i am very confused on how to complete this workshet. i am in need of some help on getinng the ball rolling. some answers would be useful to get that going
Determine the standard direct material cost per container Determine the standard direct labor cost per container using the following calculation template. (Direct Materials Requirement Worksheet, Table A3) Determine the standard factory overhead cost per container (Factory OH Rate Worksheet, Table A4) Complete the Job Cost Detail Report, Table A5, by inputting the standards determined in steps 1-3. Using the information provided in the narrative, complete the production budget (Table A6), Using the informationprovided in the narrative regarding materials purchasing policies and the shopping list, complete the direct materials budget (Table A7). Using the information from the Job Cost Detail and the Production Budget, complete the Direct labot budget (Table A8) Using the information provided in the narrative complete the Selling and administration budget (Table A9). Using the information provided in the narrative and the preceding schedules, complete the Cash Budget to determine your need to borrow from the line of credit offered by the bank (Table 10). Use the journal entry and T-account templates (Table A11 and 12 respectively), complete the information for July to project financial information for July. Reference your postings with the journal entry number. You will have to post all entries in order to complete the budgeted financinl statements (Table 113). Prepare the financial statement projections for July (Table A13). If your balance sheet balances, this is a good indication that things are going well. Do not continue the work unless it balances Repeat steps 10 and 11 for August - December, 2020 (Table A11, Table A12 and Table A13) Propure a Final Projected Income Stutenent (Tble A15), Balance Sheet (Table A14), and Statement of Cash Flows (Table 116). Ignore income taxes. Answer the following final questions in a Microsoft Word document for Part 1: 1. How much money do the three stockholders have to borrow from the bank before they start to pay it back? When is the loan first needed, and when will it be completely paid back? b. How do you feel about this plan? Is there anything not included in the projections besides payroll taxes, interest and taxes, which we purposely excluded? What would interest expense be in 2021, assuming a 6% rate, with borrowings or payments at the end of each month? Show your calculation. What would income tax expense be, assuming a tux tute of 30%? Would you be comfortable in starting the business? CSABCO, Inc. chose to use a job order cost syster due to smaller production runs and potential shared machinery and equipment with other potential products in the future. Explain why different cost system might be more appropriate if SABCO decided to customize the brownies by the optional additions of cither candy-coated chocolates and/or nats? How would its production data huve looked different using an alternative cost system? Item Actual Cost Containers 10.78 Salt Cocon Chocolate Chips Vanilla Chips Hrown sugar All-Purpose Flour Ganelated Sugar Purchase Quantity 10 clear 32 ox del container 26 or container of Morton Salt 8 oz Store Brand Baking Cocos 24 oz bags Store brand chocolate chips 2-12 oxas Store brand White vanilla baking chips 1-32 oz. packages store brand 1-5 b bags 1-4 lb has Total Cost per Batch of 4 with extra ingredients Estimated Total Cost Details Sold in set of 10 on Amazon. May substitute any clow 32 ounce $ 9.58 container such as a quarter 0.90 2.79 4.48 4.78 2.18 0.99 2.59 418 419 2.27 189 3.07 30.16 1.69 2.39 2888 S Materials Requirements Worksheet Unit of Measure of 4 tar O. Amount Required in Batch of 12 (from your sister's recipe) 12 Quiz delicate with lid 9 9 top. salt 12 or. Cocos 42 oz. Chocolate Chips 42 op. Vanilla white chocolate Chips SO L. Brown Sug S lb. All purpose Flour (0) Sib. Granulated Supe) Materials Qty Required per Container 1 0.75 1.00 3.5 3.5 4.17 6.67 6.67 Materials Qty Required in Batch Materials Cost per Materials Cost Per Materials Cost Per unit Batch of 4 Container 4.00 $ 0.96 3.00 $ 0.008 4.00 $ 0.35 14.00 $ 0.19 14.00 $ 0.20 16.685 0.07 26.685 0.02 26.685 0.04 . OU OZ Totals $ 100,000 Units to be produced 2020 Total Cost of Materials Projected in 2020 