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does anyone think they could help me with this last part? greatly appreciate the help per unit per unit 121 D E 111 Ending Finished
does anyone think they could help me with this last part? greatly appreciate the help
per unit per unit 121 D E 111 Ending Finished Goods Inventory (at Cost) Hint: Use the information / previously calculated above (I.e. your PDOH) to determine the product cost of one unit. Once completed, 112 multiple the unit cost by the number of units in ending inventory. 113 Ending Finished Goods Inventory Budget Quantity Cost (rate) Total Cost 114 Production per Box Car per boxcar 115 Drect materials $ 116 Drect labor X $ 117 Manufacturng overhead X $ 118 Production Cost per Box Car 119 Ending finished goods inventory: Box Cars 120 Ending finished goods inventory in dollars 122 123 124 Tommy's Box Cars Large 125 Pro Forma Income Statement 126 For the Fiscal Year Ended June 30, 2022 127 Item Amount 128 Sales 129 Cost of goods sold 130 Gross margin 131 Seling & administrative expenses 132 Net operating come 133 Interest expense 134 Net income 135 136 Tommy's Box Cars Large 137 Pro Forma Balance Sheet 138 As of June 30, 2022 AND June 30, 2021 139 Assets June 30, 2022 June 30, 2021 140 Cash $ 1,850,000 141 Accounts receivable 2,900,000 142 Drect materials inventory $ 150,000 14Trished Goods nventory (box cars) $ 144 Plant and equipment 9,600,000 145 Total assets $14,500,000 146 Liabilities and Stockholders' Equity June 30, 2022 June 30, 2021 147 Accounts payable $ 800,000 148 Notes payable equpment $ 149 Letter of Crede outstanding $ 150 Captal stock $ 3,500,000 151 Retained Earnings $10,200,000 152 Total liabilities and stockholders equity 153 $14,500,000 154 ACCOUNTING EQUATION OUT OF BALANCE $ $ 25% Tommy's Box Cars During 2021 2022 fiscal year, the average selling price for targe box cars is expected to be (1) 5115 per car The Large Box Car Division forecasts the following units of sales Quarter First Second Third Fourth Box Car UNIT Sales (25) 65,000 60,000 57,000 60,000 The collection pattern for Accounts Receivable is as follows: (6) 40 percent of all sales are collected within the quarter in which they are sold ) 60 percent of all sales are collected in the following quarter. There are no bad debts/uncollectible accounts. Due to high demand last year, the Large Box Car Division expects to have (8) zero finished box cars in inventory on (35) July 1, 2021, the beginning of the first quarter of the new fiscal year (ie Beginning Finished Goods Inventory is (8) Zero). To avoid having that problem in the coming fiscal year, the large Box Car Division would like to have the ending inventory of Box Car at the end of each of the first three quarters equal to (9) 25% of the budgeted sales for the next quarter. They would like to have (10) 15,000 finished Box Cars on hand on (36) June 30, 2022. Quarter First Second Third Fourth Ending FG inventory of Box Cars as a % of the next quarter's budgeted 25% 25% sales (9) Ending FG inventory of Box Cars (10) 15,000 Each large box car requires an average of (11) 6.0 feet of wood. The Large Box Car Division buys wood for (13) $3.00 per foot and they expect the price to remain constant throughout the year. They expect to have (12) 50,000 feet of wood (RAW MATERIALS) on hand as of (35) July 1, 2021 ((12) 50,000 * ((13) $3.00 - (14) $150,000 - This is beginning Direct Material Inventory), the beginning of the first quarter of the fiscal year. At the end of each of the first three quarters, the Large Box Car Division would like to have their direct materials inventory quantity to equal (15) 25 percent of the amount required for the following quarter's planned production. On (33) June 30, 2022, the end of the fiscal year, Large Box Car Division would like to have (16) 60,000 feet of wood on hand (This is ending Direct Material Inventory). Quarter First Second Third Fourth Ending DM inventory as a % of the next quarter's production 25% 25% requirement (15) Ending DM inventory in feet (16) ? ? 