MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters (My Accounting Lab)

11th Edition

ISBN: 9780133877502

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 22, Problem P22.48BPGB

Preparing an operating budget- sales, production, direct materials, direct labor, overhead, COGS, and S$A expense budget

The Haney Batting Company manufactures wood baseball bats. Haney’s two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Haney sells the bats to sporting goods stores, and all sales are on account. The youth but sells for $35; the adult bat sells for $55. Haney’s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Haney’s balance sheet for December 31, 2016.

Chapter 22, Problem P22.48BPGB, Preparing an operating budget- sales, production, direct materials, direct labor, overhead, COGS,

Other data for Haney Batting Company for the first quarter of 2017:

Budgeted sales are 1,300 youth bats and 3,100 adult bats.
Finished Goods Inventory on December 31 consists of 200 youth bats at $11 each and 750 adult bats at $19 each.
Desired ending Finished Goods Inventory in 250 youth bats and 550 adult bats; FIFO inventory costing method is used.
Direct material cost is $13 per youth bat and $15 per adult bat.
Desired ending Raw Materials Inventory is $9,000 (indirect materials are insignificant and not considered for budgeting purposes).
Each bat requires 0.3 hours of direct labor; direct labor cots average $32 per hour.
Variable manufacturing overhead is $0.40 per bat.
Fixed selling and administrative expenses include $14,000 per quarter for salaries; $2,500 per quarter for rent; $1,900 per quarter for insurance; and $100 per quarter for depreciation.
Variable selling and administrative expenses include supplies at 1% of sales.

Requirements

PrepareHaney’s sales budget for the first quarter of 2017.
Prepare Haney’s production budget for the first quarter of 2017.
Prepare Haney’s direct materials, direct labor, budget, and manufacturing overhead budget for the first quarter of 2017. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours.
Prepare Haney’s cost of goods sold budget for the first quarter of 2017.
Prepare Haney’s selling and administrative expense budget for the first quarter of 2017.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 22, Problem P22.47APGA

Chapter 22, Problem P22.49BPGB

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Chapter 22 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters (My Accounting Lab)

Ch. 22 - Prob. 1QC Ch. 22 - A company prepares a five-year budget. This budget...Ch. 22 - Which of the following is the cornerstone of the...Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - The budgeted income statement is part of which...Ch. 22 - Prob. 9QC Ch. 22 - Suppose Mallcentral sells 1,000 hardcover books...

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