S Note the tog has been deated by a native that was a office supply store and you need a ladude these items in the materials cost. Direct Labor Requirements Worksheet Fraction of Hour for each Batch # of Direct Labor Workers # of Man Hours 0.75 Direct Labor Per #of Batches Direct Labor Rate Per Hour Batch Needed in 2020 Dollars in 2020 15.00 S 11.25 25.000 281.250 Containers to be produced 100,000 Direct Labor Cost Per Containers Factory Overhead Rate Worksheet Total Costs Total Projected Factory Overhead Costs Per Month Months of Production Indirect Labor Factory Space Rent Utilities Depreciation Total cost for 2021 holiday seasons Divide by total number of containers produced Overhead applied per container (round to 4 decimals) S 100,000 1 Job Cost Detail Sheet Job Number: 1 4 Containers Product: Sand Art Brownies Estimate Actual Direct Materials Direct Labor Factor Overhead Total Cost Cost Per Container round to 4 decimals * Actual column should not be filled in until after production in part III Production Budget July August September October November Budgeted sales in units Add desired ending inventory Total needs Less beginning inventory Required production Direct Materials Budget July August September October November Required production from production budget Number of containers per batch Number of batches of material needed (production needs) Add desired batches of materials in ending inventory Total Needs Less beginning inventory Required butches Cost per batch (sce shopping list. Includes waste) Cost of purchmes Table AS July August September October November Required production from production budget Number of containers per batch Number of batches of produced Direct Libor cost per batch (nee Job cost detail) Cost of Direct labor October November December Selling and Administrative Expense Budget July August September Administrative Salaries Fulfillment House Expense Credit Card Expense Internet Expense Office Rent Total cash disbursements for Selling and administration expenses July Cash Budget August September October November December Year Beginning cash balance Add cash recipes Collections from customers Toul cash available Less cash disbursement Direct materials Direct Labor Manufacturing everal selling and administrative expenses Equipment purchase Total cash disbursements Preces (deficimcy) of cul available over disbursements Financing Horrowings (at the beginning of the month) Repayments at the end of the year) Interest Tocal financing Ending cash balance JOURNAL ENTRIES July Date Description Debit Credit Rete 7/1/21 CHECKING COMMON STOCK ADOITIONAL PAID-IN CAPITAL To record partner capta 7/1/21 CASH LINE OF CREDIT PAYABLE To record draw on line of cred 7/31/21 ADMINISTRATIVE SALARIES FULLFILLMENT HOUSE EXPENSE INTERNET EXPENSE OFFICE RENT CASH To recorded and administrative experien 7/31/21 EQUIPMENT CASH To record purchase of me 7/31/21 MANUFACTURING OVERHEAD ACCUMULATED DEPRECIATION To record precio 7/31/21 MATERIAL INVENTORY CASH To record materi puchat 7/31/21 WORK IN PROCESS CASH To record director 7/31/25 WORK IN PROCESS MATERIAL INVENTORY To record de med 7/31/21 MANUFACTURING OVEREAD MANUFACTURING OVEREAD MANUFACTURING OVEREAD CASH To round in factory and 7/31/21 FINISHED GOODS INVENTORY MANUFACTURING OVEREAD WORK IN PROCESS To record grade All COSTO POSTS ESERY PANCADA FULULIMENT BE JAKOK AGULATED SERATER CORO MANLARI UNE FOR ATASE TAO and Arminia TAA Cash Buda TA1O JE' July Alla July 1 SABCO, Inc. JOURNAL ENTRIES August 3 4 5 Date 6 7 Description Account Debit Credit Ref# 8/1/21 9 10 1 To record draw on line of credit 8/31/21 12 3 4 5 2 6 7 B To record selling and administrative expenses 8/31/21 3 . To record depreciation 8/31/21 To record material puchases 8/31/21 To record direct labor 8/31/21 6 To record direct materials used 8/31/21 7 To record indirect labor factory rant and utilities 8/31/21 To record finished goods Check Figure 360,364.00 880364 00 Test CE 000 ONLARDAN INT LEGATO 16 LAR TEL Thu SABco, Inc. JOURNAL ENTRIES August Date Description Account Debit Credit Refe 8/1/21 1 To record draw on line of credit 8/31/21 2 To record selling and administrative expenses 8/31/21 To record depreciation 8/31/21 4 To record material puchases 8/31/21 To record direct labor 8/31/21 To record direct materials used 8/31/21 3 To record indirect labor factory