Chapter 23 Homework Green Landscaping Inc Schedule Expected Payments For

CHAPTER 23

Budgetary Planning

ASSIGNMENT CLASSIFICATION TABLE

Learning Objectives

Questions

Brief

Exercises

Do It!

Exercises

A

Problems

1. State the essentials of effective

budgeting and the components of

the master budget.

1, 2, 3, 4, 5,

6, 7, 8, 9,

10

1

2. Prepare budgets for sales,

production, and direct materials.

11, 12, 13

2, 3, 4,

2

2, 3, 4, 5, 6,

7, 8, 10

1A, 2A, 3A

expenses, and a budgeted

income statement.

4. Prepare a cash budget and a

budgeted balance sheet.

19, 20

9

4

14, 15, 16,

17, 18, 19

4A, 6A

5. Apply budgeting principles to

nonmanufacturing companies.

21, 22

5

19, 20, 21

ASSIGNMENT CHARACTERISTICS TABLE

Problem

Number

Description

Difficulty

Level

Time

Allotted (min.)

1A

Prepare budgeted income statement and supporting

budgets.

Simple

30–40

2A

Prepare sales, production, direct materials, direct labor,

and income statement budgets.

Simple

40–50

3A

Prepare sales and production budgets and compute cost

per unit under two plans.

30–40

Prepare cash budget for two months.

merchandiser.

retained earnings and balance sheet.

BLOOM’ S TAXONOMY TABLE

Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End–of-Chapter Exercises and Problems

Learning Objective

Knowledge

Comprehension

Application

Analysis

Synthesis

Evaluation

1. State the essentials of

effective budgeting and

the components of the

master budget.

DI23-1

Q23-1

Q23-2

Q23-3

Q23-4

Q23-5

Q23-6

Q23-7

Q23-8

Q23-9

Q23–10

E23-1

BE23-1

3. Prepare budgets for direct

labor, manufacturing

overhead, and selling and

administrative expenses,

and a budgeted income

statement.

Q23–14

Q23–15

Q23–16

Q23–18

Q23–17

BE23-5

BE23-6

BE23-7

BE23-8

DI23-3

E23-9

E23–10

E23–11

E23–12

E23–13

P23–1A

P23-2A

P23–6A

a budgeted balance sheet.

BE23-9

DI23-4

E23–14

E23–17

E23–18

E23–19

principles to

companies.

Q23–21

BYP23-1

BYP23-5

BYP23-6

BYP23-7

BE23-4

DI23-2

E23-6

E23-7

ANSWERS TO QUESTIONS

1. (a) A budget is a formal written statement of management’s plans for a specified future time period,

5. The budget period should be long enough to provide an attainable goal under normal business

Questions Chapter 23 (Continued)

20. Cash collections are:

SOLUTIONS TO BRIEF EXERCISES

BRIEF EXERCISE 23-1

BRIEF EXERCISE 23-2

PAIGE COMPANY

Sales Budget

For the Year Ending December 31, 2017

BRIEF EXERCISE 23-3

PAIGE COMPANY

Production Budget

For the Six Months Ending June 30, 2017

BRIEF EXERCISE 23-4

PERINE COMPANY

Direct Materials Budget

For the Month Ending January 31, 2017

BRIEF EXERCISE 23-5

GUNDY COMPANY

Direct Labor Budget

For the Six Months Ending June 30, 2017

BRIEF EXERCISE 23-6

ROCHE INC.

