Managerial Accounting
Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 7, Problem 4PSA

1.

To determine

To prepare: Sale budget of Z manufacturing.

1.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the sales budget of Z manufacturing

Z Manufacturing
Sales Budget
Particulars April ($) May ($) June ($) Total ($)
Sales unit (A) 20,500 19,500 20,000 60,000
Selling price Per unit (B) 23.85 23.85 23.85 23.85
Total sales ( A×B ) 488,925 465,075 477,000 1,431,000
Table (1)

2.

To determine

To prepare: Production budget of Z manufacturing.

2.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the Production budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  1
Table (2)

3.

To determine

To prepare: Raw material budget of Z manufacturing.

3.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the raw material budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  2
Table (3)

4.

To determine

To prepare: Direct labor budget of Z manufacturing.

4.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the direct labor budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  3
Table (4)

5.

To determine

To prepare: Factory overhead budget of Z manufacturing.

5.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the factory overhead budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  4
Table (5)

6.

To determine

To prepare: Selling expense budget of Z manufacturing.

6.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the selling expense budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  5
Table (6)

7.

To determine

To prepare: General and administrative expense budget of Z manufacturing.

7.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the General and administrative expense budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  6
Table (7)

8.

To determine

To prepare: Cash budget of Z manufacturing.

8.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the Cash budget of Z manufacturing

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  7
Table (8)

Working Notes:

Managerial Accounting, Chapter 7, Problem 4PSA , additional homework tip  8
Table (9)

9.

To determine

To prepare: Budgeted income statement for the second quarter.

9.

Expert Solution
Check Mark

Explanation of Solution

Prepare income statement.

Z. Manufacturing
Income Statement
For three months ended June 30,2017
Particulars Amount ($) Amount ($)
Sales 1,431,000
Less: Cost of goods sold 1,191,000
Gross profit 240,000
Less: Operating expenses
Sales commission 114,480
Sales salaries 9000
General administrative salary 36000
Total operating expense 159,480
Earnings before interest and taxes 80,520
Less: Interest on long term notes 13,500
Interest on short term note 120
Earnings before taxes (A) 66,900
Less: Income tax ( A×35% ) 23,415
Net income 43,485
Table (10)

Thus, budgeted net income of Z manufacturing is $43,485.

10.

To determine

To prepare: Budgeted balance sheet for the second quarter.

10.

Expert Solution
Check Mark

Explanation of Solution

Prepare balance sheet

Z. Manufacturing
Balance sheet
For three months ended June 30,2017
Particulars Amount ($)
Assets
Cash 40,000
Account Receivables 333,900
Raw material inventory 80,000
Finished goods inventory 325,540
Total current assets 779,440
Equipment 730,000
Less: Accumulated depreciation 210,000
Net equipment 50,000
Total Assets 1,299,440
Liabilities and Stockholder’s Equity
Liabilities
Accounts Payable 182,000
Bank loan payable 16,752
Income tax payable 23,415
Total current liability 222,167
Long term payables 500,000
Total liabilities
Stockholder’s Equity
Common Stock 335,000
Retained earnings 242,273
Total stockholders’ equity 577,273
Total Liabilities and Stockholder’s equity 1,299,440
Table (11)

Working Notes:

Calculation of retained earnings,

    Closing retained earning=Opening retained earning+Net incomeDividend =$208,788+$43,485$10,000 =$242,273

Hence, the total of the balance sheet of the Z Manufacturing as on June 30, 2017 is of $1,299,440.

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Chapter 7 Solutions

Managerial Accounting

Ch. 7 - How does budgeting help management coordinate and...Ch. 7 - Why is the sales budget so important to the...Ch. 7 - What is the selling expense budget? What is the...Ch. 7 - Prob. 9DQCh. 7 - GOOGLE Google prepares a cash budget. What is a...Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Coca-cola recently redesigned its bottle to reduce...Ch. 7 - Activity-based budgeting is a budget system based...Ch. 7 - Budget motivation C1 For each of the following...Ch. 7 - Budgeting benefits C1 For each of the following...Ch. 7 - Prob. 3QSCh. 7 - Prob. 4QSCh. 7 - Prob. 5QSCh. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 14QSCh. 7 - Prob. 15QSCh. 7 - Manufacturing: Production budget P1 Atlantic Surf...Ch. 7 - Prob. 17QSCh. 7 - Prob. 18QSCh. 7 - Prob. 19QSCh. 7 - Cash receipts, with uncollectible accounts P2 The...Ch. 7 - Cash receipts, with uncollectible accounts P2 Well...Ch. 7 - Prob. 22QSCh. 7 - Budgeted loan activity P2 Santos Co. is preparing...Ch. 7 - Prob. 24QSCh. 7 - Prob. 25QSCh. 7 - Prob. 26QSCh. 7 - Prob. 27QSCh. 7 - Prob. 28QSCh. 7 - Prob. 29QSCh. 7 - Prob. 30QSCh. 7 - Prob. 31QSCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Exercise 20-5 Manufacturing: Direct labor budget...Ch. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 18ECh. 7 - Prob. 19ECh. 7 - Prob. 20ECh. 7 - Prob. 21ECh. 7 - Prob. 22ECh. 7 - Prob. 23ECh. 7 - Prob. 24ECh. 7 - Prob. 25ECh. 7 - Prob. 26ECh. 7 - Prob. 27ECh. 7 - Prob. 28ECh. 7 - Prob. 29ECh. 7 - Prob. 30ECh. 7 - Prob. 31ECh. 7 - Prob. 32ECh. 7 - Prob. 33ECh. 7 - Prob. 34ECh. 7 - Prob. 35ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 6PSACh. 7 - Prob. 7PSACh. 7 - Prob. 8PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 6PSBCh. 7 - Prob. 7PSBCh. 7 - Prob. 8PSBCh. 7 - Prob. 7SPCh. 7 - Prob. 1AACh. 7 - Prob. 2AACh. 7 - Prob. 3AACh. 7 - ETHICS CHALLENGE C1 BTN 20-3 Both the budget...Ch. 7 - Prob. 2BTNCh. 7 - Prob. 3BTNCh. 7 - Prob. 4BTNCh. 7 - Prob. 5BTNCh. 7 - Prob. 6BTN
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What is Budgeting? | Budgetary control | Advantages & Limitations of Budgeting; Author: Educationleaves;https://www.youtube.com/watch?v=INnPo0QPXf4;License: Standard youtube license