Instructions,
Prepare the following budgets for the year. Show data for each product. Quarterly budgets should be prepared.
a. Sales
b.Production
C. Direct material
d. Direct labor
e. Manfucturing overhead
f. Selling and administrative expense
g. Multiple-step budgeted income statement
h. schedules for ( 1 ) expected collections from customrs and ( 2 ) expected payments for direct materials purchases
i. Cash budget
1437238/thintafile%2cdocx&action=edit&wdNewAndOpenCt=1617242487097&wdPreviousSession e0bf4840-a56f-409b-b105 W + Alt) ca o 2 ilgis 1 |: Case Study (1) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020 Accounting assistants furnish the data shown below Produc Product t NL 60 NL 50 Sales budget: Anticipated volume in units 500 800 400 600 $60 2,000 1.800 2,200 1,500 $95 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Unit selling price 20% Production budget: of the same quarter's expected sales 20% units Beginning finished goods 200 $7000 Desired ending finished goods each quarter Units Cost 300 $18000 Direct materials budget: 2 3 4 10% Direct materials per unit (pounds) item (0) item (Y) Desired ending direct materials pounds $3 Cost per pound $2 Cost per pound Of same quarter's production requirements Beginning direct materials pounds 10% 150 $2 200 54 Units Cost per pound Direct labor budget: 2 Direct labor tune per unit Direct labor rate per hour Manufacturing Overhead Variable overhead costs per direct tabor hour $05 $15 $0.75 30 25 Indirect materials Indirect labor Utilities Maintenance Fixed overhead costs per quarter $2,300 is related to blogs and $1.500 is attributable to equipment $20,000 Supervisory salaries $3,800 Depreciation Insurand $9,000 37238thint=file%2cdocx&action=edit&wdNewAnd OpenCt = 1617242487097&wd Previous Session webf484e-a56f-409b-b100 (Alt) 1 I would ! A $9,000 Insuranc e $5,700 Maintenance 1 Selling and Administrative Expense Variable costs per dollar of sales 0.75% 4.50% 2.75% Delivery expense Sales commissions Utilities Fixed overhead costs per quarter $15,000 Sales salaries $7,500 Office salaries $1,000 Depreciation $600 is related to buildings and $400 is attributable to equipment $1,500 55,000 $900 Insurance Advertising Renaire Expense Al sales are on account Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase, All other items above are paid in the month incurred Other data: 1 Accounts Receivable: December 2019,529,000, are expected to be collected in 2020, the first quarter $17.400, and second quarter $11.600 2 Accounts Payable: December 2016, $10,800, are expected to be collected in the first quarter 2020 3. Other receipts January-proceeds from sale of securities $2,000 4. Other disbursements April-payment of $20,000 for Equipment July.Notes payable of $9,800 were redeemed at their face value for cash 5. Income taxes are estimated to be $9,000 Paid in three equal quarterly installments started at the end of quarter 2 6. Deleon uses the FIFO inventory method for evaluating all endings inventories 7. The company's cash balance on January 1, 2020, is expected to be $180,000. The company wants to maintain a minimum cash balance of $85,000 8. Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: 5560) Deleon Inc. balance sheet at December 31, 2019. is presented below Deleon Inc Balance Sheet December 31, 2019 Assets Current assets 180.000 Cash Sonntenas 2407097wPreviousSessionneObf484e-a56f-409b-b1 W + All) was e 1 Ao A 180,000 Casn 29,000 2,000 Accounts receivable Marketable securities Finished goods inventory Raw Material inventory Total current assets 25,000 1.100 26,100 237,100 Property, plant, and equipment Land 150,000 230,000 Buildings 172,500 -57,500 Less Accumulated depredation 160,000 Equipment 120,000-40,000 Less: Accumulated depredation 442,500 Total property, plant, and equipment 679,600 Total assets 10.800 9,800 Liabilities and Stockholders Equity Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock 20,600 500.000 159.000 Retamed eamings 659.000 Total stockholders' equity 679.600 Total liabilities and stockholders equity instructions Prepare the following budgets for the year Show data for each product Quarterly budgets should be prepared a Sales b Production c Direct materials d Direct labor e Manufacturing overhead LG 1437238/thintafile%2cdocx&action=edit&wdNewAndOpenCt=1617242487097&wdPreviousSession e0bf4840-a56f-409b-b105 W + Alt) ca o 2 ilgis 1 |: Case Study (1) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020 Accounting assistants furnish the data shown below Produc Product t NL 60 NL 50 Sales budget: Anticipated volume in units 500 800 400 600 $60 2,000 1.800 2,200 1,500 $95 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Unit selling price 20% Production budget: of the same quarter's expected sales 20% units Beginning finished goods 200 $7000 Desired ending finished goods each quarter Units Cost 300 $18000 Direct materials budget: 2 3 4 10% Direct materials per unit (pounds) item (0) item (Y) Desired ending direct materials pounds $3 Cost per pound $2 Cost per pound Of same quarter's production requirements Beginning direct materials pounds 10% 150 $2 200 54 Units Cost per pound Direct labor budget: 2 Direct labor tune per unit Direct labor rate per hour Manufacturing Overhead Variable overhead costs per direct tabor hour $05 $15 $0.75 30 25 Indirect materials Indirect labor Utilities Maintenance Fixed overhead costs per quarter $2,300 is related to blogs and $1.500 is attributable to equipment $20,000 Supervisory salaries $3,800 Depreciation Insurand $9,000 37238thint=file%2cdocx&action=edit&wdNewAnd OpenCt = 1617242487097&wd Previous Session webf484e-a56f-409b-b100 (Alt) 1 I would ! A $9,000 Insuranc e $5,700 Maintenance 1 Selling and Administrative Expense Variable costs per dollar of sales 0.75% 4.50% 2.75% Delivery expense Sales commissions Utilities Fixed overhead costs per quarter $15,000 Sales salaries $7,500 Office salaries $1,000 Depreciation $600 is related to buildings and $400 is attributable to equipment $1,500 55,000 $900 Insurance Advertising Renaire Expense Al sales are on account Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase, All other items above are paid in the month incurred Other data: 1 Accounts Receivable: December 2019,529,000, are expected to be collected in 2020, the first quarter $17.400, and second quarter $11.600 2 Accounts Payable: December 2016, $10,800, are expected to be collected in the first quarter 2020 3. Other receipts January-proceeds from sale of securities $2,000 4. Other disbursements April-payment of $20,000 for Equipment July.Notes payable of $9,800 were redeemed at their face value for cash 5. Income taxes are estimated to be $9,000 Paid in three equal quarterly installments started at the end of quarter 2 6. Deleon uses the FIFO inventory method for evaluating all endings inventories 7. The company's cash balance on January 1, 2020, is expected to be $180,000. The company wants to maintain a minimum cash balance of $85,000 8. Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: 5560) Deleon Inc. balance sheet at December 31, 2019. is presented below Deleon Inc Balance Sheet December 31, 2019 Assets Current assets 180.000 Cash Sonntenas 2407097wPreviousSessionneObf484e-a56f-409b-b1 W + All) was e 1 Ao A 180,000 Casn 29,000 2,000 Accounts receivable Marketable securities Finished goods inventory Raw Material inventory Total current assets 25,000 1.100 26,100 237,100 Property, plant, and equipment Land 150,000 230,000 Buildings 172,500 -57,500 Less Accumulated depredation 160,000 Equipment 120,000-40,000 Less: Accumulated depredation 442,500 Total property, plant, and equipment 679,600 Total assets 10.800 9,800 Liabilities and Stockholders Equity Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock 20,600 500.000 159.000 Retamed eamings 659.000 Total stockholders' equity 679.600 Total liabilities and stockholders equity instructions Prepare the following budgets for the year Show data for each product Quarterly budgets should be prepared a Sales b Production c Direct materials d Direct labor e Manufacturing overhead LG
