Direct material: Metal strips: S: 2 feet @ $2 per foot L: 2 feet @ $2 per foot Glass sheets: S: sheet @ $8 per sheet S Frame L Frame $ 4 $ 4 2 4 L: sheet @ $8 per sheet Direct labor: 0.1 hour @ $20 2 2 Production overhead: 0.1 direct-labor hour x $10 per hour 1 1 Total production cost per unit $ 9 $ 11 8. The predetermined overhead rate is $10 per direct-labor hour. The following production overhead costs are budgeted for 20x1. Indirect material Indirect labor Other overhead Depreciation Total overhead 1st Quarter 2nd Quarter $ 16,280 59,520 49,000 $ 17,280 63,520 54,000 3rd Quarter $ 18,280 67,520 4th Quarter Entire Year 59,000 $ 19,280 71,520 64,000 $ 71,120 262,080 226,000 38,000 $ 162,800 38,000 38,000 38,000 152,000 $ 172,800 $ 182,800 $ 192,800 $ 711,200 All of these costs will be paid in cash during the quarter incurred except for the depreciation charges. 9. Frame-It's quarterly selling and administrative expenses are $118,000, paid in cash. 10. Jackson anticipates that dividends of $68,000 will be declared and paid in cash each quarter. 11. Frame-It's projected balance sheet as of December 31, 20x0, follows: Cash Accounts receivable Inventory: Raw material Finished goods Plant and equipment (net of accumulated depreciation) Total assets Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 113,000 180,000 92,080 306,000 9,800,000 $ 10,491,080 $ 99,850 6,800,000 3,591,230 $ 10,491,080 Case 9-47 (Algo) Part 8: Prepare the budgeted income statement. 8. Prepare Frame-It's budgeted income statement for 20x1. (Ignore income taxes.) FRAME-IT COMPANY Budgeted Income Statement For the Year Ended December 31, 20x1 0
Direct material: Metal strips: S: 2 feet @ $2 per foot L: 2 feet @ $2 per foot Glass sheets: S: sheet @ $8 per sheet S Frame L Frame $ 4 $ 4 2 4 L: sheet @ $8 per sheet Direct labor: 0.1 hour @ $20 2 2 Production overhead: 0.1 direct-labor hour x $10 per hour 1 1 Total production cost per unit $ 9 $ 11 8. The predetermined overhead rate is $10 per direct-labor hour. The following production overhead costs are budgeted for 20x1. Indirect material Indirect labor Other overhead Depreciation Total overhead 1st Quarter 2nd Quarter $ 16,280 59,520 49,000 $ 17,280 63,520 54,000 3rd Quarter $ 18,280 67,520 4th Quarter Entire Year 59,000 $ 19,280 71,520 64,000 $ 71,120 262,080 226,000 38,000 $ 162,800 38,000 38,000 38,000 152,000 $ 172,800 $ 182,800 $ 192,800 $ 711,200 All of these costs will be paid in cash during the quarter incurred except for the depreciation charges. 9. Frame-It's quarterly selling and administrative expenses are $118,000, paid in cash. 10. Jackson anticipates that dividends of $68,000 will be declared and paid in cash each quarter. 11. Frame-It's projected balance sheet as of December 31, 20x0, follows: Cash Accounts receivable Inventory: Raw material Finished goods Plant and equipment (net of accumulated depreciation) Total assets Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 113,000 180,000 92,080 306,000 9,800,000 $ 10,491,080 $ 99,850 6,800,000 3,591,230 $ 10,491,080 Case 9-47 (Algo) Part 8: Prepare the budgeted income statement. 8. Prepare Frame-It's budgeted income statement for 20x1. (Ignore income taxes.) FRAME-IT COMPANY Budgeted Income Statement For the Year Ended December 31, 20x1 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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not use ai please
Transcribed Image Text:Direct material:
Metal strips:
S: 2 feet @ $2 per foot
L: 2 feet @ $2 per foot
Glass sheets:
S: sheet @ $8 per sheet
S Frame
L Frame
$ 4
$ 4
2
4
L: sheet @ $8 per sheet
Direct labor:
0.1 hour @ $20
2
2
Production overhead:
0.1 direct-labor hour x $10 per hour
1
1
Total production cost per unit
$ 9
$ 11
8. The predetermined overhead rate is $10 per direct-labor hour. The following production overhead costs are budgeted
for 20x1.
Indirect material
Indirect labor
Other overhead
Depreciation
Total overhead
1st Quarter
2nd Quarter
$ 16,280
59,520
49,000
$ 17,280
63,520
54,000
3rd Quarter
$ 18,280
67,520
4th Quarter
Entire Year
59,000
$ 19,280
71,520
64,000
$ 71,120
262,080
226,000
38,000
$ 162,800
38,000
38,000
38,000
152,000
$ 172,800
$ 182,800
$ 192,800
$ 711,200
All of these costs will be paid in cash during the quarter incurred except for the depreciation charges.
9. Frame-It's quarterly selling and administrative expenses are $118,000, paid in cash.
10. Jackson anticipates that dividends of $68,000 will be declared and paid in cash each quarter.
11. Frame-It's projected balance sheet as of December 31, 20x0, follows:
Cash
Accounts receivable
Inventory:
Raw material
Finished goods
Plant and equipment (net of accumulated depreciation)
Total assets
Accounts payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
$ 113,000
180,000
92,080
306,000
9,800,000
$ 10,491,080
$ 99,850
6,800,000
3,591,230
$ 10,491,080
Case 9-47 (Algo) Part 8: Prepare the budgeted income statement.
8. Prepare Frame-It's budgeted income statement for 20x1. (Ignore income taxes.)
FRAME-IT COMPANY
Budgeted Income Statement
For the Year Ended December 31, 20x1
0
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