Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $160,000 $197,500

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $160,000 $197,500 $219,800 Insurance expense** 1,180 1,180 1,180 Depreciation expense 1,840 1,840 1,840 Property tax expense*** 470 470 470 * of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,180 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is pald once a year in November The cash payments expected for Finch Company in the month of April are Oa. $141,770 Ob. $120,000 Oc. $123,540 Od. $160,000 Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $38,000, $35,000, and $28,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $46,000, $37,000, and $21,000, respectively. Direct materials purchases were $575,000, direct labor was $235,000 for the year, and factory overhead was $147,000. Prepare a cost of goods sold budget for Sleep Tight, Inc. Sleep Tight, Inc. Cost of Goods Sold Budget For the Year Ending December 31 Finished goods Inventory, January 1 38,000 Work in process inventory, January 1 35,000 Direct materials: Direct materials, January 1 28,000 Direct materials purchases 575,000 Cost of direct materials available for sale 603,000 Direct materials inventory, December 31 21,000 Cost of direct materials placed in production 582,000 Direct labor 235,000 Factory overhead 147,000 Total manufacturing costs 964,000 Total work in process during the period Work in process inventory, December 31 38,000 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31 Cost of goods sold no Good Eats Inc. manufactures flatware sets. The budgeted production is for 80,000 sets this year. Each set requires 2.5 hours to polish the material If polishing labor costs $15 per hour, determine the direct labor cost budget for polishing for the year. The cash budget summarizes future plans for the acquisition of fixed assets. True O False Principal components of a master budget include Oa. a. production budget Ob. sales budget c. capital expenditures budget d. all of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping And Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1654626090, 978-1654626099

More Books

Students also viewed these Accounting questions

Question

Find the zero(s) of the function f(x) = 3x + 9.

Answered: 1 week ago

Question

What do you like to do in your spare time?

Answered: 1 week ago