Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,500 units quarter 1: 22.200 units quarter 2 Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3% Fixed costs per quarter: sales salaries $10,500, office salaries $6,250, depreciation $4,340, insurance $2,000, utilities $860, and repairs expense $690. 4. Unit selling price: $24. 2 3. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense)

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,500 units quarter 1: 22.200 units quarter 2 Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3% Fixed costs per quarter: sales salaries $10,500, office salaries $6,250, depreciation $4,340, insurance $2,000, utilities $860, and repairs expense $690. 4. Unit selling price: $24. 2 3. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 17,000 24,000 18,000 19,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $1.80. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $38,000 per quarter, and depreciation of $18,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $6,200 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses Total fixed selling and administrative expenses Total selling and administrative…
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $178,970 budgeted expenses include $120,800 in variable expenses for desks and $19,170 in variable expenses for chairs, as well as $39,000 of fixed expenses. Actual fixed expenses total $40,400. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income. For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income 151 71 Actual Results 157 79 $ 202,340 $ 208,810 36,210 41,475 178,970 187,670 Variances Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) $6,470 F 5,265 P 8,700 U $ 59,580 $ 62,615 $ 3,035 F BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance…
Sheridan Company has accumulated the following budget data for the year 2022. 1. 2. 3. 4. 5. Sales: 31,220 units, unit selling price $86. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $8 per direct labor hour. Inventories (raw materials only): beginning, 10.120 pounds; ending. 15.390 pounds. Selling and administrative expenses: $170.000; interest expense: $30,000. Income taxes: 20% of income before income taxes.
Sunland Company has accumulated the following budget data for the year 2027. 1. 2. 3. 4. 5. Sales: 31,450 units, unit selling price $85. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $6 per direct labor hour. Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,250 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 20% of income before income taxes.
ABC Company's actual unit sales in the current year for January, February, and March were 16,500, 13,500, and 19,500 units, respectively. Current year selling price is $20. An analysis of general economic trends and specific initiatives at ABC forecasts increases for the coming budget year: sales volume by 10% and sales price by 5%. Required: Prepare ABC Company's budgeted unit sales and total sales volume for the first quarter of the coming year. Current sales (units) Budgeted volume increase Budgeted sales (units) Budgeted selling price Budgeted total sales January $ 0 % February $ 0 % $ March 0 % $ Total 0 %
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,430 budgeted expenses include $123,670 in variable expenses for desks and $18,760 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,900. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income 149 67 Actual Results 34,170 177,430 155 75 $ 201,150 $ 207,700 39,375 186,840 $ 57,890 $ 60,235 Variances Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) $ 6,550 F 5,205 F 9,410 U $ 2,345 F BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance…
Top executive officers of Rundle Company, a merchandising firm, are preparing the next year's budget. The controller has provide everyone with the current year's projected income statement. Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $ 1,998,800 1,425,000 475,000 266,000 $ 209,000 Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales a fixed cost of $76,000. The president has announced that the company's goal is to increase net income by 10 percent. Required The following items are independent of each other: a. Prepare a pro forma income statement. What percentage increase in sales would enable the company to reach its goal? b. The market may become stagnant next year, and the company does not expect an increase in sales revenue. The production manager believes that an improved production procedure can cut cost of goods sold by 1 percent. Prepare a…
Bailee Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 33,000 units quarter 1; 35,000 units quarter 2. 2. Variable costs per dollar of sales: Sales commissions $33,000 quarter 1; $35,000 quarter 2, delivery expense $13,200 quarter 1 and $14,000 quarter 2, and advertising $19,800 quarter 1 and $21,000. 3. Fixed costs per quarter: Sales salaries $15,000, office salaries $6,000, depreciation $4,200, insurance $1,500, utilities $800, and repairs expense $600. 4. Unit selling price: $20. Instructions: Prepare a selling and administrative expense budget by quarters for the first 6 months of 201
Given the following information, prepare an annual income statement budget for the Great Student Corporation as of 12/31/2018. 1. Sales: 1000 Units; Price $1,000 per Unit 2. Cost of Goods Sold (COGS): 60% of Sales 3. Wages: 15 Employees; Average Cost per Employee $15000 4. SGA Expenses: 12% of Sales 5. Depreciation: Straight Line $4000 per year 6. Interest Expense: 1% of Sales What was the company's budgeted gross profit? O A. $403,000 O B. $400,000 O C. $41,000 O D. $359,000
Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data: Sales commissions 7% of sales Sales manager's salary $62,000 per month Advertising expense $70,000 per month Shipping expense 2% of sales Miscellaneous selling expense $2,500 per month plus 1/2% of sales Podism Company Monthly Selling Expense Budget Sales volume $270,000 $350,000 $480,000 Variable expense: Sales commissions х X Shipping expense X Miscellaneous selling expense Total variable expense Fixed expense: Sales manager's salary x $ Advertising expense X Miscellaneous selling expense Total fixed expense %$4 Total selling expense $ X
Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $13 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 18 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar. Oliver Company Budgeted Income Statement For the Coming Year $fill in the blank 2 fill in the blank 4 $fill in the blank 6 fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14 $fill in the blank 16 Check My Work3
Echo Amplifiers prepared the following sales budget for the first quarter of 2018: Jan. Feb. Mar. Units BOD Sales price $100 $100 Budgeted sales $80,000 $130,000 $100,000 It also has this additional information related to its expenses: Direct material per unit Direct labor per unit Variable manufacturing overhead per hour Fixed manufacturing overhead per month Sales commissions per unit Sales salaries per month Delivery expense per unit Factory utilities per month Administrative salaries per month Marketing expenses per month Insurance expense per month Depreciation expense per month Budgeted Sales in Units Variable Expenses Sales Commissions 1,300 Delivery Total Variable Expenses Fixed Expenses Sales Salaris $100 Administrative Salaries Marketing Expenses Insurance Expense Depreciation Expense 1,500 Total Fixed Expenses Total Selling and Administrative Expenses $1.50 2 Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all…