Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A cash budget is prepared for a retail company. The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill

image text in transcribedimage text in transcribedimage text in transcribed
A cash budget is prepared for a retail company. The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts (Note: Omit 000's in your answers). Quarter 2 3 4 Year Cash balance, beginning $ 8 Add: Collections from customers 95 323 Total cash available before current financing 69 Deduct: Disbursements: Purchase of inventory 32 48 35 Operating expenses 30 32 114 Equipment purchases 6 9 38 Dividends 2 2 2 2 Total disbursements 89 Excess (deficiency) of cash available over disbursements (2) 9 Financing: Borrowings 12 Repayments (including interest)* (16) Total financing Cash balance, ending *Interest will total $1,000 for the year.Gallop Corporation prepared the following report for the first quarter of this year: Sales (@ $2,888 per unit) $7,288,888 Less: Cost of goods sold 3,272,888 Gross margin 4,888,888 Less: Selling expenses $1,863,488 Administrative expenses 1,888,888 2,143,488 Income $1,864,688 Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: . Fixed portion of the cost of goods sold for the quarter amounted to $1,036,000. - Of the selling expenses, 20% was variable with respect to the number of units. - All ofthe administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Cost of goods sold per quarter Selling expenses Y = per quarter 2. Re-do and prepare the above income statement using a contribution margin approach. (Do not round intermediate calculations.) Tecumseh Inc. manufactures a product that passes through two production processes. A quantity schedule for a recent month for the first process follows: Quantity Schedule Units to be accounted for: Work in process, May 1 (68% materials, 75% conversion cost added last month) 22,568 Started into production 187,508 Total units 216,668 Costs in the beginning work-in-process inventory of the first processing department were materials, $4,500; and conversion cost, $15,700. Costs added during the month were materials, $66,000; and conversion cost, $389,710. Required: 1. Assume that the company uses the weighted average cost method of accounting for units and costs. Determine the equivalent units for the month for the first process. Units accounted for as follows: Transferred to the next process 199,500 Work in process, May 31 (all materials, 60% conversion cost added this month) Total units and equivalent units of production 210,000 10,500 2. Compute the costs per equivalent unit for the month for the rst process. (Note: Round your answers to 3 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Managerial Concepts

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

7th Canadian Edition

1119310296, 978-1119310297

More Books

Students also viewed these Accounting questions

Question

Confirm that the CEV model formulas satisfy put-call parity.

Answered: 1 week ago

Question

2. Find five metaphors for communication.

Answered: 1 week ago