Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 9, Problem 9.60AP
To determine
The budgeted income statement for the month of May and June.
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Prepare Hilton
goods sold computations.
2. Prepare a combined cash budget similar to exhibits in the chapter. If no financing ac-
P9-61A Cash budgets (Learning Objective 3)
and cash disbursements:
are
as follows:
Budgeted Sales Revenue
$62,000
January
$70,000
February.
b. Actual purchases of direct materials in December were $24,500. The companye
purchases of direct materials in January are budgeted to be $24,000 and $26.000 i
February. All purchases are paid 40% in the month of purchase and 60% the follow
month.
c. Salaries and sales commissions are also paid half in the month earned and half the
next month. Actual salaries were $8,000 in December. Budgeted salaries in Janu-
ary are $9,000 and February budgeted salaries are $10,500. Sales commissions each
month are 8% of that month's sales.
d. Rent expense is $3,500 per month.
e. Depreciation is $2,100 per month.
f. Estimated income tax payments are made at the end of January. The estimated tax
payment is projected to be $12,500.
g.…
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job)..... $9,250
Purchase season football tickets in September.....160
Additional entertainment for each month.....250
Pay fall semester tuition in September......4,800
Pay rent at the beginning of each month.....600
Pay for food each month....550
Pay apartment deposit on September 2 (to be returned December 15).....600
Part-time job earnings each month (net of taxes)....1,200
a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?…
ing price of $26 per case. The following information relates to the budget for Main Street
a flexible budget performance report (Learning Objective 5)
Main Street Muffins sells its muffins to restaurants and coffee houses for an average sell-
Muffins for this year (all figures are annual totals unless otherwise noted):
Performance Evaluation
629
E10-26A Prepare
Budgeted sales in cases
9,100 cases
Packaging cost per case.
%24
Shipping expense per case
Sales commission expense.
2
5% of sales price
Salaries expense..
$6,500
Office rent
$3,900
Depreciation.
$2,500
Insurance expense...
$1,800
$ 900
Office supplies expense.
During the year, Main Street Muffins actually sold 9,500 cases, resulting in total sales rev-
enue of $255,200. Actual expenses (in total) from this year are as follows:
Packaging cost.
$ 10,600
$ 19,500
$ 12,760
$ 7,300
Shipping expense..
Sales commission expense.
Salaries expense...
$ 3,900
$ 2,500
$ 1,600
Office rent
Depreciation.
Insurance expense..
$ 1,600
Office…
Chapter 9 Solutions
Managerial Accounting (5th Edition)
Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QCCh. 9 - Prob. 4QCCh. 9 - Prob. 5QCCh. 9 - Prob. 6QCCh. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Prob. 9QCCh. 9 - Prob. 10QC
Ch. 9 - Short Exercises S9-1 Order of preparation and...Ch. 9 - Explain why companies use zero-based budgeting...Ch. 9 - Understanding key terms and definitions (Learning...Ch. 9 - Sales Budget (Learning Objective 2) Jefferson...Ch. 9 - Production budget (Learning Objective 2) Nichols...Ch. 9 - Direct materials budget (Learning Objective 2)...Ch. 9 - Prob. 9.7SECh. 9 - Prob. 9.8SECh. 9 - Prob. 9.9SECh. 9 - Prob. 9.10SECh. 9 - Prob. 9.11SECh. 9 - Cash payments budget (Learning Objective 3) Finley...Ch. 9 - Cash budget (Learning Objective 3) SaveCo...Ch. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Identify ethical standards violated (Learning...Ch. 9 - Prob. 9.17AECh. 9 - Sales budget for a retail organization (Learning...Ch. 9 - Prob. 9.19AECh. 9 - Production budget (Learning Objective 2) Hoffman...Ch. 9 - Direct materials budget (Learning Objective 2)...Ch. 9 - Production and direct materials budgets (Learning...Ch. 9 - Direct labor budget (Learning Objective 2)...Ch. 9 - Manufacturing overhead budget (Learning Objective...Ch. 9 - Operating expenses budget and an income statement...Ch. 9 - Budgeted income statement (Learning Objective 2)...Ch. 9 - Prob. 9.27AECh. 9 - Cash collections budget (Learning Objective 3)...Ch. 9 - Cash payments budget (Learning Objective 3) The...Ch. 9 - Prob. 9.30AECh. 9 - Prob. 9.31AECh. 9 - Budgeted balance sheet (Learning Objective 3) Use...Ch. 9 - Prob. 9.33AECh. 9 - Prob. 9.34AECh. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Prob. 9.37BECh. 9 - Prob. 9.38BECh. 9 - Prob. 9.39BECh. 9 - Prob. 9.40BECh. 9 - Direct materials budget (Learning Objective 2) Moe...Ch. 9 - Prob. 9.42BECh. 9 - Prob. 9.43BECh. 9 - Manufacturing overhead budget (Learning Objective...Ch. 9 - Prob. 9.45BECh. 9 - Prob. 9.46BECh. 9 - Prob. 9.47BECh. 9 - Prob. 9.48BECh. 9 - Prob. 9.49BECh. 9 - Combined cash budget (Learning Objective 3)...Ch. 9 - Sales and cash collections budgets (Learning...Ch. 9 - Prob. 9.52BECh. 9 - Prob. 9.53BECh. 9 - Prob. 9.54BECh. 9 - Prob. 9.55BECh. 9 - Prob. 9.56BECh. 9 - Comprehensive budgeting problem (Learning...Ch. 9 - Cash budgets under two alternatives (Learning...Ch. 9 - Comprehensive summary problem (Learning Objectives...Ch. 9 - Prob. 9.60APCh. 9 - Cash budgets (Learning Objective 3) Elis...Ch. 9 - Prob. 9.62APCh. 9 - Cost of goods sold, inventory, and purchases...Ch. 9 - Prob. 9.64APCh. 9 - Problems Group B P9-65B Comprehensive budgeting...Ch. 9 - Cash budgets under two alternatives (Learning...Ch. 9 - Comprehensive summary problem (Learning Objectives...Ch. 9 - Prob. 9.68BPCh. 9 - Cash budgets (Learning Objective 3) Ivans...Ch. 9 - Combined cash budget and a budgeted balance sheet...Ch. 9 - Prob. 9.71BPCh. 9 - Prepare comprehensive budgets for a retailer...Ch. 9 - Prob. 9.73SCCh. 9 - Discussion Questions 1. The sales budget is the...Ch. 9 - Budgeting for a Single Product In this activity,...Ch. 9 - Ethics and budgetary slack (Learning Objectives 1,...Ch. 9 - Prob. 9.77ACT
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