Revenue Budget: The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget. To prepare: The revenue budget for March 2014.

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Answer 1

Question

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

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PROBLEM 2 On July 1, 2022, LTU Contracting, Inc. purchased a new Peiner SK575 Tower Crane for a total cost of $875,000. The crane has an estimated useful life of five (5) years. For financial reporting (book) purposes, the company utilizes straight line depreciation. For tax purposes, the equipment is depreciated over five years utilizing the 200% declining balance method. A. Prepare a table that computes the book and tax depreciation for each year of the useful life and determine the difference in book value between each method at the end of each year. B. On July 1st, 2025, the company is considering selling the crane for $500,000. Compute what the gain or loss would have been at that time for both book and tax purposes.

Answer 2

Question

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Answer 6

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

Answer 7

Chapter 6, Problem 6.30P

1.a

To determine

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

To prepare: The revenue budget for March 2014.

Answer 8

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

Answer 9

1.b.

To determine

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

To prepare: The production budget for March 2014.

Answer 10

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

Answer 11

1.c.

To determine

Direct Materials Usage Budget:

The direct materials usage budget is prepared to estimate the number of materials used in the production to produce a product. The budget shows the number of materials which are required to produce each finished unit, the beginning, and the ending inventory.

To prepare: The direct materials usage budget and the direct materials purchases budget.

Answer 12

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

Answer 13

1.d.

To determine

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

Answer 14

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

Answer 15

1.e.

To determine

To prepare: The manufacturing overhead costs budget.

Answer 16

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

Answer 17

1.f.

To determine

To prepare: The ending inventories budget for direct materials and for finished goods.

Answer 18

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

Answer 19

1.g.

To determine

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.

Answer 20

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Answer 21

2.

To determine

To explain: The two areas where continuous improvement can be incorporated.

Answer 22

Expert Solution & Answer

Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

Ch. 6 - What are the four elements of the budgeting cycle?Ch. 6 - Define master budget.Ch. 6 - Strategy, plans, and budgets are unrelated to ore...Ch. 6 - Budgeted performance is a better criterion than...Ch. 6 - Production managers and marketing managers are...Ch. 6 - Budgets meet the cost-benefit test. They force...Ch. 6 - Define rolling budget. Give an example.Ch. 6 - Outline the steps in preparing an operating...Ch. 6 - The sales forecast is the cornerstone for...Ch. 6 - Prob. 6.10Q

Direct Labor Budget: The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour. To prepare: The direct manufacturing labor costs budget.

To prepare: The manufacturing overhead costs budget.

To prepare: The ending inventories budget for direct materials and for finished goods.

Cost of Goods Sold Budget: The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget. To prepare: The cost of goods sold budget for March 2017.

To explain: The two areas where continuous improvement can be incorporated.

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Chapter 6 Solutions

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The direct manufacturing labor costs budget.

Cost of Goods Sold Budget:

The cost of goods sold budget is the budget prepared to estimate the direct materials, labor and overhead for the coming financial period. This budget is the part of the operating budget.

To prepare: The cost of goods sold budget for March 2017.