The major assessment for Budgeting is a budget project. The budget project we wi
ID: 2783784 • Letter: T
Question
The major assessment for Budgeting is a budget project. The budget project we will use is the case study (38) on page 206 of your textbook. Read case study 38 very carefully. You may have to read it several times, since it contains a lot of information.
Required: I ONLY NEED SOMEONE TO FIND OUT G) Statement of cost of goods manufactured, Statement of Cost of Goods sold, Pro Forma Income Statement, H) Overall Cash Budget. If you do find any incorrect answers in the other statements please feel free to let me know!
G. Prepare a Cost of Goods Manufactured, Cost of Goods Sold, and pro-forma Income Statement for the first quarter of 2013. The beginning Work-in-process Inventory is $20,000, ending Work-in-process Inventory is $18,000, the cost per unit of Finished Goods is $.70, and Operating Expenses are $300,000. (30 points)
H. Prepare the overall Cash Budget for the first quarter of 2013. No major capital expenditures are planned. The January 1st cash balance is $500,000. (10 points)
A. Sales Budget:
January
February
March
1st Qtr
Proj. sales (bottles)
350,000
425,000
400,000
1,175,000
× price per unit
1.05
1.05
1.05
1.05
Proj. sales ($)
367,500
446,250
420,000
1,233,750
B. Production Budget:
December
January
February
March
April
1st Qtr
Proj. sales (bottles)
370,000
350,000
425,000
400,000
395,000
1,175,000
+ Proj. ending inv.
35,000
42,500
40,000
39,500
37,500
39,500
Projected needs
405,000
392,500
465,000
439,500
432,500
1,214,500
– Proj. beg. inv.
-37,000
-35,000
-42,500
-40,000
-39,500
-35,000
Proj. prod’n (bottles)
368,000
357,500
422,500
399,500
393,000
1,179,500
C. Material Purchases Budget—Concentrate
December
January
February
March
April
1st Qtr
Proj. production (bottles)
368,000
357,500
422,500
399,500
393,000
1,179,500
÷ 32 (bottles per gallon)
/32
/32
/32
/32
/32
/32
Raw material needed for prod’n
11,500
11,172
13,203
12,484
12,281
36,859
+ Proj. ending inventory
2,234
2,641
2,497
2,456
2456
Projected needs
13,734
13,813
15,700
14,941
39,316
– Proj. beginning inventory
-2,300
-2,234
-2,641
-2,497
-2,234
Concentrate needed to purchase
11,434
11,579
13,059
12,444
37,082
× Price per gallon
4.80
4.80
4.80
4.80
4.80
Projected purchases ($)
54,883.20
55,576.80
62,685
59,729.76
177,991.60
Material Purchases Budget—Bottles
December
January
February
March
April
1st Qtr
Proj. production (bottles)
368,000
393,000
+ Proj. ending inventory
71,500
Projected needs
439,500
– Proj. beginning inventory
-73,600
Bottles needed to purchase
365,900
× Price per bottle
0.10
Projected purchases ($)
36,590
D. Direct Labor Budget
January
February
March
1st Qtr
Projected production (bottles)
357,500
422,500
399,500
1,179,500
÷ Bottles per hour
/600
/600
/600
/600
Direct labor hours needed for prod’n
596
704
666
1,966
× Direct labor rate per hour
X 15
X 15
X 15
X 15
Projected direct labor cost
8,937.50
10,562.50
9,987.50
29,487.50
E. Overhead Budget
December
January
February
March
1st Qtr
Projected production (bottles)
368,000
367,500
422,500
399,500
1,179,500
÷ Bottles per hour
/600
/600
/600
/600
/600
Budgeted machine hours
613.33
596
704
666
1,966
× Variable overhead rate
X 54.75
X 54.75
X 54.75
X 54.75
X 54.75
Projected variable overhead
33,580
32,621.88
38,553.13
36,454.38
107,629.38
Projected fixed overhead
123,333
123,333
123,333
123,333
369,999
Total projected overhead
156,913
155,954.88
161,886.13
159,787.38
477,628.38
Less: Depreciation (noncash)
-103,333
-103,333
-103,333
-103,333
-309,999
Budg. cash outflows for overhead
53,580
52,621.88
58,553.12
56,454.38
167,629.38
F. Cash Receipts Budget
January
February
March
1st Qtr
From November sales
59,062.5
59,062.5
From December sales
135,240
57,960
193,200
From January sales
183,750
128,625
55,125
367,500
From February sales
223,125
156,187.50
379,312.50
From March sales
210,000
210,000
Total cash receipts—sales
378,052.50
409,710
421,312.5
1,209,075
Cash Disbursements Budget
January
February
March
1st Qtr
DM purchases—concentrate
December
18,295
18,295
January
27,788.40
27,788.40
55,577
February
31,342.50
31,342.50
62,685
March
29,865
29,865
DM purchases—bottles
December
18,400
18,400
January
17,875
17,875
35,750
February
21,125
21,215
42,250
March
19,975
19,975
Total disbursements for DM
46,083
59,131
61,207
166,422
Total disbursements for DL
36,275
39,000
41,100
116,375
Manufacturing overhead costs
December
26,790
26,790
January
26,311
26,311
52,622
February
29,276.56
29,276.56
58,553
March
19,975
19,975
Total disbursements for OH
53,101
55,588
57,504
166,192
Total disbursements for S&A
100,000
100,000
100,000
300,000
Total cash disbursements
235,459
253,718
259,811
748,989
G. Statement of Cost of Goods Manufactured
Direct Materials
Purchases
Beginning Inventory
Ending Inventory
Materials Used
Direct Labor
Overhead
Total Manufacturing Costs
Beginning Work in Process
Ending Work in Process
Cost of Goods Manufactured
Statement of Cost of Goods Sold
Cost of Goods Manufactured
Beginning Finished Goods
Ending Finished Goods
Cost of Goods Sold
Pro Forma Income Statement
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Net Income
H. Overall Cash Budget
January
February
March
1st Qtr
Cash Receipts
Cash Disbursements
Change in Cash
Beginning Cash
Ending Cash
A. Sales Budget:
January
February
March
1st Qtr
Proj. sales (bottles)
350,000
425,000
400,000
1,175,000
× price per unit
1.05
1.05
1.05
1.05
Proj. sales ($)
367,500
446,250
420,000
1,233,750
B. Production Budget:
December
January
February
March
April
1st Qtr
Proj. sales (bottles)
370,000
350,000
425,000
400,000
395,000
1,175,000
+ Proj. ending inv.
35,000
42,500
40,000
39,500
37,500
39,500
Projected needs
405,000
392,500
465,000
439,500
432,500
1,214,500
– Proj. beg. inv.
-37,000
-35,000
-42,500
-40,000
-39,500
-35,000
Proj. prod’n (bottles)
368,000
357,500
422,500
399,500
393,000
1,179,500
Explanation / Answer
682041.85
PLEASE PROVIDE FEEDBACK....THANKS IN ADVANCE.. :-)
ALL FIGURES ARE TAKEN FROM UR ANSWERS OF OTHER PARTS...
Beg fg=35000x0.70
beg inventory @4.8 p.u.
G. Statement of Cost of Goods Manufactured Direct Materials Purchases 177991.56 Beginning Inventory + 35385.6 Ending Inventory - 36451.2 Materials Used 176925.96 Direct Labor + 29487.5 Overhead + 477628.38 Total Manufacturing Costs 684041.85 Beginning Work in Process - 20000 Ending Work in Process + 18000 Cost of Goods Manufactured682041.85
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