Current Attempt in Progress Coronado Industries’ balance sheet at December 31, 2021, is presented below. CORONADO INDUSTRIES Balance Sheet December 31, 2021 Assets Current Assets Cash $8,850 Accounts receivable 86,730 Finished goods inventory (1,770 units) 28,320 Total current assets 123,900 Property, Plant, and Equipment Equipment $47,200 Less: Accumulated depreciation 11,800 35,400 Total assets $159,300 Liabilities and Stockholders' Equity Liabilities Notes payable $29,500 Accounts payable 53,100 Total liabilities 82,600 Stockholders' Equity Common stock $47,200 Retained earnings 29,500 Total stockholders' equity 76,700 Total liabilities and stockholders' equity $159,300 Budgeted data for the year 2022 include the following. 2022 Quarter 4 Total Sales budget (10,200 units at $32) $97,920 $326,400 Direct materials used 20,060 73,750 Direct labor 14,750 60,062 Manufacturing overhead applied 11,800 57,348 Selling and administrative expenses 21,240 88,500 To meet sales requirements and to have 2,950 units of finished goods on hand at December 31, 2022, the production budget shows 10,620 required units of output. The total unit cost of production is expected to be $18. Coronado uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $4,130 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $9,440 cash dividend. The company’s cash budget shows an expected cash balance of $32,280 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $10,620. $4,910 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Coronado expects to pay $9,440 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $4,130, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $8,496. Unpaid income taxes at December 31 will be $5,900. (a) Prepare a budgeted statement of cost of goods sold. CORONADO INDUSTRIES Budgeted Cost of Goods Sold choose the accounting period select an opening section name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount

Current Attempt in Progress Coronado Industries’ balance sheet at December 31, 2021, is presented below. CORONADO INDUSTRIES Balance Sheet December 31, 2021 Assets Current Assets Cash $8,850 Accounts receivable 86,730 Finished goods inventory (1,770 units) 28,320 Total current assets 123,900 Property, Plant, and Equipment Equipment $47,200 Less: Accumulated depreciation 11,800 35,400 Total assets $159,300 Liabilities and Stockholders' Equity Liabilities Notes payable $29,500 Accounts payable 53,100 Total liabilities 82,600 Stockholders' Equity Common stock $47,200 Retained earnings 29,500 Total stockholders' equity 76,700 Total liabilities and stockholders' equity $159,300 Budgeted data for the year 2022 include the following. 2022 Quarter 4 Total Sales budget (10,200 units at $32) $97,920 $326,400 Direct materials used 20,060 73,750 Direct labor 14,750 60,062 Manufacturing overhead applied 11,800 57,348 Selling and administrative expenses 21,240 88,500 To meet sales requirements and to have 2,950 units of finished goods on hand at December 31, 2022, the production budget shows 10,620 required units of output. The total unit cost of production is expected to be $18. Coronado uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $4,130 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $9,440 cash dividend. The company’s cash budget shows an expected cash balance of $32,280 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $10,620. $4,910 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Coronado expects to pay $9,440 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $4,130, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $8,496. Unpaid income taxes at December 31 will be $5,900. (a) Prepare a budgeted statement of cost of goods sold. CORONADO INDUSTRIES Budgeted Cost of Goods Sold choose the accounting period select an opening section name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount

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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Current Attempt in Progress

Coronado Industries’ balance sheet at December 31, 2021, is presented below.

CORONADO INDUSTRIES Balance Sheet December 31, 2021
Assets
Current Assets
Cash		$8,850
Accounts receivable		86,730
Finished goods inventory (1,770 units)		28,320
Total current assets		123,900
Property, Plant, and Equipment
Equipment	$47,200
Less: Accumulated depreciation	11,800	35,400
Total assets		$159,300
Liabilities and Stockholders' Equity
Liabilities
Notes payable		$29,500
Accounts payable		53,100
Total liabilities		82,600
Stockholders' Equity
Common stock	$47,200
Retained earnings	29,500
Total stockholders' equity		76,700
Total liabilities and stockholders' equity		$159,300

Budgeted data for the year 2022 include the following.

	2022
	Quarter 4	Total
Sales budget (10,200 units at $32)	$97,920	$326,400
Direct materials used	20,060	73,750
Direct labor	14,750	60,062
Manufacturing overhead applied	11,800	57,348
Selling and administrative expenses	21,240	88,500

To meet sales requirements and to have 2,950 units of finished goods on hand at December 31, 2022, the production budget shows 10,620 required units of output. The total unit cost of production is expected to be $18. Coronado uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $4,130 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $9,440 cash dividend.

The company’s cash budget shows an expected cash balance of $32,280 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $10,620. $4,910 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Coronado expects to pay $9,440 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $4,130, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $8,496. Unpaid income taxes at December 31 will be $5,900.

(a)

Prepare a budgeted statement of cost of goods sold.

CORONADO INDUSTRIES Budgeted Cost of Goods Sold choose the accounting period

select an opening section name
select an item		$enter a dollar amount
select an item		enter a dollar amount
select an item		enter a dollar amount

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Prepare a budgeted multiple-step income statement for 2022.

CORONADO INDUSTRIES Budgeted Income Statement

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