60,000 The Large Box Car Division buys its wood on account. It pays for (17) 25% of its purchases of direct materials in the quarter in which they were purchased and (18) 75% in the quarter after they were purchased Each large box car requires (19) 4.5 hours of direct labor. Employees engaged in direct labor will be paid an estimated (20) $11.00 per labor hour. Wages and salaries are paid on the 15 and 30 of each month. Variable manufacturing overhead is estimated to be (21) 54.25 per direct labor hour for the coming fiscal year. All variable manufacturing overhead expenses are paid for in the quarter incurred. ? ? ? 239 ? ? Tommy's Box Cars Fixed manufacturing overhead is estimated to total (22) $110,000 each quarter, with (23) $10,000 out of the total amount of (22) $110,000 representing depreciation on machinery, equipment and the factory. All other fixed manufacturing overhead expenses are paid in cash in the quarter they occur. The forced manufacturing overhead rate will be computed by dividing the year's total foed manufacturing overhead by the year's budgeted direct labor hours. Round the fired overhead rate to the nearest penny, Variable selling and administrative expenses are estimated to be (24) $15.00 per box car sold. Fixed selling and administrative expenses are expected to total (25) $90,000 each quarter, with (76) $10,000 out of the total amount of (2) $90,000 representing depreciation on the office space, furniture and equipment. Other than depreciation, all selling and administrative expenses are paid for in the quarter they ocour On (36) June 30, 2022, the last day of the 4th quarter, the Large Box Car Division plans to buy new machinery and equipment for (7) $500,000. The new machinery and equipment will be acquired at the very end of the fiscal year, so it will not be used in production and sales during the coming year and it will not be depreciated until the following year. The Large Box Car Division aspects to pay (28) 30% down in cash and finance the remaining (29) 70% of the equipment cost with a note payable from a local bank with whom they do business with. No interest payable will accrue on the equipment note payable until after (36) June 30, 2022 The Division must maintain a minimum cash balance of (30) $100,000. If after accounting for cash receipts and disbursements (including dividends) in the cash budget, the budgeted cash available cash falls below (30) $100,000 in any quarter, the Division will need to borrow cash. They have arranged a line of credit allowing it to borrow in $10,000 increments (le, they can borrow $10,000 or $20,000 etc. but not an odd amount). Assume borrowing will take place at the beginning of any quarter in which the available cash would otherwise be below (30) $100,000 so that at no time during the quarter will the cash balance fall below (30) $100,000 (after payment of interest). If there is extra cash at the end of the quarter and there is borrowing outstanding, the division should pay down principal (also in increments of $10,000). The bank charges the Division interest at the rate of (31) 4% per quarter. Interest accrued in the quarter will be paid the first day of the next quarter (ca. Qi's interest is not paid in cash until Q2 and Q2's Interest will be paid in 03) As a fully owned subsidiary, the Large Box Car Division does not pay income taxes. All income taxes are charged to Tommy's Box Car's, the parent company. Large Box Car Division will pay dividends of (32) $70,000 each quarter to its corporate parent, Tommy's Box Car's. The dividends must be paid, even if the Large Box Car Division has to borrow on its line of credit to make the payment The budgeted balance sheet for the Large Box Car Division on (34) June 30, 2021 (which is the same as the budgeted balance sheet at the beginning of business (35) July 1, 2021) is presented below. Tommy's Box Cars owns 100% of the Capital Stook of the Large Box Car Division LARGE BOX CAR DIVISION - TOMMY'S BOX CARS BUDGETED BALANCE SHEET (34) JUNE 30, 2021 ASSETS Cash Accounts Receivable Raw Material Inventory (14) Plant and Equipment $1,850,000 2,900,000 150,000 9.600.000 LIABILITIES & EQUITY Accounts Payable $800,000 Notes Payable 0 Capital Stock 3,500,000 Retained Earnings 10.200.000 TOTAL ASSETS $11,500,000 TOTAL LIAIS. & SE $14,500,000 Step by Step Solution
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