### Budget Analysis and Cash Distribution for Selling and Administrative Expenses**Assume for this question only:**SixthZ has provided budget information in the table below. Do not worry about whether anything is calculated correctly; just use the numbers below as necessary. Calculate the February cash distributions for selling and administrative expenses.#### Budget Breakdown:| Description | Value | Unit ||--------------------------------------------------|----------------|------------|| **Budgeted Treehouse Sales for January** | 35 | Treehouses || **Budgeted Treehouse Sales for February** | 55 | Treehouses || **Budgeted Treehouse Sales for March** | 75 | Treehouses || **Budgeted Required Production for January** | 45 | Treehouses || **Budgeted Required Production for February** | 65 | Treehouses || **Budgeted Required Production for March** | 85 | Treehouses || **Variable Selling & Administrative Expenses** | $75 | Per Unit || **Fixed Selling & Administrative Expenses** | $10,000 | Per Month || **Depreciation for Manufacturing Buildings** | $1,500 | Per Month || **Depreciation for Executive Buildings** | $500 | Per Month |**Calculation Options:**-  $14,375-  $14,875-  $14,125-  $13,625### Detailed Analysis for February:1. **Variable Selling & Administrative Expenses:** - Sales for February: 55 Treehouses - Variable Cost per Treehouse: $75 - Total Variable Costs: $ 55 \times 75 = 4,125 $2. **Fixed Selling & Administrative Expenses:** - Fixed Cost: $10,0003. **Depreciation:** - Manufacturing Buildings: $1,500 - Executive Buildings: $500 - Total Depreciation Cost: $ 1,500 + 500 = 2,000 $**Total February Cash Distribution Calculation:**\[ 4,125 (\text{Variable Costs}) + 10,000 (\text{Fixed Costs}) + 2,000 (\text{Depreciation}) = 16,125 \]Note: The above steps describe how to calculate

Selling and administrative expenses refer to those expenses incurred after the completion of…

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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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Help Sa Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 4.600 tenant-days, but it actual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Fixed element per Variable element month $ 0 per tenant-day $ 31.10 $ 3,600 200 $ 7.10 11.90 4.10 0.50 8,600 8,400 $ 20,800 $ 23.60 $ 108,380 $ 23,560 $ 36,796 $ 19,310 $ 9,152 The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be…
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You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $56,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 71,200 $ 440,000 November $ 73,400 December $ 86,200 $ 576,000 $ 639,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $315,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $181,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $522,000…
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Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rooney's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $77,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: A) The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 30,500 October 20,500 August 71,000 November 7,000 September 40,000 December 7,500 The selling price of the beach umbrellas is $10 per unit. B) All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $200,000. C) The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. D) Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50%…
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