Manufacturing Overhead Budget

For the Year Ending December 31, 2017

BRIEF EXERCISE 23-7

ELBERT COMPANY

Selling and Administrative Expense Budget

For the Year Ending December 31, 2017

BRIEF EXERCISE 23-8

NORTH COMPANY

Budgeted Income Statement

For the Year Ending December 31, 2017

BRIEF EXERCISE 23-9

BRIEF EXERCISE 23–10

SOLUTIONS FOR DO IT! REVIEW EXERCISES

DO IT! 23-1

DO IT! 23-2

PARGO COMPANY

Sales Budget

For the Year Ending December 31, 2017

DO IT! 23-2 (Continued)

PARGO COMPANY

Production Budget

For the Year Ending December 31, 2017

PARGO COMPANY

Direct Materials Budget

For the Year Ending December 31, 2017

DO IT! 23-3

(b) PARGO COMPANY

Budgeted Income Statement

For the Year Ending December 31, 2017

DO IT! 23-4

BATISTA COMPANY

Cash Budget

April

DO IT! 23-5

Zeller COMPANY

Merchandise Purchases Budget

For the Six Months Ending June 30, 2017

SOLUTIONS TO EXERCISES

EXERCISE 23-1

MEMO

To Jim Dixon

From: Student

Re: Budgeting

I am glad Trusler Company is considering preparing a formal budget. There are

EXERCISE 23-2

EDINGTON ELECTRONICS INC.

Sales Budget

For the Six Months Ending June 30, 2017

THOME AND CREDE, CPAs

Sales Revenue Budget

For the Year Ending December 31, 2017

EXERCISE 23-3

EXERCISE 23-4

TURNEY COMPANY

Production Budget

For the Year Ending December 31, 2017

EXERCISE 23-5

DEWITT INDUSTRIES

Direct Materials Purchases Budget

For the Quarter Ending March 31, 2017

EXERCISE 23-6

(a) HARDIN COMPANY

Production Budget

For the Six Months Ending June 30, 2017

EXERCISE 23-6 (Continued)

(b) HARDIN COMPANY

Direct Materials Budget

For the Six Months Ending June 30, 2017

EXERCISE 23-7

EXERCISE 23-8

(a) FUQUA COMPANY

Production Budget

For the Two Months Ending February 28, 2017

(b) FUQUA COMPANY

Direct Materials Budget

For the Month Ending January 31, 2017

EXERCISE 23-9

RODRIQUEZ, INC.

Direct Labor Budget

For the Year Ending December 31, 2017

EXERCISE 23–10

LOWELL COMPANY

Production Budget

For the Quarter Ending March 31, 2017

EXERCISE 23-10 (Continued)

LOWELL COMPANY

Direct Labor Budget

For the Quarter Ending March 31, 2017

EXERCISE 23–11

ATLANTA COMPANY

Manufacturing Overhead Budget

For the Year Ending December 31, 2017

EXERCISE 23–12

KIRKLAND COMPANY

Selling and Administrative Expense Budget

For the Six Months Ending June 30, 2017

EXERCISE 23–13

(a) FULTZ COMPANY

Computation of Cost of Goods Sold

For the Year Ending December 31, 2017

(b) FULTZ COMPANY

Budgeted Income Statement

For the Year Ending December 31, 2017

EXERCISE 23–14

DANNER COMPANY

Cash Budget

For the Two Months Ending February 28, 2017

EXERCISE 23–15

DEITZ CORPORATION

Cash Budget

For the Quarter Ended March 31, 2017

EXERCISE 23–16

(a) TRENSHAW COMPANY

Cash Budget

For the Month Ended July 31, 2017

EXERCISE 23–17

(a) NIETO COMPANY

Expected Collections from Customers

(b) NIETO COMPANY

Expected Payments for Direct Materials

EXERCISE 23–18

(a) (1)

GREEN LANDSCAPING INC.

Schedule of Expected Collections From Clients

For the Quarter Ending March 31, 2017

(2)

GREEN LANDSCAPING INC.