ront and it 1 8/31/21 2 3 -5 16 To record finished goods Check Figure 00020400 Determine the standard direct material cost per container Determine the standard direct labor cost per container using the following calculation template. (Direct Materials Requirement Worksheet, Table A3) Determine the standard factory overhead cost per container (Factory OH Rate Worksheet, Table A4) Complete the Job Cost Detail Report, Table A5, by inputting the standards determined in steps 1-3. Using the information provided in the narrative, complete the production budget (Table A6), Using the informationprovided in the narrative regarding materials purchasing policies and the shopping list, complete the direct materials budget (Table A7). Using the information from the Job Cost Detail and the Production Budget, complete the Direct labot budget (Table A8) Using the information provided in the narrative complete the Selling and administration budget (Table A9). Using the information provided in the narrative and the preceding schedules, complete the Cash Budget to determine your need to borrow from the line of credit offered by the bank (Table 10). Use the journal entry and T-account templates (Table A11 and 12 respectively), complete the information for July to project financial information for July. Reference your postings with the journal entry number. You will have to post all entries in order to complete the budgeted financinl statements (Table 113). Prepare the financial statement projections for July (Table A13). If your balance sheet balances, this is a good indication that things are going well. Do not continue the work unless it balances Repeat steps 10 and 11 for August - December, 2020 (Table A11, Table A12 and Table A13) Propure a Final Projected Income Stutenent (Tble A15), Balance Sheet (Table A14), and Statement of Cash Flows (Table 116). Ignore income taxes. Answer the following final questions in a Microsoft Word document for Part 1: 1. How much money do the three stockholders have to borrow from the bank before they start to pay it back? When is the loan first needed, and when will it be completely paid back? b. How do you feel about this plan? Is there anything not included in the projections besides payroll taxes, interest and taxes, which we purposely excluded? What would interest expense be in 2021, assuming a 6% rate, with borrowings or payments at the end of each month? Show your calculation. What would income tax expense be, assuming a tux tute of 30%? Would you be comfortable in starting the business? CSABCO, Inc. chose to use a job order cost syster due to smaller production runs and potential shared machinery and equipment with other potential products in the future. Explain why different cost system might be more appropriate if SABCO decided to customize the brownies by the optional additions of cither candy-coated chocolates and/or nats? How would its production data huve looked different using an alternative cost system? Item Actual Cost Containers 10.78 Salt Cocon Chocolate Chips Vanilla Chips Hrown sugar All-Purpose Flour Ganelated Sugar Purchase Quantity 10 clear 32 ox del container 26 or container of Morton Salt 8 oz Store Brand Baking Cocos 24 oz bags Store brand chocolate chips 2-12 oxas Store brand White vanilla baking chips 1-32 oz. packages store brand 1-5 b bags 1-4 lb has Total Cost per Batch of 4 with extra ingredients Estimated Total Cost Details Sold in set of 10 on Amazon. May substitute any clow 32 ounce $ 9.58 container such as a quarter 0.90 2.79 4.48 4.78 2.18 0.99 2.59 418 419 2.27 189 3.07 30.16 1.69 2.39 2888 S Materials Requirements Worksheet Unit of Measure of 4 tar O. Amount Required in Batch of 12 (from your sister's recipe) 12 Quiz delicate with lid 9 9 top. salt 12 or. Cocos 42 oz. Chocolate Chips 42 op. Vanilla white chocolate Chips SO L. Brown Sug S lb. All purpose Flour (0) Sib. Granulated Supe) Materials Qty Required per Container 1 0.75 1.00 3.5 3.5 4.17 6.67 6.67 Materials Qty Required in Batch Materials Cost per Materials Cost Per Materials Cost Per unit Batch of 4 Container 4.00 $ 0.96 3.00 $ 0.008 4.00 $ 0.35 14.00 $ 0.19 14.00 $ 0.20 16.685 0.07 26.685 0.02 26.685 0.04 . OU OZ Totals $ 100,000 Units to be produced 2020 Total Cost of Materials Projected in 2020 S Note the tog has been deated by a native that was a office supply store and