70. O wp 6-43 (similar to) Question Help Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2020, Slatis's management accountant gathered the following data to prepare budgets for January 2021 (Click the icon to view the budgeted balances and additional information pertaining to this budget.) Data Table con to view the additional variable and food manufacturing cost information) (Click the icon to view the materials and labor requirements, the direct materials inventories, and additional inventory Information) (Click the icon to view the following selected January 2021 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory) Read the requirements Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables Schedule of Cash Collections From December 2020 sales From January 2021 sales Total collections Data Table Budgeted balances at January 31, 2021 are as follows: Cash ? ? ? Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity $ 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ Budgeted sales Budgeted materials purchases 11,000 1,690,000 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $15,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly Print Dono Please enter your username and password User Name Password: Log in Accounts receivable ? $ Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ 11,000 Budgeted sales 1,690,000 Budgeted materials purchases 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $15,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Slatts's board of directors voted to pay a $140,000 dividend to stockholders on January 31, 2021 Print Done User Name Password Log in 1 of 1 (0 complete) as. Slatts manufactures a single model, the ountant gathered the following data to ances and additional information pertaining to (Click the icon to view the materials and labor inventories, and additional inventory information.) (Click the icon to view the following selected Ja material purchases, Direct manufacturing labor cost Ending inventory.) Read the requirements. able and fixed manufacturing cost January 2021. Show supporting schedules for the calculation of collection of receivables and payments More Info X Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Slatts combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done and then click Check Answer Clear All Puno your name and wond User Name Password: T 6 - Problem b-43 1 of 1 (0 complete) Data Table Direct materials Wood 8 board feet (b.f.) per snowboard Fiberglass 6 yards per snowboard Direct manufacturing labor 6 hours per snowboard atts CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 r board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end anuary 2021 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory Ending Inventory January January 1, 2021 31, 2021 2,010 b.f. 1,510 b.1. 1,010 yards 2,500 yards Wood Fiberglass Wood Other data include: 2020 Unit Price 2021 Unit Price $ 29.00 per b. $ 31.00 per b.f. Fiberglass $ 5.00 per yard $ 10.00 per yard Direct manufacturing labor $ 25.00 per hour $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, Is $240.00 Assume Slatts uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations Print Done Chec Please wilt youtube and password User Password Aya Rabea er 6 - Problem 6-43 1 of 1 (0 complete) HW rence Revenue Budget For January 2021 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards ht Total Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Physical Units Budget To be used in production 16,000 b.f. 12,000 yards Add target ending inventory 2,500 yards Total requirement 17,510 b. 14,500 yards Deduct beginning inventory 2,010 b. 1,010 yards Purchases to be made 15,500 13,490 yards Cost Budget Purchases $ 480,500 $ 134,900 1,510.1. b. $ 615,400 Direct Manufacturing Labor Costs Budget For January 2021 Print Done ock Answ Plan your name and password Us Names Password r 6 - Problem 6-43 1 of 1 (0 complete) 1 ence $ 480,500 $ 134.900 615,400 Purchases Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Produced per Unit Hours Wage Rate 2,000 6 12,000 $ 26 Total $ 312,000 Snowboards X al labor hours 12,000 Variable manufacturing overhead rate 10 Variable manufacturing overhead costs = $ 120,000 Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood Fiberglass 1.510 $ $ 31 10 2,500 46,810 25,000 Finished goods Snowboard Total ending inventory 700 $ 538 375,200 447,010 Print Done sock Per your name and password User Name ds. Slatts manufactures a single model, the untant gathered the following data to nces and additional information pertaining to (Click the icon to view the materials an inventories, and additional inventory informa (Click the icon to view the following sele material purchases, Direct manufacturing lat Ending inventory.) able and fixed manufacturing cost * Requirements X OP ef 1. oll 2. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Slatts is interested in maintaining a minimum cash balance of $160,000 at the end of each month. Will Slatts be in a position to pay the $140,000 dividend on January 31? Why do Slatts's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders equity. 3. 