AutoSave OFF Ch 7 Homework Insert Draw Page Layout Data View Developer Home Formulas Review ag Calibri 14 A A General Paste B I UV Ev $ ~ % " A1 4 X V fx | Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement A B C D E F 1 Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement RD Company prepares monthly operating and financial budgets. Estimates of sales (in units) are made for each month of the second uarter, as follows: N April units 77,000 May units 87,000 June units 92,000 July units 102,000 roduction is scheduled at a level high enough to take care of current sales needs and to carry into each month 21% of next month's ales units. The finished goods inventory at the beginning of the quarter consists of 21,000 units. 8 irect materials are estimated at $2 per unit, direct labor at $9 per unit, and variable manufacturing overhead is estimated at $5 per 9 nit. Total fixed manufacturing overhead is budgeted at $580,000 per month. ales price per unit is budgeted at $74 per unit. Variable selling and administrative expenses are $20 per unit and fixed selling and 10 dministration expenses are $900,000 per month 11 12 equired: 13 ) Prepare a sales budget for the second quarter by month. 14 ) Prepare a Production Budget for each month with 2nd Quarter totals in the last line. 15 ) Prepare a Cost of Goods Sold Budget for the second quarter by month. 16 ) Prepare a Budgeted Income Statement for the quarter by month using the multi-step income statement format. 17 18 19 CRD Company 20 Sales Budget 21 For Second Quarter 22 April May June 2nd Quarter 23 24 25 26 27 28 CRD Company 29 Production Budget 30 For Second Quarter 31 OUND to nearest unit (no decimals) April May June 2nd Quarter 32 ales Homework Settings + Select destination and press ENTER or choose Paste 12,471 NOV 33 29 R MacBocel File Edit View Insert Dar Ch 7 + AutoSave OFF View Developer Draw Page Layout Formulas Data Review me Insert General Calibri 14 A $ ~ % " 00 aste B X V fx Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income S C E A B D CRD Company Production Budget For Second Quarter ROUND to nearest unit (no decimals) April May June 2nd Quarter Sales in units Add: Desired Ending Finished Goods Inv. Need a hint? (Check in box) Total Finished goods inv. Needed 6 Deduct: Beg. Finished Goods Inventory Need a hint? (Check in box) 38 Units to be produced 39 Self Check (April and June only): 40 41 CRD Company 42 Cost of Goods Sold Budget (show each item individually) 43 For Second Quarter 44 April May June 2nd Quarter 45 46 + 52 53 54 CRD Company Fr Budgeted Income Statement 56 For Second Quarter 57 April May June 2nd Quarter 58 Sales Revenue 59 60 61 62 63 64 . May and 2nd Qtr Self Check 65 66 Problem 2: Sales Budget, Schedules of Cash Receipts, Purchases Budget, and Cash Payments Homework Settings + Select destination and press ENTER or choose Paste 12,471 NOV 33 29 344 RFile Edit View Insert Format Tools Data Window Help AutoSave OFF Ch 7 Homework Insert Draw Page Layout Formulas Data Review View Developer ab Conditi Calibri 14 General LA Format B I UV $ ~ % " Cell St X V fx Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement B C D E F G blem 2: Sales Budget, Schedules of Cash Receipts, Purchases Budget, and Cash Payments xy Lighting Company manufactures and sells lighting fixtures. Units are sold for $50 each and all sales are on account or credit s. The estimated sales units are given below. August sales units 6,231 September sales units 9,371 October sales units 12,119 November sales units 15,633 December sales units 15,949 laxy Lighting Company estimates that 63% of sales are collected in the same month as the sale and 37% collected the month after e sale. August 31's ending accounts receivable is expected to be $115274 and should be collected in September. enerally, 84% of purchases are due and payable in the month of purchase with the remainder due the following month. The material urchase cost per unit is $23. The company maintains an ending raw materials inventory of 25% of next month's UNIT sales. August's ding inventory is estimated at 1558 units and November's ending raw materials inventory is estimated at 3987 units. The accounts ayable balance on August 31 is expected to be $14,000 and should be paid in September. Required: . Prepare a Sales Budget in dollars and units for September, October, and November 2. Prepare a Schedule of Cash Receipts (or Collections) from customers for September, October, and November. 