2. Angel, Inc.. with P10,000,000 of par stock outstanding, plans to budget earnings of 6%, before income tax, on this stock: The marketing department budgets sales at P6,000,000. The budget director approves the sales budget and expenses s follows: Marketing 15% sales Administrative 5% of sales Financial 1% of sales Labor is expected to be 50% of the total manufacturing costs; materials issued for the budgeted production will cost P1,250,000; therefore any savings in manufacturing cost will have to be in factory overhead. Inventories are to be as follows: Jan. 1 Dec. 31 Finished goods Work in process Raw materials 400,000 50,000 250,000 500,000 150,000 200,000 Required: a. Budgeted Income Statement. b. Budgeted Cost of Goods manufactured and Sold. c. Budgeted Purchases and Materials.

2. Angel, Inc.. with P10,000,000 of par stock outstanding, plans to budget earnings of 6%, before income tax, on this stock: The marketing department budgets sales at P6,000,000. The budget director approves the sales budget and expenses s follows: Marketing 15% sales Administrative 5% of sales Financial 1% of sales Labor is expected to be 50% of the total manufacturing costs; materials issued for the budgeted production will cost P1,250,000; therefore any savings in manufacturing cost will have to be in factory overhead. Inventories are to be as follows: Jan. 1 Dec. 31 Finished goods Work in process Raw materials 400,000 50,000 250,000 500,000 150,000 200,000 Required: a. Budgeted Income Statement. b. Budgeted Cost of Goods manufactured and Sold. c. Budgeted Purchases and Materials.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
The estimated purchases of raw materials would be
5) Prepare a flexible budget for the SGA expenses at the sales levels provided: Sales commissions 9% of sales Ad expense 12% of sales Miscellaneous expense $5000 per month plus 3% of sales Office expense $20,000 per month Customer support expense $15,000 per month plus 5% of sales R&D expense $30,000 per month $300,000 $500,000 $700,000
Jameson Company provided the following information for the coming year: Units produced and sold 230,000 Cost of goods sold per unit $5.30 Selling price $9.70 Variable selling and administrative expenses per unit $1.60 Fixed selling and administrative expenses $387,000 Tax rate 35% Required: Prepare a budgeted income statement for Jameson Company for the coming year. Round all income statement amounts to the nearest dollar. Jameson Company Budgeted Income Statement For the Coming Year Sales $fill in the blank 1 Cost of goods sold fill in the blank 2 Gross margin $fill in the blank 3 Less: Variable selling and administrative expenses fill in the blank 4 Less: Fixed selling and administrative expenses fill in the blank 5 Operating income $fill in the blank 6 Less: Income taxes fill in the blank 7 Net income $fill in the blank 8
1. The following budget estimates are available for Ashton Ltd., manufacturer of a single product:Actual and projected sales: Cash(R) Credit(R)January (actual) 70 800 283 200February (actual) 72 000 288 000March (actual) 71 400 285 600April (budget) 68 400 273 600May (budget) 70 800 283 200June (budget) 72 000 288 000Debtors on average settle their accounts as follows: • 50% pay during the month following the month of sale, and are allowed a discount of 5%,• 47% pay during the second month following the month of sale, and• 3% prove uncollectable. Required production is as follows: Month UnitsMarch 17 900April 17 400May 17 850The inventory policy of the company is to maintain closing stock of raw material at 80% of the following month's production requirements. The company uses 5 kg of raw material at a cost of R1,50 per kg, to manufacture one unit. Raw material stock at…
The estimated purchases of raw materials would be
If the projection is that sales will increase by 10% in the coming year, can the company afford to also increase commission from 12% to 15%? Why or why not.
Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $14 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 33 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar. Oliver Company Budgeted Income Statement For the Coming Year $fill in the blank fill in the blank $fill in the blank fill in the blank fill in the blank $fill in the blank fill in the blank $fill in the blank
! Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 630 sun shades in May and 420 In June. Each shade sells for $147. Shadee's beginning and ending finished goods Inventories for May are 75 and 55 shades, respectively. Ending finished goods Inventory for June will be 60 shades. E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 80 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: • Selling costs are expected to be 6…
3. Budji Corp. is preparing its budget for 19B. For 19A, the following were reported: Sales (100,000 units) Cost of Goods Sold Gross Profit P1,000,000 600,000 P 400,000 Operating Expenses (including depreciation of P40,000) Net Income 240,000 P 160,000 Selling prices will increase by 10% and sales volume in units will decrease by 5%. The cost of goods sold as a percent of sales will increase to 62%. Other than depreciation, all operating costs are variable. Budji will budget a net income for 19B of a. P167,100 b. P167,500 c. P168,000 d. P176,000
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
Q. 6) A summary of a manufacturing company's budgeted profit statement for its next financial year, when it expects to be operating at 75 percent of capacity, is given below: Omani RialOmani Rials Sales 4,500 units at Omani Rials 32 144,000 Less: Direct Materials 27,000 Direct wages 36,000 Production overheads- --Fixed 21,000 -Variable 9,000 (93,000) Gross profit 51,000 Less: Admin., selling and distribution costs: -----------Fixed 18,000 ----------- Variable 13,500 (31,500) Net profit 19,500 it has been estimated that: i if the selling price per unit were reduced to Omani Rials 28, the increased demand would utilise 90 percent of the company's capacity without any additional advertising expenditure; ii. to attract sufficient demand to utilise full capacity would require a 15 percent reduction in the current selling price and a Omani Rials 2,500 special advertising campaign. Required: 1. Calculate the breakeven point in units, based on the original budget; 2. Calculate the profits and…