you need a ladude these items in the materials cost. Direct Labor Requirements Worksheet Fraction of Hour for each Batch # of Direct Labor Workers # of Man Hours 0.75 Direct Labor Per #of Batches Direct Labor Rate Per Hour Batch Needed in 2020 Dollars in 2020 15.00 S 11.25 25.000 281.250 Containers to be produced 100,000 Direct Labor Cost Per Containers Factory Overhead Rate Worksheet Total Costs Total Projected Factory Overhead Costs Per Month Months of Production Indirect Labor Factory Space Rent Utilities Depreciation Total cost for 2021 holiday seasons Divide by total number of containers produced Overhead applied per container (round to 4 decimals) S 100,000 1 Job Cost Detail Sheet Job Number: 1 4 Containers Product: Sand Art Brownies Estimate Actual Direct Materials Direct Labor Factor Overhead Total Cost Cost Per Container round to 4 decimals * Actual column should not be filled in until after production in part III Production Budget July August September October November Budgeted sales in units Add desired ending inventory Total needs Less beginning inventory Required production Direct Materials Budget July August September October November Required production from production budget Number of containers per batch Number of batches of material needed (production needs) Add desired batches of materials in ending inventory Total Needs Less beginning inventory Required butches Cost per batch (sce shopping list. Includes waste) Cost of purchmes Table AS July August September October November Required production from production budget Number of containers per batch Number of batches of produced Direct Libor cost per batch (nee Job cost detail) Cost of Direct labor October November December Selling and Administrative Expense Budget July August September Administrative Salaries Fulfillment House Expense Credit Card Expense Internet Expense Office Rent Total cash disbursements for Selling and administration expenses July Cash Budget August September October November December Year Beginning cash balance Add cash recipes Collections from customers Toul cash available Less cash disbursement Direct materials Direct Labor Manufacturing everal selling and administrative expenses Equipment purchase Total cash disbursements Preces (deficimcy) of cul available over disbursements Financing Horrowings (at the beginning of the month) Repayments at the end of the year) Interest Tocal financing Ending cash balance JOURNAL ENTRIES July Date Description Debit Credit Rete 7/1/21 CHECKING COMMON STOCK ADOITIONAL PAID-IN CAPITAL To record partner capta 7/1/21 CASH LINE OF CREDIT PAYABLE To record draw on line of cred 7/31/21 ADMINISTRATIVE SALARIES FULLFILLMENT HOUSE EXPENSE INTERNET EXPENSE OFFICE RENT CASH To recorded and administrative experien 7/31/21 EQUIPMENT CASH To record purchase of me 7/31/21 MANUFACTURING OVERHEAD ACCUMULATED DEPRECIATION To record precio 7/31/21 MATERIAL INVENTORY CASH To record materi puchat 7/31/21 WORK IN PROCESS CASH To record director 7/31/25 WORK IN PROCESS MATERIAL INVENTORY To record de med 7/31/21 MANUFACTURING OVEREAD MANUFACTURING OVEREAD MANUFACTURING OVEREAD CASH To round in factory and 7/31/21 FINISHED GOODS INVENTORY MANUFACTURING OVEREAD WORK IN PROCESS To record grade All COSTO POSTS ESERY PANCADA FULULIMENT BE JAKOK AGULATED SERATER CORO MANLARI UNE FOR ATASE TAO and Arminia TAA Cash Buda TA1O JE' July Alla July 1 SABCO, Inc. JOURNAL ENTRIES August 3 4 5 Date 6 7 Description Account Debit Credit Ref# 8/1/21 9 10 1 To record draw on line of credit 8/31/21 12 3 4 5 2 6 7 B To record selling and administrative expenses 8/31/21 3 . To record depreciation 8/31/21 To record material puchases 8/31/21 To record direct labor 8/31/21 6 To record direct materials used 8/31/21 7 To record indirect labor factory rant and utilities 8/31/21 To record finished goods Check Figure 360,364.00 880364 00 Test CE 000 ONLARDAN INT LEGATO 16 LAR TEL Thu SABco, Inc. JOURNAL ENTRIES August Date Description Account Debit Credit Refe 8/1/21 1 To record draw on line of credit 8/31/21 2 To record selling and administrative expenses 8/31/21 To record depreciation 8/31/21 4 To record material puchases 8/31/21 To record direct labor 8/31/21 To record direct materials used 8/31/21 3 To record indirect labor factory ront and it 1 8/31/21 2 3 -5 16 To record finished goods Check Figure 00020400
