!Required information[The following information applies to the questions displayed below.]Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:July$ 56,000August$ 72,000September$ 56,000Budgeted salesBudgeted cash payments forDirect materials15,5603,44019,60012,8402,76016,20013,1602,84016,600Direct laborOverheadSales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in themonth following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. Aminimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cashbalance is below $47,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at eachmonth-end. Any preliminary cash balance above $47,000 is used to repay loans at month-end. Expenses are paid in themonth incurred and consist of sales commissions (10% of sales), office salaries ($3,400 per month), and rent ($5,900 permonth).2. Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan repayment amounts (if any)should be indicated with minus sign. Enter your final answers in whole dollars.) Answer is not complete.BUILT-TIGHTCash BudgetJulyAugustSeptemberBeginning cash balance2$47,00047,0002423,533Add: Cash receiptsTotal cash availableLess: Cash payments forDirect materialsDirect laborOverheadSales commissionsOffice salariesRentInterest on loanTotal cash paymentsPreliminary cash balanceLoan activityAdditional loanRepayment of loan to bankEnding cash balanceLoan balanceJulyAugustSeptemberLoan balance - Beginning of monthAdditional loan (loan repayment)Loan balance - End of month

The cash budget is prepared to record cash receipts and cash payments for the period and find out…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hemphill Corporation uses customers served as its measure of activity. During June, the company budgeted for 20,000 customers, but actually served 19,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Fixed amount per month Variable amount per customer Revenue - $4.50 Wages and salaries $23,900 $1.40 Supplies $0 $0.80 Insurance $5,700 $0.00 Miscellaneous $5,000 $0.40 Actual results for June: Revenue $85,400 Wages and Salaries $52,700 Supplies $17,500 Insurance $5,500 Miscellaneous $12,200 Calculate revenue variance, spending variance for wages and salaries, and spending variance for insurance. Label them as favorable or unfavorable. Please show your workings
! Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800, 29,000, 31,000, and 32,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two…
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 12,000 10,200 10,500 11,300 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $7.00 per direct labor-hour and its total fixed manufacturing overhead is $88,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $22,000 per quarter. 1. Prepare the company’s manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September Budgeted sales $ 55,000 $ 71,000 $ 57,000 Budgeted cash payments for Direct materials 15,360 12,640 12,960 Direct labor 3,240 2,560 2,640 Factory overhead 19,400 16,000 16,400 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $44,200 in accounts receivable; and a $4,200 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are…
Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,500 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,100,000 Costs Direct materials 992,000 Direct labor 232,500 Sales staff commissions 62,000 Depreciation—Machinery 295,000 Supervisory salaries 198,000 Shipping 217,000 Sales staff salaries (fixed annual amount) 251,000 Administrative salaries 498,500 Depreciation—Office equipment 199,000 Income $ 155,000 Problem 23-2A (Algo) Preparing a flexible budget performance report LO P1 Phoenix Company reports the following actual results. Actual sales were 18,500 units. Sales (18,500 units) $ 3,746,250 Costs Direct materials $ 1,198,800 Direct labor 284,900 Sales staff commissions 64,750…
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[The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 61,500 August $ 77,500 Budgeted cash payments for Direct materials Direct labor Overhead 16,660 4,540 20,700 13,940 3,860 17,300 September $ 50,500 14,260 3,940 17,700 Sales to customers are 25% cash and 75% on credit. Sales in June were $60,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $25,000 in cash and $5,500 in loans payable. A minimum cash balance of $25,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $25,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $25,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales),…
of 2 ook rint rences- Required information [The following information applies to the questions displayed below] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead Sales Cash receipts from: July $ 63,500 Total cash receipts 16,260 4,140 20,300 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $17,000 in cash and $5,100 in loans payable. A minimum cash balance of $17,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $17,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of…
Your Company is working on its cash budget for July. The budgeted beginning cash balance is $46,000. Budgeted cash receipts total $174,000 and budgeted cash disbursements total $175,000. The desired ending cash balance is $50,000. What is the excess (deficiency) of cash available over disbursements for July? Group of answer choices $ 45,000 $221,000 $ 50,000 $ 1,000 $ 47,000
[The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 57,000 August $ 73,000 September $ 55,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,760 3,640 19,800 13,040 13,360 2,960 16,400 3,040 16,800 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loans payable. A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $43,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $43,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales),…
! Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,00O, and 18,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct Ilabor wage rate is $12 per hour. Each unit of finished goods requires two…

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