On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.Sales units:Ending raw materials inventory:Ending finished goods inventory:Third-quarter production:40% of the next quarter's production requirements.First quarter 5,400; second quarter 6,100; third quarter 7,900.25% of the next quarter's expected sales units.7,430 units.The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds ofraw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound.Prepare a production budget by quarters for the 6-month period ended June 30, 2020.CARLA VISTA COMPANYProduction Budget1QuarterSix2Months

Production Budget For the Six Months Ending June 30, 2020 12Six monthsExpected Unit Sales54006100…

Answered: On January 1, 2020, the Carla Vista…

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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Subject : Accounting
How might the definition of “probable” affect determining whether a contract exists under IFRS as compared to U.S. GAAP?
X co, purchased 80% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 what is the amount of income from subsidiary reported in parents co income statement on 31/12/2020 Select one: a. 122,800 b. 102,000 c. 107,200 d. 128,000
The income statement for the first quarter of 2019 was as follows: Income Statement For the Quarter Ended March 31, 2019 Sales Cost of goods sold Gross profit Operating expenses ales salaries Rent expense Depreciation Utilities Miscellaneous Total operating expenses Net income $52,000 24,000 12,000 3,600 12,800 $720,000 396,000 324,000 104,400 $219,600 Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2020.
Sales budget data for Paige Company are given in BE9.2. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020.
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A company is preparing budgets for the quarter ending Mar 31, 2020.Jan 10,000 unitsFeb 50,000 unitsMar 30,000 unitsApr 60,000 unitsMay 40,000 unitsThe management of this company assumes the following:1) Selling price is $5.2) On Dec 31, 2019, the finished goods totaled 3,000 units. Finished goods at the end of each month must be 20% of the following month’s budgeted sales.3) All sales are on account. 70% of the credit sales are collected in the month of sale, 25% in the month following sale, and the remainders are uncollectible.4) On Dec 31, 2019, the cash balance is $10,000. Q: The company predicts only 50% of the budgeted sales in units can be achieved. Moreover, the company decides to cut the selling price to $3, and the company expects 50% of credit sales can be collected in the month of sale, 20% in the month following sale, the reminders are not collectible. The other things being the same. Please prepare the cash collection and required production (in units) for January,…
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Sunland Inc. is preparing its annual budgets for the year ending December 31, 2025. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 480,000 240,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 36,000 18,000 Beginning finished goods units 30,000 12,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 36,000 12,000 Beginning direct materials pounds 48,000 18,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $672,000 for product JB 50 and $432,000 for product JB 60, and administrative expenses of $648,000 for product JB 50 and $408,000 for product…
On the basis of the projected proceeding data and projections prepare the following for Year ended ended 31 December 2020: 1. Sales budget.2. Production budget.3. Labour cost budget.
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