3. Prepare a Purchases Budget for Aptember, October, and November. 4. Prepare a Schedule of Cash Payments for Material Purchases for September, October, and November. Galaxy Lighting Company Sales Budget Sept Oct Nov Sales in Units Sept Self Check: Galaxy Lighting Company Schedule of Cash Receipts Sept Oct Nov Sales revenue (from sales budget) Hint ? Cash Collect Homework Settings + Select destination and press ENTER or choose Paste 12,471 NOV 33 344 29 ... R 4Excel File Edit View Insert Format Tools Data Window Help Dir Ch 7 Homework AutoSave OFF Data Review View Developer Home Insert Draw Page Layout Formulas E ab Conditional Fo Calibri 14 A General Format as Tab % 9 00 -00 Paste B U V Cell Styles v A1 X V fx Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement A B D E G 90 Galaxy Lighting Company 91 Schedule of Cash Receipts 92 Sept Oct Nov 93 Sales revenue (from sales budget) Hint? 94 Cash Collections from sales: ROUND to nearest dollar (no decimals) 95 Aug 31 Accounts Receivable 96 September Sales Hint? 97 October Sales Hint? 98 November Sales 99 Total Cash collections from sales 100 Oct Self Check: 101 102 Galaxy Lighting Company 103 Raw Materials Purchases Budget 104 Sept Oct Nov 105 Sales in Units (from sales budget) ROUND to nearest unit (no decimals) 106 Hint? 107 108 109 Purchases required in units 110 x Purchase cost per unit + 111 Purchases Required (in dollars) 112 Nov Self Check: 113 114 Galaxy Lighting Company 115 Schedule of Cash Payments for Purchases 116 Sept Oct Nov 117 Purchases (in dollars) Hint? 118 Cash payments for purchases: ROUND to nearest dollar (no decimals) 119 120 121 Hint ? 122 Hint? 123 Total cash payments for purchases 124 Sept Self Check: 125 A Homework Settings + Select destination and press ENTER or choose Paste 12,471 NOV 33 344 29 ... R 4Excel File Edit View Insert Format Tools Data Window Help DaCh 7 Homework AutoSave OFF Review View Developer No Formulas Data Home Insert Draw Page Layout ab v Condit - A 14 AT General - L Calibri Forma B IUV A $ ~ % 9 Paste Cell S A1 4 X V fx Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement C D G Th 125 126 Problem 3: Budgeted Income Statement and Cash Budget - P Th Refer to the previous problem 2 for Galaxy Lighting. In addition to the information given in Problem 2, selling and administrative expenses paid in cash are $130,000 per month. Depreciation on the office building is $7700 per month and the September 1 cash - P 127 balance is expected to be $81,000. Su 128 129 Required: 1. Prepare a Budgeted Income Statement for September, October, and November (Hint: Calculate cost of goods sold using sales in 130 units from sales budget x purchase cost per unit from Purchases Budget in Problem 2). 131 2. Prepare a monthly Cash Budget for September, October, and November. 132 3. What is a non-cash expense and how is it used in budgeting? 133 134 EX 135 Galaxy Lighting Company M. 136 Budgeted Income Statement 137 Sept Oct Nov Quarter Total 138 Tu 139 140 141 142 W 143 - F 144 145 Galaxy Lighting Company Th 146 Cash Budget 147 Sept Oct Nov F Hint? 148 Beginning Cash Balance 149 150 Hint? 151 152 153 Hint ? 154 Hint? 155 156 Ending Cash Balance Hint ? D Homework Settings + Select destination and press ENTER or choose Paste 12,471 NOV 33 29 344 ... A R I 4Excel File Edit View Insert Format Tools Data Window Help AutoSave OFF air Ch 7 Homework No Home Insert Draw Page Layout Formulas Data Review View Developer - L Calibri V 14 V AA = ab v General Conditional Formatting -E Format as Table v 131 1141 Paste B I UV DVAv FE $ ~ % 00 Cell Styles v A1 4 X V fx Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement D G H Thi 144 - P 145 Galaxy Lighting Company Th 146 Cash Budget 147 Sept Oct Nov - P Hint? Su 148 Beginning Cash Balance 149 Hint? 150 151 152 Hint? 153 Hint? Ex 154 155 Mc 156 Ending Cash Balance Hint? 157 Oct Self Check: 158 Tu 159 Analysis: What is a non-cash expense and how is it used in budgeting? 160 W - F 161 + 162 Th 163 - 164 165 Fr * Questions adapted from "Accounting Principles: A Business Perspective, Financial Accounting" A Textbook Equity Open College Textbook originally by Hermanson, 166 Edwards, and Maher 167 168 169 170 171 172 173 174 175 Homework Settings + Select destination and press ENTER or choose Paste 12,471 29 4 P MacBook Air