …………………………..
8,000
8,200
8,500
7,800
32,500
Variable manufacturing overhead rate ……………..
Variable manufacturing overhead ……………………
Fixed manufacturing overhead ……………………….
Total manufacturing overhead ……………………….
Less depreciation ………………………………………..
Cash disbursements for manufacturing overhead .
2.
Total budgeted manufacturing overhead for the year (a) …
$257,000
Budgeted direct labor-hours for the year (b) …………………
Predetermined overhead rate for the year (a) ÷ (b) ……….
Exercise 7-7 (15 minutes)
Garden Depot
Cash Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Beginning cash balance .
$ 20,000
$ 15,000
$ 35,500
$ 25,500
$ 20,000
Total cash receipts ……..
180,000
330,000
210,000
230,000
950,000
Total cash available ……
260,000
Financing:
(4,500)
Total financing …………..
(4,500)
Ending cash balance …..
$ 15,000
Exercise 7-8 (10 minutes)
Gig Harbor Boating
Budgeted Income Statement
Sales (400 units × $1,950 per unit) ………………….
$780,000
Selling and administrative expenses* ………………..
Net operating income …………………………………….
Interest expense …………………………………………..
Net income ………………………………………………….
Exercise 7-9 (15 minutes)
Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash* …………………………………………
$10,700
Accounts receivable ……………………….
8,100
Total current assets …………………………
Plant and equipment:
Equipment …………………………………..
Accumulated depreciation ……………….
Plant and equipment, net ………………….
Total assets ……………………………………
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable ………………………….
$ 1,800
Stockholders’ equity:
Retained earnings# ……………………….
Total stockholders’ equity ………………….
38,200
Total liabilities and stockholders’ equity ..
#
Retained earnings, beginning balance ..
Add net income …………………………….
Deduct dividends …………………………..
Retained earnings, ending balance ……
Exercise 7-12 (30 minutes)
1. Schedule of expected cash collections:
Month
July
August
Sept.
Quarter
From accounts receivable .
$136,000
$136,000
From July sales:
From August sales:
From September sales:
Total cash collections …….
2. a. Merchandise purchases budget:
July
August
Sept.
Total
Budgeted cost of goods sold
(60% of sales)………………….
$126,000
$138,000
$144,000
$408,000
Total needs ………………………..
Required purchases ……………..
Add desired ending
b. Schedule of cash disbursements for purchases:
July
August
Sept.
Total
From accounts payable ……….
$ 71,100
$ 71,100
For July purchases ……………..
For August purchases …………
For September purchases ……
Total cash disbursements …….
Exercise 7-12 (continued)
3.
Beech Corporation
Income Statement
For the Quarter Ended September 30
Sales ($210,000 + $230,000 + $240,000) ..
$680,000
Net operating income…………………………..
4.
Beech Corporation
Balance Sheet
September 30
Assets
Cash ($90,000 + $660,000 – $373,900 – ($55,000 ×
3)) ……………………………………………………………
$211,100
Accounts receivable ($240,000 × 65%) …………………
156,000
Inventory (Part 2a) ……………………………………………
Accounts payable ($144,000 × 60%) …………………….
Common stock (Given) ………………………………………
Retained earnings ($99,900 + $92,000) …………………
1.
Jessi Corporation
Sales Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Budgeted unit sales ……………..
11,000
16,000
14,000
13,000
54,000
Beginning accounts receivable .
Exercise 7-14 (continued)
2.
Jessi Corporation
Production Budget
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Year
Budgeted unit sales ……………..
11,000
16,000
14,000
13,000
54,000
Total needs ………………………..
Exercise 7-16 (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
7,500
7,000
6,000
25,500
Units of raw materials needed per unit
of finished goods …………………………
× 8
× 8
× 8
× 8
× 8
Units of raw materials needed to meet
Add desired units of ending raw
materials inventory ………………………
inventory ……………………………………
Units of raw materials to be
Cost of raw materials to be
$52,800
Exercise 7-16 (continued)
Schedule of Expected Cash Disbursements for Materials
Beginning accounts payable ………
$ 2,880
$ 2,880
1st Quarter purchases ……………..
35,280
$23,520
58,800
2nd Quarter purchases …………….
70,800
3rd Quarter purchases ……………..
4th Quarter purchases ……………..
31,680
31,680
$66,000
2.
Zan Corporation
Direct Labor Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Required production in units ……..
5,000
7,500
7,000
6,000
25,500
Direct labor-hours per unit ………..
Total direct labor-hours needed….
Direct labor cost per hour …………
Total direct labor cost ………………