Case 5-3 - Comprehensive master budpet in a manufacturing setting Name: Course Date: Kendon Compare nelure de rack for Kim Kanchan is preparing the budget for hende. Stu tox gured the following informace Klonger reporin Italia company od 15.000 tage of our nach Heftes weloped boliger. The kepucida asporto April 18.000 bage Mwy 22.000 g Jung 20,000 bags July 24,000 bags A 100 g 2. Salis personnel received% cesion on every bag of rocks od The following menthly feeding and administrate per le for a curt Howwe, amounts de not be the departing from it bara que purustert? Mority and Sling and Administrative Costs Variati Cosun Depreciation $10.0CO Salaries of personnel 25,000 $1.00 Advertising 1.000 Management 10,000 Misoolaneous 500 Badebis TCM $46,500 $1.00 3. Alexprenghly supplying and may on the lower lory holi, tomorry dhe pergh congreshed gerary low.2% The following months bulld, in uns. On March 31, 4.000 bags and 4. Eight pourds of direct materials are required to fill cach bag of finished oks. The company wants to have raw materiala on hard at the end of each month equal to 10% of the filow ng mone's production needs. On March 31, 13,000 pounds of materials were on hand. 5. The drech materials used in production cost $1.25 per pound Saty percent of the month's purchases is said for in the month of purchase the remaining 40%, in the following month No discount is avalable G. The standard laboralowed for one bag of rock i 30 minutes. The current direct labore 512 per hour 7. On June the company plans spend $80.000 to upgrade tsolice equipment that is fully capredsted The new equipment is expected to have a ve-year lite with no ridal value White deprecated, the old equipment wilboretained in service 3. The budgeted monthly variable and toral fold owerhead are as follows. We even la based on the number of units produced. The fixed overhead budget la based on an annual production of 420,000 Vrati Count Depreciation Indie Indirect labor UN Property Maintenance Test Fie! Marthy Overeed $8,000 2,500 13.co 18,000 4,00 7.000 $52,50 $0.08 022 0.15 0.25 . All sales are made on account. Historically, the company has colected 70% of its salos n the month of sale and 20% in the month following the sale. The remaining 5% of sales suncoloctble land is included in the previous seling and administrative bad debt expense information 10 Kardon must maintain a minimum cash balance of $40,000. An open vre of credit at a local bank allows the company to borrow up to $175.000 per garter in $1,000 increments. All borrowing is done at the beginning of the month and all repayments are made at the end of a month in $1.000 ncrements Accrued interest is paid only when principal is repard. The interes rate is 12% per year 12. A quartery dividend of 563.000 de declared and paid in April 13. Income capable for the first quarter wil be paid an April 15. Kandon's 30% 14. The March 31 balance sheet is as follows: March 31 Carte SANTORO Accounts rogivable 93.750 Finished goods or 21 800 Raw materials inventory 73000 Panturen 200.000 Accumu sied Depreciation 159) Tell as $9782 Accounts payable $12.000 Income Day 24 000 Common stock 32000 Recained Gaming 290 350 Tols liables degunes $75 Required a Prepare i components of don't for the second quare Here's one way you could solve part of this problem Sales Badet And Budgeted units sold Figure Figure Figure [Formula Budowle price Figure Fi Flyre (Figure Budgeted revenue Formu Formal Femal Form Oracle in way and solve the cost of the groblem Prepare a proforma income statement for the second cuarter. Serve: Prepare a pro-loma dance of June 30 Solve Course: Date Kandon Company unufactures decorative rocks for women Kim Kardon la preparing the budget for the quarter andet June 30the has gred the information Kardon's sales manager reported that the company od 15,000 bags of moes in March. He has developed the following sales forecast The spected serca per has Art 18,000 May 22.000 bags June 20,000 bage July 24.000 bage Augual) 18,000 bags + 2. Sales personal receive a 4 commission on every bag of rocks sold. The following med selling and administrative expenses planned for the quarter How these amounts do not include the decisionnementing from the budgeted moment Durchase in Juretser Monthly Fed Seling and Administrativa Costs Varios Depreciation $10,000 Salaries of personne 25,000 31.00 Advertising 9,000 Management 10,000 Miscellaneous 500 Bad debts Total coste 446,500 $1.00 3. Aner experiencing dificulty in supplying customers in a timely fashion we to inventory shortages, the company established a policy requiring the ending finished goods inventory to 20% of the following month's budgeted sale in units. On March 31, 4.000 bags were on hand Eight pounds of direct materials are required to teach bag of finished rocks. The