Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 9, Problem 9.3DI
Pargo Company is preparing its
In addition, Pargo budgets 0.3 hours of direct labor per unit, labor costs at $15 per hour, and manufacturing
(a) Calculate the budgeted total unit cost.
(b) Prepare the budgeted multiple-step income statement for 2017. (Ignore income taxes.)
DO IT! 9-2 Pargo Company is preparing its
Sales. Sales for the year are expected to total 1,000,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 20% higher than the budgeted sales for the first quarter of 2017.
Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume.
Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 450,000 pounds.
Prepare the sales, production, and direct materials budgets by quarters for 2017.
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Shrek & Fiona Company, manufacturer of a single product, is preparing their annual budget for 2021:
Requirements:
2. Determine production volume
3. Estimate manufacturing costs and operating expenses
a. Purchases (material) budget
b. Personnel budget
c. Overhead budget
d. Selling and administrative budget
4.
Determine cash flow and other financial effects
a. Cash collection schedule
b. Cash disbursement for purchases, factory overhead, and selling and administrative expenses
Cash budget
С.
5. Formulate Projected Financial Statements (As of December 31, 2021)
a. Budgeted Cost of Goods Manufactured
b. Budgeted Income Statement
c. Budgeted Balance Sheet
Concord Company is preparing its manufacturing overhead budget for 2025. Relevant data consist of the following.
Units to be produced (by quarters): 11,200, 13,440, 15,680, 17,920. Direct labor: Time is 3.00 hours per unit. Variable
overhead costs per direct labor hour: indirect materials $1.60; indirect labor $2.40; and maintenance $1.00. Fixed
overhead costs per quarter: supervisory salaries $46, 200; depreciation $16,800; and maintenance $13,440. Prepare the
manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal place 1.25.
List variable expenses before fixed expense.) CONCORD COMPANY Manufacturing Overhead Budget Quarter 123
Concord Company is preparing its manufacturing overhead budget for 2025. Relevant data consist of the following.
Units to be produced (by quarters): 11,200, 13,440, 15,680, 17,920.
Direct labor: Time is 3.00 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $1.60; indirect labor…
Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 22,000 Knox lamps and 7,000 Ayer lamps in 2017. The following data are available for the year 2017.
E (Click the icon to view the data.)
E (Click the icon to view the December 31, 2017 production budget in units.)
Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labour costs budget (label it Schedule
for the year ending December 31, 2017.
(a) Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017.
Schedule 3A: Direct Material Usage Budget in Quantity and Dollars
Data
for the Year Ending December 31, 2017
Production budget in units
Material
Direct materials
Metal
Fabric
Total
Schedule 2: Production Budget (in Units)…
Chapter 9 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - (a) Accounting plays a relatively unimportant role...Ch. 9 - What criteria are helpful in determining the...Ch. 9 - Lori Wilkins maintains that the only difference...Ch. 9 - Prob. 7QCh. 9 - What is budgetary slack? What incentive do...Ch. 9 - Prob. 9QCh. 9 - What budget is the starting point in preparing the...
Ch. 9 - The production budget shows both unit production...Ch. 9 - Alou Company has 20,000 beginning finished goods...Ch. 9 - In preparing the direct materials budget for Quan...Ch. 9 - The production budget of Justus Company calls for...Ch. 9 - Ortiz Companys manufacturing overhead budget shows...Ch. 9 - Everly Companys variable selling and...Ch. 9 - For Goody Company, the budgeted cost for one unit...Ch. 9 - Indicate the supporting schedules used in...Ch. 9 - Identify the three sections of a cash budget. What...Ch. 9 - Noterman Company has credit sales of 600,000 in...Ch. 9 - Prob. 21QCh. 9 - Prob. 22QCh. 9 - Maris Company uses the following budgets: balance...Ch. 9 - Paige Company estimates that unit sales will be...Ch. 9 - Sales budget data for Paige Company are given in...Ch. 9 - Perine Company has 2,000 pounds of raw materials...Ch. 9 - For Gundy Company, units to be produced are 5,000...Ch. 9 - For Roche Inc., variable manufacturing overhead...Ch. 9 - Elbert Company classifies its selling and...Ch. 9 - North Company has completed all of its operating...Ch. 9 - Kaspar Industries expects credit sales for...Ch. 9 - Moore Wholesalers is preparing its merchandise...Ch. 9 - Use this list of terms to complete the sentences...Ch. 9 - Pargo Company is preparing its master budget for...Ch. 9 - Pargo Company is preparing its budgeted income...Ch. 9 - Batista Company management wants to maintain a...Ch. 9 - Zeller Company estimates that 2017 sales will be...Ch. 9 - Trusler Company has always done some planning for...Ch. 9 - Edington Electronics Inc. produces and sells two...Ch. 9 - Thome and Crede, CPAs, are preparing their service...Ch. 9 - Turney Company produces and sells automobile...Ch. 9 - DeWitt Industries has adopted the following...Ch. 9 - On January 1, 2017, the Hardin Company budget...Ch. 9 - Rensing Ltd. estimates sales for the second...Ch. 9 - Fuqua Companys sales budget projects unit sales of...Ch. 9 - Rodriguez, Inc., is preparing its direct labor...Ch. 9 - Lowell Company makes and sells artistic frames for...Ch. 9 - Atlanta Company is preparing its manufacturing...Ch. 9 - Kirkland Company combines its operating expenses...Ch. 9 - Fultz Company has accumulated the following budget...Ch. 9 - Danner Company expects to have a cash balance of...Ch. 9 - Deitz Corporation is projecting a cash balance of...Ch. 9 - The controller of Trenshaw Company wants to...Ch. 9 - Nieto Companys budgeted sales and direct materials...Ch. 9 - Green Landscaping Inc. is preparing its budget for...Ch. 9 - Pletcher Denial Clinic is a medium-sized dental...Ch. 9 - In May 2017, the budget committee of Grand Stores...Ch. 9 - Emeric and Ellies Painting Service estimates that...Ch. 9 - PROBLEMS: SET A Cook Farm Supply Company...Ch. 9 - Deleon Inc. is preparing its annual budgets for...Ch. 9 - Hill Industries had sales in 2016 of 6,800,000 and...Ch. 9 - Colter Company prepares monthly cash budgets....Ch. 9 - The budget committee of Suppar Company collects...Ch. 9 - Prob. 9.6APCh. 9 - CURRENT DESIGNS Diane Buswell is preparing the...Ch. 9 - MANAGEMENT DECISION-MAKING Decision-Making Across...Ch. 9 - Elliot Hesse Inc. manufactures ergonomic devices...Ch. 9 - Real-World Focus Information regarding many...Ch. 9 - Prob. 9.4BYPCh. 9 - Broadening Your Ethics Case BYP9-5 You are an...Ch. 9 - All About You In order to get your personal...Ch. 9 - Prob. 9.7BYP
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