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help me pls, thank you Exercise 1: Deleon Inc. is preparing its annual budgets for the year ending December 31, 202. Accounting assistants furnish the
help me pls, thank you
Exercise 1: Deleon Inc. is preparing its annual budgets for the year ending December 31, 202. Accounting assistants furnish the data shown below for the first quarter of the year 202 as follow: \begin{tabular}{|l|l|l|} \hline & & Product JB 50 \\ \hline \multicolumn{2}{|l|}{ Sales budget: } & \\ \hline \multicolumn{2}{|l|}{ Anticipated volume in units } & 400,000 \\ \hline \multicolumn{2}{|l|}{ Beging price } & $120 \\ \hline Production budget: & \\ \hline \multicolumn{2}{|l|}{ Direct materials budget: } & unknown \\ \hline Cost pect materials per unit (pounds) & 2 \\ \hline Direct labor budget: & $3 \\ \hline & Direct labor time per unit & \\ \hline & Direct labor rate per hour & 1.5 \\ \hline \end{tabular} Manufacturing overheads: except for fixed overhead, variable overheads are based on the following rates per direct labor hour: \begin{tabular}{|l|l|l|} \hline & Indirect materials & $5 \\ \hline & Indirect labor & $12 \\ \hline & Other variable overhead & $10 \\ \hline & Total fixed overhead per quarter & $200,000 \\ \hline \end{tabular} Selling and admin budget: \begin{tabular}{|l|l|l|} \hline & Variable selling expense per unit & $5.5 \\ \hline & Total fixed selling expense per quarter & $120,000 \\ \hline & Variable admin expense per unit & $10 \\ \hline & Total fixed admin expense per quarter & $150,000 \\ \hline \end{tabular} Instructions: Prepare the following budgets for each quarter in 202. 1. Sales 6. Selling and admin expenses 2. Production 7. Budgeted Income Statements 3. Direct materials 8. Cash budget 4. Direct labor 9. Budgeted Balance Sheet 5. Manufacturing overhead With the following information: (1) Sales quantity and unit price increase 5% and 10% respectively in each following quarter. (2) The required closing balance of finished goods is 25% of next quarter's expected sales. (3) The required closing balance of materials is 30% of the next quarter's expected usage. (4) Corporate income tax rate is 30%. (5) All sales are expected to be collected 60% in the quarter of sale, 40% in the following quarter following the sale. (6) 70% of direct materials purchases are paid in the quarter of purchase, and the rest in the quarter following the purchase. (7) All remaining expenses are paid in the quarter incurred, in which depreciation expense is $4,000,000 per quarter. (8) Company must maintain minimum cash balance of $100,000 at the end of each quarter. OB of Accounts Receivable and Accounts Payable, Cash are $10,000,$16,000 and $150,000 respectivelyStep by Step Solution
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