Fixed Budget ReportFor Year Ended December 31, 2019Sales ....$3,000,000Cost of goods soldDirect materials .Direct labor......$975,000225,000Machinery repairs (variable cost)60,000Depreciation-Plant equipment (straight-line) .Utilities ($45,000 is variable) .300,000195,000....Plant management salaries200,0001,955,000Gross profit...1,045,000Selling expensesPackaging..75,000Shipping...105,000Sales salary (fixed annual amount) .250,000430,000General and administrative expensesAdvertising expense125,000Salaries.....241,000Entertainment expense90,000456,000$ 159,000Income from operationsa. Classify all items listed in the fixed budget as variable or fixed. Also determine theiramounts per unit or their amounts for the year, as appropriate.b. Identify the unit variable costs in the format of variable costing, according to yourfindings in part ac. Organize a template for variable costing income statements in which the sales volumeis a variable. Test your template for 15,000 units sales volume to see if you get thesame income as stated aboved. Find the breakeven point and provide the income statement at break evene. Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000 3. Phoenix Company's 2019 master budget included the following fixed budget report. It is basedon an expected production and sales volume of 15,000 units.

Name: Fixed Budget ReportFor Year Ended December 31, 2019Sales ....$3,000,0
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Description: Fixed Budget ReportFor Year Ended December 31, 2019Sales ....$3,000,000Cost of goods soldDirect materials .Direct labor......$975,000225,000Machinery repairs (variable cost)60,000Depreciation-Plant equipment (straight-line) .Utilities ($45,000 is va

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Business

Accounting

Fixed Budget Report For Year Ended December 31, 2019 Sales ... Cost of goods sold Direct materials ..... Direct labor..... $975,000 225,000

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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11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases The company predicts that 5 percent of its credit sales will never be collected 35 percent of its sales will be collected in the month of the sale, and the re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements…
Accounting This is the budget for the year ended 30 April 2021 for company XTZ Total production & sales = 2400units Selling price per unit = $1200 Variable manufacturing costs : Direct labour = $192 ; Direct material = $288 ; Overheads = $96 Fixed manufacture overheads = $216,960 Other : Fixed marketing & admin cost = $144,000 Sales commission = 5% 1) Calculate the total marginal income and net profit & loss if all units are sold 2) Use the marginal income ratio to work out the break even value 3) Calc the new total marginal income & net profit &loss if an increase of $50,000 in advertising costs increases sales by 200units 4) If the company earns a net profit of $298,920 ; How many units were sold 5) If expected sales volume is 2400units, what is the sales price per unit which will allow the company to break even?
The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation $ 1,680,000 420,000 Total assets $ 112,000 964,320 275,800 Liabilities Accounts payable Loan payable 911,512 Long-term note payable Equity 1,260,000 Common stock Retained earnings $ 3,523,632 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 562,800 12,000 1,400,000 938,000 610,832 $ 1,974,800 1,548,832 $ 3,523,632 a. Sales for March total 57,400 units. Budgeted sales in units follow: April, 57,400; May, 54,600; June, 56,000; and July, 57,400. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company…
n 2 Feb. NI $1,876 -.... quarter of 2018: HOLLY COMPANY Budgeted Income Statement For the Quarter Ended March 31, 2018 Total March February Net Sales Revenue January $ 11,520 $ 29,120 (20% increase per month) $ 8,000 $ 9,600 Cost of Goods Sold (40% of sales) 11,648 3,840 4,608 3,200 Gross Profit 6,912 17,472 4,800 5,760 S&A Expenses 2,960 3,152 8,912 ($2,000 + 10% of sales) 2,800 Operating Income 3,760 8,560 2,000 2,800 Income Tax Expense (30% of operating income) 2,568 600 840 1,128 Net Income $ 1,400 $ 1,960 $ 2,632 $ 5,992 Holly Company is considering two options. Option 1 is to increase advertising by $700 per month. Option 2 is to use better-quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 45% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 30% per month rather than 20%. Requirements 1. Prepare budgeted income statements for both…
Pulham Company is preparing its direct labor budget for 2019 from the following production budget based on a calendar year: Quarter 1 2 3 4 Units 60,000 30,000 45,000 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1. Prepare a direct labor budget for 2019. V First Quarter PULHAM COMPANY Direct Labor Budget For the Year Ended December 31, 2019 Second Quarter Third Quarter Fourth Quarter Total
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Month ($) Wages ($) From the following information, prepare a monthly cash budget for the three months ending 31st December 2019. Sales ($) Materials Other Expenses ($) Jun. (A) 3,000 1,800 650 385 Jul. (A) 3,250 2,000 750 385 Aug. (A) 3,500 2,400 750 425 Sep.(A) 3,750 2,250 .750 475 Oct. (E) 4,000 2,300 800 500 Nov. (E) 4,250 2,500 900 550 Dec. (E) 4,500 2,600 1,000 575 (A) Actual; (E) - Estimated. = The credit terms are as follows: • Sales -10% of sales are in cash. On average, 50% of credit sales are paid in the next month, while the other 50% are paid two months after the sale. • Creditors for material are paid 2 months after purchase. • Wages and other expenses are paid the same month. The cash and bank balance on 1st October is expected to be $1,500. Other information is given as follows: • Plant and machinery are to be installed in August at a cost of $24,000. This sum will be paid in monthly installments of $500 each from 1st October. • Dividends from investments amounting to…
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