Cost Accounting Final Stay at Home The Excel worksheet must be submitted through the D2L Dropbox by Thursday, May 21 at midnight The work must be your own and professionally prepared with clear identification of the budget you are preparing Dont forget the headings You have just been promoted to the position of controller at the Stanley Corporation The company is based in Moosic, PA The company manufactures unfinished wooden book shelves Projected sales in units for the first six months January 20,000 February 22,000 March 26,000 April 31,000 May 37,000 June 22,000 The unit selling price is $240 The following data relates to production policies and manufacturing specifications Finished goods inventory on January 1 is 2,200 units The desired ending inventory for each month is 20 of the next months sales There is only one direct material used wood Eight units are used for each bookcase The unit cost is $ 7 25 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 25 of the next months production needs This is exactly the amount of material on hand on January 1 The direct labor used per unit of output is two hours The average direct labor cost per hour is $32 Overhead each month is estimated using a flexible budget formula with activity measured in direct labor hours Fixed Cost Component Variable Cost Component Supplies $1 00 Power 45 Maintenance $22,000 $1 00 Supervision $31,000 Depreciation $85,000 Other $90,000 $ 1 10 Monthly selling and administrative expenses are estimated using a flexible budget formula with activity measured in units sold Fixed Cost Component Variable Cost Component Salaries $187,000 Commissions $ 2 00 Depreciation $40,000 Shipping $18 00 Other $125,000 $ 1 00 All sales and purchases are for cash The cash balance on January 1 equals $ 85,000 The company wants to have an ending cash balance of at least $ 40,000 If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance Cash is borrowed in $1,000 increments and repaid the following month, as is the interest due The interest rate is 8 per year REQUIRED Prepare a monthly operating budget, in good form, for each month in the first quarter of 2020 and provide a quarterly total (the company operates on a calendar year) with the following schedules 5 Overhead budget 6 Selling and administrative expense budget 7 Ending finished goods inventory budget 8 Cost of goods sold budget 9 Budgeted income statement (ignore income taxes) 10 Cash budget

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Cost Accounting Final- Stay at Home The Excel worksheet must be submitted through the D2L Dropbox by Thursday, May 21 at midnight. The work must

Cost Accounting Final- Stay at Home

The Excel worksheet must be submitted through the D2L Dropbox by Thursday, May 21 at midnight.

The work must be your own and professionally prepared with clear identification of the budget you are preparing. Dont forget the headings!

You have just been promoted to the position of controller at the Stanley Corporation. The company is based in Moosic, PA. The company manufactures unfinished wooden book shelves.

Projected sales in units for the first six months:

January 20,000

February 22,000

March 26,000

April 31,000

May 37,000

June 22,000

The unit selling price is $240.

The following data relates to production policies and manufacturing specifications:

Finished goods inventory on January 1 is 2,200 units. The desired ending inventory for each month is 20% of the next months sales.

There is only one direct material used wood. Eight units are used for each bookcase. The unit cost is $ 7.25. Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 25% of the next months production needs. This is exactly the amount of material on hand on January 1.

The direct labor used per unit of output is two hours. The average direct labor cost per hour is $32.

Overhead each month is estimated using a flexible budget formula with activity measured in direct labor hours.

Fixed Cost Component Variable Cost Component

Supplies $1.00

Power .45

Maintenance $22,000 $1.00

Supervision $31,000

Depreciation $85,000

Other $90,000 $ 1.10

Monthly selling and administrative expenses are estimated using a flexible budget formula with activity measured in units sold.

Fixed Cost Component Variable Cost Component

Salaries $187,000

Commissions $ 2.00

Depreciation $40,000

Shipping $18.00

Other $125,000 $ 1.00

All sales and purchases are for cash. The cash balance on January 1 equals $ 85,000. The company wants to have an ending cash balance of at least $ 40,000. If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance. Cash is borrowed in $1,000 increments and repaid the following month, as is the interest due. The interest rate is 8% per year.

REQUIRED:

Prepare a monthly operating budget, in good form, for each month in the first quarter of 2020 and provide a quarterly total (the company operates on a calendar year) with the following schedules:

5. Overhead budget

6. Selling and administrative expense budget

7. Ending finished goods inventory budget

8. Cost of goods sold budget

9. Budgeted income statement (ignore income taxes)

10. Cash budget