Schedule of Expected Payments for Landscaping Supplies

For the Quarter Ending March 31, 2017

________________________________________________________

EXERCISE 23–19

PLETCHER DENTAL CLINIC

Cash Budget

For the Two Quarters Ending June 30, 2017

EXERCISE 23–20

(a) GRAND STORES

Merchandise Purchases Budget

For the Month Ending June 30, 2017

(b) GRAND STORES

Budgeted Income Statement

For the Month Ending June 30, 2017

EXERCISE 23–21

Emeric and Ellie’s Painting Service

Direct Labor Budget

For the Month Ending June 30, 2017

SOLUTIONS TO PROBLEMS

PROBLEM 23–1A

COOK FARM SUPPLY COMPANY

Sales Budget

For the Six Months Ending June 30, 2017

COOK FARM SUPPLY COMPANY

Production Budget

For the Six Months Ending June 30, 2017

PROBLEM 23-1A (Continued)

COOK FARM SUPPLY COMPANY

Direct Materials Budget—Gumm

For the Six Months Ending June 30, 2017

COOK FARM SUPPLY COMPANY

Direct Labor Budget

For the Six Months Ending June 30, 2017

PROBLEM 23-1A (Continued)

COOK FARM SUPPLY COMPANY

Selling and Administrative Expense Budget

For the Six Months Ending June 30, 2017

COOK FARM SUPPLY COMPANY

Budgeted Income Statement

For the Six Months Ending June 30, 2017

PROBLEM 23–2A

(a) DELEON INC.

Sales Budget

For the Year Ending December 31, 2017

PROBLEM 23-2A (Continued)

(c) DELEON INC.

Direct Materials Budget

For the Year Ending December 31, 2017

PROBLEM 23-2A (Continued)

(e) DELEON INC.

Budgeted Income Statement

For the Year Ending December 31, 2017

PROBLEM 23–3A

(a) HILL INDUSTRIES

Sales Budget

For the Year Ending December 31, 2017

PROBLEM 23-3A (Continued)

PROBLEM 23–4A

(a) (1) Expected Collections from Customers

PROBLEM 23-4A (Continued)

(b) COLTER COMPANY

Cash Budget

For the Two Months Ending February 28, 2017

PROBLEM 23–5A

(a) SUPPAR COMPANY

San Miguel Store

Merchandise Purchases Budget

For the Months of May and June, 2017

PROBLEM 23-5A (Continued)

(b) SUPPAR COMPANY

San Miguel Store

Budgeted Income Statement

For the Months of May and June, 2017

PROBLEM 23–6A

KRAUSE INDUSTRIES

Budgeted Cost of Goods Sold

For the Year Ending December 31, 2017

PROBLEM 23-6A (Continued)

KRAUSE INDUSTRIES

Budgeted Balance Sheet

December 31, 2017

PROBLEM 23-6A (Continued)

Proof of budgeted cash balance December 31, 2017

CD23 CURRENT DESIGNS

CURRENT DESIGNS

Production Budget

For the Year Ending December 31, 2017

CD9 (Continued)

CURRENT DESIGNS

Direct Materials Budget

For the Year Ending December 31, 2017

CD23 (Continued)

CURRENT DESIGNS

Direct Labor Budget

For the Year Ending December 31, 2017

CURRENT DESIGNS

Manufacturing Overhead Budget

For the Year Ending December 31, 2017

CD23 (Continued)

CURRENT DESIGNS

Selling and Administrative Expense Budget

For the Year Ending December 31, 2017

BYP 23-1 DECISION-MAKING ACROSS THE ORGANIZATION

(b) Palmer Corporation should consider the adoption of a “bottom to top”

(participative) budget process. This means that the people responsible

BYP 23–1 (Continued)

BYP 23-2 MANAGERIAL ANALYSIS

(b) Given the nature of their product, a decline in quality should be

BYP 23-3 REAL-WORLD FOCUS

(a) According to Mr. LaFaive, zero-based budgeting requires that the

BYP 23-4 COMMUNICATION ACTIVITY

Date 2017

Mrs. Megan Parcells, CEO

Life Protection Products

Dear Mrs. Parcells:

BYP 23–4 (Continued)

However, even if you raised prices, you will find that you need additional

BYP 23-5 ETHICS CASE

BYP 23-6 ALL ABOUT YOU

Personal Budget

Typical Month

Income:

BYP 23-7 CONSIDERING YOUR COSTS AND BENEFITS