company wants to have raw materials on hand at the end of each month equal to 10% of the following month's production need on March 31, 13.000 pounds of materials were on hand. 5. The direct materials used in production cost $125 per pound. Saty percent of the month's purchases is paid for the month of purchase the remaining 40%, in the following month N discount is available 6. The standard laboratowed for one bag al rocks is 30 minutes. The current direct labor rate is $12 per hour 7. On June 1, the company plans to spend 500,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year, we no residuale While ful-depreciated, the old agent will be retained in service 8. The budgeted monthly variable and foed Overhead are as foliowe Variable overhead based on the name of its produced. The fixed overhead budget is based on an annual production of 420.000 bags Fed Monthly Dead Variable Dealth Depreciation Indirect material 2.500 50.08 Indirect labor 13.000 027 ties 18.000 0.15 Property taxes Maintenance 7,000 Tot conte 352500 50.75 9. Alles are made on account stocally, the company has collected 70% of Rs sales in the month of de and 25% in the month following the same the remaining of uncollectible and included in the previous sing and administrative bed debt expense Wormation) 10 Klandon must run a minimum cash balance of $40.000 An openine of credit focal bank slows the company to borrow up to $175.000 per quanto increments Case 5-38 58.000 4.000 x Un June 1, the company plans to spend $60,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year fe, with ne DO 38.000 Deprecation Inc ht 02 0.1 Property Warance 11,000 000 4000 7.000 1 A are made on How the composed on the mood 25 wg the Terms collecties included in the prendre la person 10 Canton must be Anne of character to 11.000 1.000 tt. Alberg is one at the beginning of the of 1000 creme court pad only when the Herest rate is 1 12. Art. 58.000 econd in April 19. Increase pay for the first time 14 March 3 be she is March 31 00 ACO 750 Powertory 21 800 3000 Purent 200,000 Accu Deprecation Toll 112.000 3400 Acco Incore Corn athai Burlandam 2020 Prepare a components of the wonder Merethe way you were we Bass Buel 10 fr For Budstedt Beds Bugedes komu 22 O pour ve the Case 5-30 + b. Prepare a pro-forma Income statement for the second quarter Solve: Prepare a pro-forma balance sheet as of June 30, Solve: Case 5-38 + Case 5-3 - Comprehensive master budpet in a manufacturing setting Name: Course Date: Kendon Compare nelure de rack for Kim Kanchan is preparing the budget for hende. Stu tox gured the following informace Klonger reporin Italia company od 15.000 tage of our nach Heftes weloped boliger. The kepucida asporto April 18.000 bage Mwy 22.000 g Jung 20,000 bags July 24,000 bags A 100 g 2. Salis personnel received% cesion on every bag of rocks od The following menthly feeding and administrate per le for a curt Howwe, amounts de not be the departing from it bara que purustert? Mority and Sling and Administrative Costs Variati Cosun Depreciation $10.0CO Salaries of personnel 25,000 $1.00 Advertising 1.000 Management 10,000 Misoolaneous 500 Badebis TCM $46,500 $1.00 3. Alexprenghly supplying and may on the lower lory holi, tomorry dhe pergh congreshed gerary low.2% The following months bulld, in uns. On March 31, 4.000 bags and 4. Eight pourds of direct materials are required to fill cach bag of finished oks. The company wants to have raw materiala on hard at the end of each month equal to 10% of the filow ng mone's production needs. On March 31, 13,000 pounds of materials were on hand. 5. The drech materials used in production cost $1.25 per pound Saty percent of the month's purchases is said for in the month of purchase the remaining 40%, in the following month No discount is avalable G. The standard laboralowed for one bag of rock i 30 minutes. The current direct labore 512 per hour 7. On June the company plans spend $80.000 to upgrade tsolice equipment that is fully capredsted The new equipment is expected to have a ve-year lite with no ridal value White deprecated, the old equipment wilboretained in service 3. The budgeted monthly variable and toral fold owerhead are as follows. We even la based on the number of units produced. The fixed overhead budget la based on an annual production of 420,000 Vrati Count Depreciation Indie Indirect labor UN Property Maintenance Test Fie! Marthy Overeed $8,000 2,500 13.co 18,000 4,00 7.000 $52,50 $0.08 022 0.15 0.25 . All sales are made on account. Historically, the company has colected 70% of its salos n the month of sale and 20% in the month following the sale. The remaining 5% of sales suncoloctble land is included in the previous seling and administrative bad debt expense information 10 Kardon must maintain a minimum cash balance of $40,000. An open vre of credit at a local bank allows the company to borrow up to $175.000 per garter in $1,000 increments. All borrowing is done at the beginning of the month and all repayments are made at the end of a month in $1.000 ncrements Accrued interest is paid only when principal is repard. The interes rate is 12% per year 12. A quartery dividend of 563.000 de declared and paid in April 13. Income capable for the first quarter wil be paid an April 15. Kandon's 30% 14. The March 31 balance sheet is as follows: March 31 Carte SANTORO Accounts rogivable 93.750 Finished goods or 21 800 Raw materials inventory 73000 Panturen 200.000 Accumu sied Depreciation 159) Tell as $9782 Accounts payable $12.000 Income Day 24 000 Common stock 32000 Recained Gaming 290 350 Tols liables degunes $75 Required a Prepare i components of don't for the second quare Here's one way you could solve part of this problem Sales Badet And Budgeted units sold Figure Figure Figure [Formula Budowle price Figure Fi Flyre (Figure Budgeted revenue Formu Formal Femal Form Oracle in way and solve the cost of the groblem Prepare a proforma income statement for the second cuarter. Serve: Prepare a pro-loma dance of June 30 Solve Course: Date Kandon Company unufactures decorative rocks for women Kim Kardon la preparing the budget for the quarter andet June 30the has gred the information Kardon's sales manager reported that the company od 15,000 bags of moes in March. He has developed the following sales forecast The spected serca per has Art 18,000 May 22.000 bags June 20,000 bage July 24.000 bage Augual) 18,000 bags + 2. Sales personal receive a 4 commission on every bag of rocks sold. The following med selling and administrative expenses planned for the quarter How these amounts do not include the decisionnementing from the budgeted moment Durchase in Juretser Monthly Fed Seling and Administrativa Costs Varios Depreciation $10,000 Salaries of personne 25,000 31.00 Advertising 9,000 Management 10,000 Miscellaneous 500 Bad debts Total coste 446,500 $1.00 3. Aner experiencing dificulty in supplying customers in a timely fashion we to inventory shortages, the company established a policy requiring the ending finished goods inventory to 20% of the following month's budgeted sale in units. On March 31, 4.000 bags were on hand Eight pounds of direct materials are required to teach bag of finished rocks. The company wants to have raw materials on hand at the end of each month equal to 10% of the following month's production need on March 31, 13.000 pounds of materials were on hand. 5. The direct materials used in production cost $125 per pound. Saty percent of the month's purchases is paid for the month of purchase the remaining 40%, in the following month N discount is available 6. The standard laboratowed for one bag al rocks is 30 minutes. The current direct labor rate is $12 per hour 7. On June 1, the company plans to spend 500,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year, we no residuale While ful-depreciated, the old agent will be retained in service 8. The budgeted monthly variable and foed Overhead are as foliowe Variable overhead based on the name of its produced. The fixed overhead budget is based on an annual production of 420.000 bags Fed Monthly Dead Variable Dealth Depreciation Indirect material 2.500 50.08 Indirect labor 13.000 027 ties 18.000 0.15 Property taxes Maintenance 7,000 Tot conte 352500 50.75 9. Alles are made on account stocally, the company has collected 70% of Rs sales in the month of de and 25% in the month following the same the remaining of uncollectible and included in the previous sing and administrative bed debt expense Wormation) 10 Klandon must run a minimum cash balance of $40.000 An openine of credit focal bank slows the company to borrow up to $175.000 per quanto increments Case 5-38 58.000 4.000 x Un June 1, the company plans to spend $60,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year fe, with ne DO 38.000 Deprecation Inc ht 02 0.1 Property Warance 11,000 000 4000 7.000 1 A are made on How the composed on the mood 25 wg the Terms collecties included in the prendre la person 10 Canton must be Anne of character to 11.000 1.000 tt. Alberg is one at the beginning of the of 1000 creme court pad only when the Herest rate is 1 12. Art. 58.000 econd in April 19. Increase pay for the first time 14 March 3 be she is March 31 00 ACO 750 Powertory 21 800 3000 Purent 200,000 Accu Deprecation Toll 112.000 3400 Acco Incore Corn athai Burlandam 2020 Prepare a components of the wonder Merethe way you were we Bass Buel 10 fr For Budstedt Beds Bugedes komu 22 O pour ve the Case 5-30 + b. Prepare a pro-forma Income statement for the second quarter Solve: Prepare a pro-forma balance sheet as of June 30, Solve: Case 5-38 +