4. Print Done and then click Check Answer. Clear All Pete your name and pasword User Name Password: Pard 70. O wp 6-43 (similar to) Question Help Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2020, Slatis's management accountant gathered the following data to prepare budgets for January 2021 (Click the icon to view the budgeted balances and additional information pertaining to this budget.) Data Table con to view the additional variable and food manufacturing cost information) (Click the icon to view the materials and labor requirements, the direct materials inventories, and additional inventory Information) (Click the icon to view the following selected January 2021 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory) Read the requirements Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables Schedule of Cash Collections From December 2020 sales From January 2021 sales Total collections Data Table Budgeted balances at January 31, 2021 are as follows: Cash ? ? ? Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity $ 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ Budgeted sales Budgeted materials purchases 11,000 1,690,000 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $15,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly Print Dono Please enter your username and password User Name Password: Log in Accounts receivable ? $ Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ 11,000 Budgeted sales 1,690,000 Budgeted materials purchases 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $15,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Slatts's board of directors voted to pay a $140,000 dividend to stockholders on January 31, 2021 Print Done User Name Password Log in 1 of 1 (0 complete) as. Slatts manufactures a single model, the ountant gathered the following data to ances and additional information pertaining to (Click the icon to view the materials and labor inventories, and additional inventory information.) (Click the icon to view the following selected Ja material purchases, Direct manufacturing labor cost Ending inventory.) Read the requirements. able and fixed manufacturing cost January 2021. Show supporting schedules for the calculation of collection of receivables and payments More Info X Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Slatts combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done and then click Check Answer Clear All Puno your name and wond User Name Password: T 6 - Problem b-43 1 of 1 (0 complete) Data Table Direct materials Wood 8 board feet (b.f.) per snowboard Fiberglass 6 yards per snowboard Direct manufacturing labor 6 hours per snowboard atts CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 r board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end anuary 2021 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory Ending Inventory January January 1, 2021 31, 2021 2,010 b.f. 1,510 b.1. 1,010 yards 2,500 yards Wood Fiberglass Wood Other data include: 2020 Unit Price 2021 Unit Price $ 29.00 per b. $ 31.00 per b.f. Fiberglass $ 5.00 per yard $ 10.00 per yard Direct manufacturing labor $ 25.00 per hour $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, Is $240.00 Assume Slatts uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations Print Done Chec Please wilt youtube and password User Password Aya Rabea er 6 - Problem 6-43 1 of 1 (0 complete) HW rence Revenue Budget For January 2021 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards ht Total Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Physical Units Budget To be used in production 16,000 b.f. 12,000 yards Add target ending inventory 2,500 yards Total requirement 17,510 b. 14,500 yards Deduct beginning inventory 2,010 b. 1,010 yards Purchases to be made 15,500 13,490 yards Cost Budget Purchases $ 480,500 $ 134,900 1,510.1. b. $ 615,400 Direct Manufacturing Labor Costs Budget For January 2021 Print Done ock Answ Plan your name and password Us Names Password r 6 - Problem 6-43 1 of 1 (0 complete) 1 ence $ 480,500 $ 134.900 615,400 Purchases Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Produced per Unit Hours Wage Rate 2,000 6 12,000 $ 26 Total $ 312,000 Snowboards X al labor hours 12,000 Variable manufacturing overhead rate 10 Variable manufacturing overhead costs = $ 120,000 Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood Fiberglass 1.510 $ $ 31 10 2,500 46,810 25,000 Finished goods Snowboard Total ending inventory 700 $ 538 375,200 447,010 Print Done sock Per your name and password User Name ds. Slatts manufactures a single model, the untant gathered the following data to nces and additional information pertaining to (Click the icon to view the materials an inventories, and additional inventory informa (Click the icon to view the following sele material purchases, Direct manufacturing lat Ending inventory.) able and fixed manufacturing cost * Requirements X OP ef 1. oll 2. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Slatts is interested in maintaining a minimum cash balance of $160,000 at the end of each month. Will Slatts be in a position to pay the $140,000 dividend on January 31? Why do Slatts's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders equity. 3. 4. Print Done and then click Check Answer. Clear All Pete your name and pasword User Name Password: Pard