Managerial Accounting
Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Chapter 7, Problem 4PSB

2.

To determine

To prepare: Production budget of N manufacturing.

2.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the Production budget of N manufacturing

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

3.

To determine

To prepare: Raw material budget of N manufacturing.

3.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the raw material budget of N manufacturing

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

4.

To determine

To prepare: Direct labor budget of N manufacturing.

4.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the direct labor budget of N manufacturing

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

5.

To determine

To prepare: Factory overhead budget of N manufacturing.

5.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the factory overhead budget of N manufacturing

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

6.

To determine

To prepare: Selling expense budget of N manufacturing.

6.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the selling expense budget of N manufacturing

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

7.

To determine

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

7.

Expert Solution
Check Mark

Explanation of Solution

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

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

8.

To determine

To prepare: Cash budget of N manufacturing.

8.

Expert Solution
Check Mark

Explanation of Solution

Statement that shows the Cash budget of N manufacturing

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

Working note:

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

9.

To determine

To prepare: Budgeted income statement for the third quarter.

9.

Expert Solution
Check Mark

Explanation of Solution

Prepare income statement.

N. Manufacturing
Income Statement
For three months ended September 30,2017
Particulars Amount ($) Amount ($)
Sales 1,020,000
Less: Cost of goods sold ( 60,000 units×$14.35 ) 861,000
Gross profit 159,000
Less: Operating expenses
Sales commission 102,000
Sales salaries 10,500
General administrative salary 27,000
Total operating expense 139,500
Earnings before interest and taxes 19500
Less: Interest on long term notes 8100
Interest on short term note 240
Earnings before taxes (A) 11,160
Less: Income tax ( A×35% ) 3,906
Net income 7,254
Table (10)

Thus, budgeted net income of N manufacturing is $7,254.

10.

To determine

To prepare: Budgeted balance sheet for the third quarter.

10.

Expert Solution
Check Mark

Explanation of Solution

Prepare balance sheet

N. Manufacturing
Balance sheet
For three months ended September 30,2017
Particulars Amount ($)
Assets
Cash 40,000
Account Receivables 238,000
Raw material inventory 15,840
Finished goods inventory 241,080
Total current assets 534,920
Equipment 820,000
Less: Accumulated depreciation 300,000
Net equipment 520,000
Total Assets 1,054,920
Liabilities and Stockholder’s Equity
Liabilities
Accounts Payable 88,800
Bank loan payable 14,380
Income tax payable 3,906
Total current liability 107,086
Long term note payables 300,000
Total liabilities 407,086
Stockholder’s Equity
Common Stock 600,000
Retained earnings 47,834
Total stockholders’ equity 647,834
Total Liabilities and Stockholder’s equity 1,054,920
Table (11)

Working note:

Calculation of retained earnings,

    Closing retained earning=Opening retained earning+Net incomeDividend =$60,580+$7,254$20,000 =$47,834

Hence, the total of the balance sheet of the N Manufacturing as on September 30, 2017 is of $1,054,920.

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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