Additional information: 1 2 3. 4. Sales and variable costs of sales are expected to increase by 12 percent in the next quarter. All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter. Variable cost of sales consists of 40 percent materials, 40 percent direct labor, and 20 percent variable overhead. Materials are purchased on credit. Fifty percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. The inventory balance is not expected to change. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred. Fixed production costs (other than $10,000 of depreciation expense) are expected to increase by three percent. Fixed production costs requiring payment are paid in the quarter they are incurred. Fixed selling and administrative costs (other than $8,000 of depreciation expense) are expected to increase by two percent Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred. The tax rate is expected to be 20 percent. All taxes are paid in the quarter they are incurred. No purchases of property, plant, or equipment are expected in the first quarter of 2021. 5. 6. 7. Question 5 of 6 0.29/1 Prepare a cash budget for the first quarter of 2021. Marx Manufacturing Company Cash Budget For the Quarter Ended March 31, 2021 OBI co search Question 5 of 6 0.2971 e Textbook and Media Question 5 of 6 0.29/1 The results of operations for the Marx Manufacturing Company for the fourth quarter of 2020 were as follows: $ 605,000 369.000 236,000 Sales Less variable cost of sales Contribution margin Less fixed production costs Less fixed selling and administrative expenses Income before taxes Less taxes on income Net income $ 126,000 59.000 185,000 51.000 20,400 $ 30,600 Note: Marx Manufacturing uses the variable costing method. Thus, only variable production costs are included in inventory and cost of goods sold. Fixed production costs are charged to expense in the period incurred. The company's balance sheet as of the end of the fourth quarter of 2020 was as follows: COM Question 5 of 6 0.29/1 Note: Marx Manufacturing uses the variable costing method. Thus, only variable production costs are included in inventory and cost of goods sold. Fixed production costs are charged to expense in the period incurred. The company's balance sbeet as of the end of the fourth quarter of 2020 was as follows: Assets: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and owners' equity Accounts payable Common stock Retained earnings Total liabilities and owners' equity 173,000 236,000 428,000 837,000 487.000 118,000 $ 1.206,000 $ 67.800 597.000 541.200 $ 1.206,000 omework Question 3 of 6 -/1 View Policies Current Attempt in Progress Expected manufacturing costs for Accustart Data Devices are as follows: Variable Costs Fixed Costs per Month Direct material $8.00/unit Supervisory salaries $16,660 Direct labor 3.50/unit Factory depreciation 10,290 Variable overhead 1.80/unit Other factory costs 3,020 During the period. Accustart produced 12,740 units and incurred the following costs: Variable Costs Direct material $100,450 Direct labor 49.000 Variable overhead 22.540 Fixed Costs per Month Supervisory salaries $17.350 Factory depreciation 9,310 Other factory costs 3.350 warinresising either -/1 Prepare a performance report for Accustart Data Devices. (List variable costs before fixed costs. Enter unfavorable variances using either a negative sign preceding the number eg. -45 or parentheses eg. (451) Actual Difference Flexible Budget 101920 V $ 44590 $ 22932 16660 10290 Question 3 of 6 -/1 22932 16660 10290 e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Late Last saved 1 hour ago
