ASSETS Cash Accounts receivable Raw materials inventory Finished good inventory
ID: 2557230 • Letter: A
Question
ASSETS Cash Accounts receivable Raw materials inventory Finished good inventory Total current assets Equipment, gross* Accumulated depreciation Equipment, net TOTAL ASSETS 50,000 249,900 35,000 241,080 575,980 720,000 (240,000) 480,000 1,055,980 LIABILITIES AND EQUITY Accounts payable Note payable Total liabilities Common stock Retained earnings Total stockholders' equity TOTAL LIABILITIES AND EQUITY 161,400 334,000 495,400 500,000 60,580 560,580 1,055,980 Equipment is depreciated on a straight-line basis.Explanation / Answer
June
July
August
September
October
20000
21000
19000
20000
24000
Sales Budget
July
August
September
Quarter
Budgeted Unit Sales
21000
19000
20000
60000
Selling Price per unit
$ 23
$ 23
$ 23
$ 23
Total sales
$ 483,000
$ 437,000
$ 460,000
$ 1,380,000
= 21000 * 23
Production Budget
July
August
September
Quarter
October
Budgeted unit sales
21000
19000
20000
60000
24000
Add: Desired ending inventory
13300
14000
42000
42000
Total Needs
34300
33000
62000
102000
Less: Beginning Inventory
14700
13300
14000
14700
Required Production ofUnits
19600
19700
48000
87300
Raw Material budget
July
August
September
Quarter
Budgeted production
19600
19700
48000
87300
Raw material required per unit
1.5
1.5
1.5
1.5
Budgeted required of rw material for production
29400
29550
72000
130950
Add: Desired ending inventory
5910
14400
7200
7200
Total Needs
25510
34100
55200
94500
Less: Beginning Inventory
4375
5910
14400
4375
Required Purchase of Raw Material
21135
28190
40800
90125
Unit Price
$ 8
$ 8
$ 8
$ 8
Purchase of Raw Material
$ 169,080
$ 225,520
$ 326,400
$ 721,000
= 21135 * 8
Direct Labour Budget
July
August
September
Quarter
Budgeted production
19600
19700
48000
87300
Direct labour required per unit
0.5
0.5
0.5
0.5
Budgeted required of labour hours
9800
9850
24000
43650
Direct labour rate per hour
$ 16
$ 16
$ 16
$ 16
Direct Labour Cost
$ 156,800
$ 157,600
$ 384,000
$ 698,400
= 9800 * 16
June
July
August
September
October
20000
21000
19000
20000
24000
Sales Budget
July
August
September
Quarter
Budgeted Unit Sales
21000
19000
20000
60000
Selling Price per unit
$ 23
$ 23
$ 23
$ 23
Total sales
$ 483,000
$ 437,000
$ 460,000
$ 1,380,000
= 21000 * 23
Production Budget
July
August
September
Quarter
October
Budgeted unit sales
21000
19000
20000
60000
24000
Add: Desired ending inventory
13300
14000
42000
42000
Total Needs
34300
33000
62000
102000
Less: Beginning Inventory
14700
13300
14000
14700
Required Production ofUnits
19600
19700
48000
87300
Raw Material budget
July
August
September
Quarter
Budgeted production
19600
19700
48000
87300
Raw material required per unit
1.5
1.5
1.5
1.5
Budgeted required of rw material for production
29400
29550
72000
130950
Add: Desired ending inventory
5910
14400
7200
7200
Total Needs
25510
34100
55200
94500
Less: Beginning Inventory
4375
5910
14400
4375
Required Purchase of Raw Material
21135
28190
40800
90125
Unit Price
$ 8
$ 8
$ 8
$ 8
Purchase of Raw Material
$ 169,080
$ 225,520
$ 326,400
$ 721,000
= 21135 * 8
Direct Labour Budget
July
August
September
Quarter
Budgeted production
19600
19700
48000
87300
Direct labour required per unit
0.5
0.5
0.5
0.5
Budgeted required of labour hours
9800
9850
24000
43650
Direct labour rate per hour
$ 16
$ 16
$ 16
$ 16
Direct Labour Cost
$ 156,800
$ 157,600
$ 384,000
$ 698,400
= 9800 * 16