Concept explainers
1.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly sales budget including a schedule of expected cash collections.
2.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly production budget.
3.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials.
4.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly direct labor budget.
5.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly manufacturing overhead budget.
6.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Ending finished goods inventory budget.
7.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly selling and administrative expense budget.
8.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Quarterly
9.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Income statement.
10.
Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.
Balance sheet
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MANAGERIAL ACCOUNTING F/MGRS.
- Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?arrow_forwardO https://ezto. Help Save & Exit Soved Unit 4 Assignment 8. In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast. True or False Ask True False 8 of 20 Mc Graw Hillarrow_forwardc. Cost Control The partners believed that controlling cost is critical to their long term profitability. The following are budgeted and actual activities and cost for the first month of business: SBB SB Budget 1050 Actual Budget Actual Units 990 450 475 3,150 Pattie Bread Toppings Fries Packaging Drinks O/H RM RM 3,100 RM 675 RM 730 RM 525 RM 520 RM 450 RM 490 RM 1,575 RM 720 1,550 800 RM 675 RM RM 840 RM RM 450 RM 455 RM 210 RM 200 RM 90 RM 96 RM 525 RM 500 RM 225 RM 250 RM 4,074 RM 4,014 RM 1,746 RM 1,746 Required: I.Prepare a cost performance report for the first month of operation (Compare actual costs with flexible budgeted costs). II. Discuss the possible causes for significant costs variances (favourable and unfavourable) and recommend correction actions to rectify the costs variances.arrow_forward
- Current Attempt in Progress Sandhill's, Inc. has provided you with the following financial information: Budgeted Actual Sales Quantity 8,100 8,300 Sales price per unit $6.50 $6.25 Variable product cost per unit 2.50 2.75 Selling expense (fixed) 5,100 8,100 Administrative expense (fixed) 17,100 16,100 Income tax expense 3,900 4,100 Prepare a flexible budget. SANDHILL'S, INC. Flexible Budget Sales Revenuearrow_forwardQUESTION THREE (3) Case Study for Slopes Company. Comprehensive operating budget. Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2018, Slope's accountant gathered the following data to prepare budgets for 2019: Materials and labor requirements Direct materials: Wood 5 board feet per snowboard Fiberglass 6 yards per snowboard Direct manufacturing labor 5 hours per snowboard Slopes' CEO expects to sell 1,000 snow boards during 2019 at an estimated retail price of RM 450 per board. Further, he expects 2019 beginning inventory of 100 boards, and would like to end 2019 with 200 snowboards in stock. Direct materials inventories Beginning Inventory 1/1/2019 Ending Inventory 12/31/2019 Wood 2,000 1,500 Fiberglass 1,000 2,000 Variable manufacturing overhead is allocated is allocated at the rate RM 7 per direct manufacturing labor-hour. There are also RM 66,000 in fixed manufacturing overhead costs budgeted for 2019.Slopes…arrow_forwardExercise 3 (Materials Purchase Budget) Mini Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost P2 per chip and are purchased from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shownbelow. Year2 Year3 First Second Third Fourth First Budgeted production incalculators. . 60,000 90,000 150,000 100,000 80,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Required: Prepare a materials purchases budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the peso amount of purchases…arrow_forward
- uiz i 2 Required information [The following information applies to the questions displayed below.] The fixed budget for 20,900 units of production shows sales of $438,900; variable costs of $62,700; and fixed costs of $142,000. If the company actually produces and sells 27,300 units, calculate the flexible budget income. Contribution margin Flexible Budget------ ---Flexible Budget at --- Variable Amount per Unit Total Fixed Cost 20,900 units 27,300 unitsarrow_forwardHelp Save & Exit ! Required information The Foundational 15 (Static) [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10] [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. C. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following…arrow_forwardMaster Budget with Supporting SchedulesYou have just been hired as a management trainee by Cravat Sales Company, a nationwide distributer ofa designer’s silk ties. The company has an extensive franchise in the distribution of the ties, and saleshave grown so rapidly over the last few years that it has become necessary to add new members to themanagement team. You have been given responsibility for all planning and budgeting. Your firstassignment is to prepare a master budget for the next three months, starting April 1st. You are anxious tomake favorable impression on the president and have assembled the information below.The company desires to maintain a minimum ending cash balance each month of $10,000. The ties aresold to retailers for $9.00 each. Recent and forecasted sales in units are as follows:Month Units Month UnitsJanuary Actual 20,000 June 60,000February Actual 24,000 July 40,000March Actual 28,000 August 35,000April 35,000 September 30,000May 42,500 October 30,000The large…arrow_forward
- Exercise 3 (Materials Purchase Budget) Mini Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost P2 per chip and are purchased from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below. Year2 Year3 First Second Third Fourth First Budgeted production In calculators........ 60,000 90,000 150,000 100,000 80,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2.…arrow_forwardQuestion 3 ANSWER ALL PARTS OF THE QUESTION 1. Please explain the characteristics of the relevant cost and give two examples of the irrelevant cost. 2. “The Traditional budget enables better cost control within firms”, discuss the previous statement with giving two examples of the main alternative budgets systems that you learn this year. 3. London Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 40 litres heavy-duty plastic container. Each container requires the following: Types of Cost Standard quantity Standard price Direct labour 0.2 hours £18 per hour During March, London…arrow_forwardPrepare a Flexible Budget Performance Report Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below: The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Using Exhibit 9–8 as your guide, prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. 2. Which of the variances should be of concern to management? Explain. Exhibit 9–8 Performance Report Combining Activity Variances with Revenue and Spending Variancesarrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning