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I need help with questions 1 please. 496,000 1. Prepare Thompson's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include:

I need help with questions 1 please.

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496,000 1. Prepare Thompson's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) 2. Prepare Thompson's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. 3. Thompson sold 6,200 sets in 2019, and its actual operating income was as follows: B (Click the icon to view the actual income statement.) Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019, assume the following product costs: (Click the icon to view the product costs.) Thompson Toy Company Income Statement For the Year Ended December 31, 2019 Net Sales Revenue $ Cost of Goods Sold: Variable $ 40,652 Fixed 34 320 Gross Profit Selling and Administrative Expenses: Variable 14,880 Fixed 52,200 74,972 421,028 67,080 353,948 4. What was the effect on Thompson's operating income of selling 600 sets more than the static budget level of sales? Operating Income Other Income and (Expenses): Interest Expense Income Before Income Taxes Income Tax Expense (740) 353,208 17,000 Net Income 336,208 Data Table 5 What is Thompson's state budget variance for operating income? 6. Explain way the flexible budget performance report provides more usetur information to Thompson's managers than the static budget perfermance report. What insights can thompson's managers draw from this performance report? 7. During 2019, Thompson resorded the following cost data: (Click the icon to view the standard cost data.) (Click the icon to view the actual cost osta.) Compute the cost and sciency variances for direct materials and direct labor. 8. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 9. Prepare the standard cost income statement for 2019. 10_Caleulete Thompson's RAL for 2019. To calculate average totat assets, use the Static budget Flexible budget Variable $ 35,060 $ 39.852 Fixed 35,820 $ 35,820 Total 70,880 75,672 Print Done 60,600 (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,100 sets for the first quarter and expected to increase by 200 sets per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. Sets are budgeted to sell for $80 per set. b. Finished Goods Inventory on December 31, 2018, consists of 200 sets at $25 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,900 sets. FIFO inventory costing method used d. Raw Materials Inventory on December 31, 2018, consists of 600 pounds. Direct materials requirement is 3 pounds per set. The cost is $1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 58 per hour. g. Variable manufacturing overhead is $1.60 per set. h. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $4,955 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; 53,600 per quarter for rent; $450 per quarter for insurance, and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 3% of sales. k. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019, uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. p. Thompson desires to maintain a minimum cash balance of $40,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 8% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Thompson Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 15,000 Accounts Receivable 40,000 Raw Materials Inventory 600 Finished Goods Inventory 5,000 Total Current Assets $ Property, Plant, and Equipment: Equipment 199,000 Less: Accumulated Depreciation (42,000) Total Assets $ Liabilities Current Liabilities: Accounts Payable $ Stockholders' Equity Common Stock, no par $ 170,000 Retained Earnings 38,600 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 157,000 217,600 9,000 208,600 217,600 496,000 1. Prepare Thompson's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) 2. Prepare Thompson's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. 3. Thompson sold 6,200 sets in 2019, and its actual operating income was as follows: B (Click the icon to view the actual income statement.) Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019, assume the following product costs: (Click the icon to view the product costs.) Thompson Toy Company Income Statement For the Year Ended December 31, 2019 Net Sales Revenue $ Cost of Goods Sold: Variable $ 40,652 Fixed 34 320 Gross Profit Selling and Administrative Expenses: Variable 14,880 Fixed 52,200 74,972 421,028 67,080 353,948 4. What was the effect on Thompson's operating income of selling 600 sets more than the static budget level of sales? Operating Income Other Income and (Expenses): Interest Expense Income Before Income Taxes Income Tax Expense (740) 353,208 17,000 Net Income 336,208 Data Table 5 What is Thompson's state budget variance for operating income? 6. Explain way the flexible budget performance report provides more usetur information to Thompson's managers than the static budget perfermance report. What insights can thompson's managers draw from this performance report? 7. During 2019, Thompson resorded the following cost data: (Click the icon to view the standard cost data.) (Click the icon to view the actual cost osta.) Compute the cost and sciency variances for direct materials and direct labor. 8. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 9. Prepare the standard cost income statement for 2019. 10_Caleulete Thompson's RAL for 2019. To calculate average totat assets, use the Static budget Flexible budget Variable $ 35,060 $ 39.852 Fixed 35,820 $ 35,820 Total 70,880 75,672 Print Done 60,600 (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,100 sets for the first quarter and expected to increase by 200 sets per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. Sets are budgeted to sell for $80 per set. b. Finished Goods Inventory on December 31, 2018, consists of 200 sets at $25 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,900 sets. FIFO inventory costing method used d. Raw Materials Inventory on December 31, 2018, consists of 600 pounds. Direct materials requirement is 3 pounds per set. The cost is $1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 58 per hour. g. Variable manufacturing overhead is $1.60 per set. h. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $4,955 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,000 per quarter for salaries; 53,600 per quarter for rent; $450 per quarter for insurance, and $1,000 per quarter for depreciation. j. Variable selling and administrative expenses include supplies at 3% of sales. k. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. 1. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019, uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. p. Thompson desires to maintain a minimum cash balance of $40,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 8% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Thompson Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 15,000 Accounts Receivable 40,000 Raw Materials Inventory 600 Finished Goods Inventory 5,000 Total Current Assets $ Property, Plant, and Equipment: Equipment 199,000 Less: Accumulated Depreciation (42,000) Total Assets $ Liabilities Current Liabilities: Accounts Payable $ Stockholders' Equity Common Stock, no par $ 170,000 Retained Earnings 38,600 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 157,000 217,600 9,000 208,600 217,600

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