Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 2E
a)
To determine
To develop a pro forma income statement in contribution format that would appear in a
b)
To determine
To develop a pro forma income statement in contribution format that would appear in a flexible budget.
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Prepare a flexible production budget for the year ending December 31 for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following additional information is necessary to complete the budget:
Variable costs:
Direct labor ($6.00 per unit)
Direct materials ($8.00 per unit)
Variable manufacturing costs ($2.50 per unit)
Fixed costs:
Supervisor's salaries
$80,000
Rent
12,000
Depreciation on equipment
24,000
Cedar Jeans CompanyFlexible Production BudgetFor the Year Ending December 31
Units of production
fill in the blank 1
fill in the blank 2
fill in the blank 3
Variable costs:
Direct labor ($6.00 per unit)
$fill in the blank 4
$fill in the blank 5
$fill in the blank 6
Direct materials ($8.00 per unit)
fill in the blank 7
fill in the blank 8
fill in the blank 9
Variable manufacturing costs ($2.50 per unit)
fill in the blank 10
fill in…
Solomon Manufacturing Company established the following standard price and cost data.
Sales price
Variable manufacturing cost
Fixed manufacturing cost
$ 8.20 per unit
$ 3.50 per unit
$ 2,700 total
$ 900 total
Fixed selling and administrative cost
Solomon planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.
Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare the pro forma income statement in contribution format that would appear in a master budget.
SOLOMON MANUFACTURING COMPANY
Pro Forma Income Statement
Master Budget
2,200 Units
0
S
Baird Manufacturing Company established the following standard price and cost data.
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative cost
$ 8.90 per unit
$ 3.60 per unit
$2,000 total
$700 total
Baird planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units.
Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare the pro forma income statement in contribution format that would appear in a master budget.
BAIRD MANUFACTURING COMPANY
Pro Forma Income Statement
Master Budget
2,800 Units
0
$
0
Required A
Required B >
Chapter 15 Solutions
Survey Of Accounting
Ch. 15 - 1. Pam Kelly says she has no faith in budgets. Her...Ch. 15 - 7. What is a responsibility center?Ch. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - 3. When are sales and cost variances favorable and...Ch. 15 - 4. Joan Mason, the marketing manager for a large...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Prob. 10Q
Ch. 15 - Prob. 11QCh. 15 - 9. Minnie Divers, the manager of the marketing...Ch. 15 - 6. How do responsibility reports promote the...Ch. 15 - Prob. 14QCh. 15 - Prob. 15QCh. 15 - Prob. 16QCh. 15 - 12. How can a residual income approach to...Ch. 15 - Prob. 18QCh. 15 - Exercise 9-6A Evaluating a profit center Helen...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Exercise 8-3A Determining amount and type...Ch. 15 - Prob. 6ECh. 15 - Exercise 8-4A Determining sales and variable cost...Ch. 15 - Exercise 8-5A Determining flexible budget...Ch. 15 - Exercise 8-9A Responsibility for the fixed cost...Ch. 15 - Prob. 10ECh. 15 - Exercise 8-7A Evaluating a decision to increase...Ch. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Exercise 9-9A Residual income Climax Corporation...Ch. 15 - Residual income Gletchen Cough Drops operates two...Ch. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Problem 9-20A Return on investment Sorrento...Ch. 15 - Problem 9-21A Comparing return on investment and...Ch. 15 - Comparing return on investment and residual income...Ch. 15 - ATC 8-1 Business Applications Case Static versus...Ch. 15 - Prob. 2ATCCh. 15 - Prob. 3ATCCh. 15 - ATC 9-1 Business Applications Case Analyzing...Ch. 15 - Prob. 5ATC
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