A portable speaker or ear buds-which to buy? This is a question for many teens as well as their gift-giving relatives. A similar ques weighs on the minds of manufacturers, only their perspective relates to planning for production and sales for the upcoming year. Whispering is one such manufacturer. Before setting firm budgets and targets for the coming year, company management reviews year just ended. Key information related to last year is as follows. Budgeted volume (units) Actual volume (units) Budgeted selling price (per unit) Actual selling price (per unit) Budgeted variable cost (per unit) Actual variable cost (per unit) (a) Speaker 12,000 11,200 $80 $82 $33 $33 Master Budget Ear Buds 8,000 6,300 $80 $82 $21 $21 Set up a partial income statement through contribution margin for Whispering, recognizing appropriate amounts for the actual income statement, flexible budget, and master budget. Use Excel to reference input cells for each calculation needed for these partial income statements. Total

A portable speaker or ear buds-which to buy? This is a question for many teens as well as their gift-giving relatives. A similar ques weighs on the minds of manufacturers, only their perspective relates to planning for production and sales for the upcoming year. Whispering is one such manufacturer. Before setting firm budgets and targets for the coming year, company management reviews year just ended. Key information related to last year is as follows. Budgeted volume (units) Actual volume (units) Budgeted selling price (per unit) Actual selling price (per unit) Budgeted variable cost (per unit) Actual variable cost (per unit) (a) Speaker 12,000 11,200 $80 $82 $33 $33 Master Budget Ear Buds 8,000 6,300 $80 $82 $21 $21 Set up a partial income statement through contribution margin for Whispering, recognizing appropriate amounts for the actual income statement, flexible budget, and master budget. Use Excel to reference input cells for each calculation needed for these partial income statements. Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September. Budget Performance Report Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 2,500 pairs of shoes that required 8,750 units of material purchased at $8.20 per unit and 6,750 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $20,250. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.
1. Explain why a company needs these budgets used in #2 of your homework and how will they help the manager prepare for the next year? For example: ordering inventory, increasing or decreasing material costs so their sales will increase and cost decrease (labor, raw materials, or costs that pertain to operations)? Make sure to explain what each budget tells the manager.
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Cloie Boel, financial manager of Swimwear, Inc., is currently forecasting the company's a needs for the first half of next year. Swimwear's sales are highly seasonal, with most of its s occurring in the spring, just prior to the summer swimming season. The firm's marketing purtment forecasts sales as follows: Chapter 7 Business Planning and Short-Term Budgetary Systems November P 50,000 April May June July P925,000 725,000 475,000 300,000 December 75,000 300,000 la January February March 400,000 550,000 000 S 000 a Collection estimates obtained from the credit and collection departments aré as follows 20% of peso sales will be collected in the month of sale; 60% will be collected the mon following the sale; and 20% will be collected two months following the sale. Wages and materials costs related to production, and hence to sales. The production
Example 1: Purchases Budget Problem for Retailing Concern. Note that the format shown here is the same as would be used for the production and materials purchases budgets for a manufacturing concern. Lair Company is a retailer of leather handbags. The handbags are imported and are sometimes difficult to obtain on short notice. Therefore, the managers want to have 40% of the next month's estimated sales on hand at the end of the month. The Company's sales budget for the first quarter follows: Dollars Units January $200,000 2,000 February 240,000 2,400 March 300,000 3,000 The handbags cost $80 each and sell for $100. Prepare a purchases budget for February.
arrow_forward Question .(iii) To help achieve the budgeted sales for the year, Sampson is about to introduce bonuses for itssales staff. The bonuses will be an increasing percentage of the gross sales made, by eachsalesperson, above certain monthly targets.(iv) The company is using a new general ledger software package. The financial controller is impressedwith the new system, because management accounts are easily produced and allow detailedcomparisons with budgets and prior-period figures across product lines and geographical areas.The conversion to the new system occurred with a minimum of fuss. As it is a popular computerpackage, it required only minor modifications.(v) As part of the conversion, the position of systems administrator was created. This position isresponsible for all systems maintenance, including data backups and modifications. These taskswere the responsibility of the accountant.Required:For each of the scenarios above, explain how the components of…
using the cash budget Upon receipt of the budget, the team manager, Dannie Bruce, has now informed you that, inkeeping with industry players, the management of Sallat Household Furnishings haveindicated an industry requirement to maintain a minimum cash balance of $155,000 each month. He has also noted that management is very keen on keeping the gearing ratio of the business as low as possible and would therefore prefer to cushion any gaps internally using equity financing. Based on the budget prepared, will the business be achieving this desired industry target?Suggest three (3) internal strategies that may be employed by management to improve the organization’s monthly cash flow and militate against or reduce any possible shortfall reflected in the budget prepared. Each strategy must be fully explained.
1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018? 2. Which product category has the largest fraction of total budgeted indirect costs? 3. Given your answer in requirement 2, what advantage does Maclin's Corner gain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold?
SDIA wants to sell a T-shirt for fundraising and market it to its current 100 members in the group. The cost of each shirt is $10. Create a budgeting planning of the incoming revenue as well as expenses and that you think will occur through this fundraising event. Explain your reasonings behind the numbers you are using in the budgeting planning and tell us what your final assessment of the fundraising is.
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Hh2. Account
Cloie Boel, financial manager of Swimwear, Inc., is currently forecasting the company's a needs for the first half of next year. Swimwear's sales are highly seasonal, with most of its s occurring in the spring, just prior to the summer swimming season. The firm's marketing purtment forecasts sales as follows: Chapter 7 Business Planning and Short-Term Budgetary Systems November P 50,000 April May June July P925,000 725,000 475,000 300,000 December 75,000 300,000 la January February March 400,000 550,000 000 S 000 a Collection estimates obtained from the credit and collection departments aré as follows 20% of peso sales will be collected in the month of sale; 60% will be collected the mon following the sale; and 20% will be collected two months following the sale. Wages and materials costs related to production, and hence to sales. The production