Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I will only need answers..Hello, I need assistance answering these questions.. please Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

I will only need answers..Hello, I need assistance answering these questions.. please

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,470 units during the second quarter. Other information is as follows: Direct labor pEgpnctiJirished unit requires 5 direct labor hours, at a cost of $8 Variable overhead Applied at the rate of $10 per direct labor hour. Fixed overhead Budgeted at $520,000 per quarter 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Total labor hours needed Budgeted variable overhead Budgeted xed overhead Budgeted total overhead Exercise 20-15 Manufacturing: Direct maeterils. direct labor. and overhead budgets L0 P1 MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $5 per pound and 0.? direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $12,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's materials requirement. At the end of August the company had 4,080 pounds of direct materials in inventory. The companys production budget reports the following. Production Budget September October November Units to be produced 5,500 7,000 6,300 (1) Prepare direct materials budgets for September and October. Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) Direct material cost per lb. Total budgeted direct materials (2) Prepare direct labor budgets for September and October. (Round "DL hours required per unit" answers to one decimal place.) Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor (3) Prepare factory overhead budgets for September and October. Total direct labor hours needed _- Budgeted xed overhead _- Total budgeted factory overhead _- 03 20-21 Cash receipts. with uncollectible accounts LO P2 Wells Company reports the following sales forecast September, $48,000; October, $57,000; and November, $72,000. All sales are on account. Collections of credit sales are received as follows: 25% in the month of sale, 60% in the rst month after sale, and 10% in the second month after sale. 5% of all credit sales are written off as uncollectible. Prepare a schedule 0! cash receipts tor November. Cash receipts from November cash sales Collection of October's sales _ Collection or September's sales _ Total cash receipts - OS 20-22 Computing budgeted accounts receivable LO P2 Lighthouse Company anticipates total sales for June and July of $480,000 and $358,000, respectively. Cash sales are normally 70% of total sales. Of the credit salesI 15% are collected in the same month as the sale, 60% are collected during the rst month after the sale, and the remaining 25% are collected in the second month. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31. $ moo 08 20-23 Budgeted loan activity L0 P2 Messers Company is preparing a cash budget for Febmary. The company has $15,000 cash at the beginning of February and anticipates $71,000 in cash receipts and $101,000 in cash disbursements during February. What amount, if any, must the company bonow during February to maintain a $5,000 cash balance? The company has no loans outstanding on Febmary 1. (Negative cash balances, If any, should be Indicated with minus sign.) Beginning cash balance _ Total cash available _ Preliminary cash balance _ Ending cash balance _ value: 1.20 points 03 20-24 Cash budget LO P2 Use the following information: 1:. Beginning cash balance on March 1, $82,000. b. Cash receipts from sales, $309,000. 1:. Budgeted cash disbursements for purchases, $133,000. 11. Budgeted cash disbursements for salaries, $T5,000. e. Other budgeted cash expenses, $38,000. f. Cash repayment of bank loan, $13,000. Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31. (Negative balance and Loan repayment amount should be Indicated with minus sign.) Total cash available Cash disbursements: Total cash disbursements Exercise 20-18 Budgeted cash receipts L0 P2 Jasper Company has sales on account and for cash. Specically, 58% of its sales are on account and 42% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $517,000 for April, $527,000 for May, and $552,000 for June. The beginning balance of Accounts Receivable is $299,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. - - Total sales - $ 517.000 $ 527,000 $ 552,000 Cash receipts from: Cash sales Collection of accounts receivable Total cash receipts Exercise 2034 Activity-based budgeting LO A1 Render Co. CPA is preparing activity-based budgets for 2015. The partners expect the rm to generate billable hours for the year as follows: Data entry 1,120 hours Auditing 2,360 hours Tax 2,200 hours Consulting 350 hours The company pays $11 per hour to data-entry clerks, $39 per hour to audit personnel. $51 per hour to tax personnel, and $51 per hcurtc consulting personnel. Prepare a schedule of budgeted labor costs for 2015 using activity-based budgeting

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

Strategic Managerial Accounting: Hospitality, Tourism & Events Applications

Authors: Tracy Jones, Helen Atkinson, Angela Lorenz, Peter Harris

6th Edition

9781908999023, 978-1908999016

More Books

Students also viewed these Accounting questions

Question

Go, do not wait until I come

Answered: 1 week ago