January 1,100 May 1,6501,800FebruaryMarchApril950 June900 July1,5001,400Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December(January's beginning inventory) is 1,430 units, which is consistent with this policy.Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost isincurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of$13,500 will be paid in June,a. Prepare a monthly production schedule for January through June. (Enter all values as positive value.)Ace Battery CompanyProduction ScheduleForecasted unit salesDesired ending inventoryBeginning inventoryUnits to be producedUnits producedMaterial costLabour costOverhead costInterestEmployee bonusesJanuaryTotal cash paymentsFebruaryDecemberJanuaryLAb. Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December.Ace Battery CompanySummary of Cash paymentsFebruaryMarch$MarchLAApril11LAMay[TOJuneAprilBAMayJulyJune][

The formula used to determine the units produced is as follows:Units to be produced = Expected Sales…

January 1,100 May February 950 June March April 900 July 1,400 Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December January's beginning inventory) is 1,430 units, which is consistent with this policy. 1,650 1,800 1,500 Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost is ncurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of $13,500 will be paid in June. . Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Ace Battery Company Production Schedule Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments January December February January $ . Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December. Ace Battery Company Summary of Cash payments February March $ March $ April May $ April June $ $ May July $ June

January 1,100 May February 950 June March April 900 July 1,400 Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December January's beginning inventory) is 1,430 units, which is consistent with this policy. 1,650 1,800 1,500 Materials cost $12 per unit and are paid for in the month after production. Labour cost is $5 per unit and is paid in the month the cost is ncurred. Overhead costs are $7,500 per month. Interest of $8,300 is scheduled to be paid in March, and employee bonuses of $13,500 will be paid in June. . Prepare a monthly production schedule for January through June. (Enter all values as positive value.) Ace Battery Company Production Schedule Forecasted unit sales Desired ending inventory Beginning inventory Units to be produced Units produced Material cost Labour cost Overhead cost Interest Employee bonuses Total cash payments January December February January $ . Prepare a monthly summary of cash payments for January through June. Ace produced 900 units in December. Ace Battery Company Summary of Cash payments February March $ March $ April May $ April June $ $ May July $ June

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

See similar textbooks

Similar questions

Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand on July 31. Inventory-is 470 units on July 1. Ming has found from past experiencethat 10% of all units produced do not pass final inspection and must therefore be destroyed.How many units should Ming plan to produce in July? a. 6,890 b. 7,062 c. 7,133 d. 7,186
January 1,800 February 1,650 March 1,600 April 2,100 2,350 2,500 2,200 May June July Volt Battery always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 2,160 units, which is consistent with this policy. Materials cost $13 per unit and are paid for in the month after purchase. Labor cost is $6 per unit and is paid in the month the cost is incurred. Overhead costs are $11,000 per month. Interest of $9,000 is scheduled to be paid in March, and employee bonuses of $14,200 will be paid in June. a. Prepare a monthly production schedule for January through June. Note: Input all amounts as positive values except Beginning inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain to enter 0 wherever required. Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced Volt Battery…
Fi
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: ces March April May June 12,000 14,000 11,500 10,000 Wright maintains an ending inventory for each month in the amount of one times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in the month incurred. Fixed overhead is $15,000 per month. Dividends of $20,600 are to be paid in May. The firm produced 11,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory. Note: Input all amounts as positive values except Beginning inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain…
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March 15,000 April 17,000 May 14,500 June 13,000 Wright maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $16,500 per month. Dividends of $20,900 are to be paid in May. The firm produced 14,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory.