{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:25:35-04:00", "answer_date": "2024-06-29 01:25:35", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4438521", "url": "\/study-help\/questions\/need-help-with-question-5-required-information-the-following-information-4438521", "question_creation_date_js": "2024-06-29T01:25:35-04:00", "question_creation_date": "Jun 29, 2024 01:25 AM", "meta_title": "[Solved] need help with question 5 Required inform | SolutionInn", "meta_description": "Answer of - need help with question 5 Required information [The following information applies to the questions displayed below. ] | SolutionInn", "meta_keywords": "help,question,5,required,information,applies,questions,displayed,below,endless,mountain,company", "question_title_h1": "need help with question 5 Required information [The following information applies to the questions displayed below. ] Endless Mountain Company manufactures a single product that", "question_title": "need help with question 5 Required information [The following information applies to", "question_title_for_js_snippet": "need help with question 5 Required information The following information applies to the questions displayed below Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts The company sells its product to retailers throughout the northeastern quadrant ofthe United States It is in the process of creating a master budget for 2019 and reports a balance sheet at December 31, 2018 as follows Endless Mountain Company Balance Sheet December 31, 2018 Assets Current assets Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets $349,700 Plant and equipment Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net 608,000 Total assets $957,700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $158,000 Stockholders' equity Common stock $ 419,800 Retained earnings 379,900 Total stockholders' equity 799,700 Total liabilities and stockholders' equity $957,700 I an 1 pm a 7 477 Ill anl 6 The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1 4, respectively Notice that the company experiences peak sales in the second and fourth quarters The budgeted selling price for the year is $32 per unit The budgeted unit sales for the first quarter of 2020 is 13,000 units All sales are on credit Uncollectible accounts are negligible and can be ignored Seventyve percent of all credit sales are collected in the quarter of the sale and 25 are collected in the subsequent quarter Each quarter's ending finished goods inventory should equal 15 ofthe next quarter's unit sales Each unit of nished goods requires 3 5 yards of raw material that costs $3 00 per yard Each quarter's ending raw materials inventory should equal 10 of the next quarter's production needs The estimated ending raw materials inventory on December 31, 2019 is 5,000 yards Seventy percent of each quarter's purchases are paid for in the quarter of purchase The remaining 30 of each quarter's purchases are paid in the following quarter Direct laborers are paid $18 an hour and each unit of nished goods requires 0 25 direct labor hours to complete All direct labor costs are paid in the quarter incurred 7 The budgeted variable manufacturing overhead per direct labor hour is $3 00 The quarterly fixed manufacturing 10 11 overhead is $150,000 including $20,000 of depreciation on equipment The number of direct laborhours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (excluding depreciation) are paid in the quarter incurred The budgeted variable selling and administrative expense is $1 25 per unit sold The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries ($64,000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000) All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred The company plans to maintain a minimum cash balance at the end of each quarter of $30,000 Assume that any borrowings take place on the rst day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes a simple interest rate of 3 per quarter on any borrowings Dividends of $15,000 will be declared and paid in each quarter The company uses a lastin, firstout (LIFO) inventory flow assumption This means that the most recently purchased raw materials are the rstout to production and the most recently completed finished goods are the rst out to customers Required 1 H Required 2 H Required 3 H Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly manufacturing overhead budget (Round Budgeted direct labor hours answers to 1 decimal place ) Budgeted direct labor hours Variable manufacturing overhead per direct labor hour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year", "question_description": "

need help with question 5 <\/p>

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\"image\"image\"image<\/div><\/div><\/div> Required information [The following information applies to the questions displayed below. ] Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant ofthe United States. It is in the process of creating a master budget for 2019 and reports a balance sheet at December 31, 2018 as follows: Endless Mountain Company Balance Sheet December 31, 2018 Assets Current assets: Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets $349,700 Plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net 608,000 Total assets $957,700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $158,000 Stockholders' equity: Common stock $ 419,800 Retained earnings 379,900 Total stockholders' equity 799,700 Total liabilities and stockholders' equity $957,700 I an 1 pm\\\" a 7 .477 Ill anl- \\\\ 6. . The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2020 is 13,000 units. . All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventyve percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. . Each quarter's ending finished goods inventory should equal 15% ofthe next quarter's unit sales. . Each unit of nished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2019 is 5,000 yards. . Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter. Direct laborers are paid $18 an hour and each unit of nished goods requires 0.25 direct labor~hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing 10. 11. overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct laborhours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. . The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries ($64,000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred. . The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that any borrowings take place on the rst day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. Dividends of $15,000 will be declared and paid in each quarter. The company uses a lastin, firstout (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the \\\"rstout\" to production and the most recently completed finished goods are the \\\"rst~out\\\" to customers. Required 1 H Required 2 H Required 3 H Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly manufacturing overhead budget. (Round \"Budgeted direct labor hours\" answers to 1 decimal place.) Budgeted direct labor hours Variable manufacturing overhead per direct labor- hour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "3319833022", "uri": "\/textbooks\/theory-and-applications-of-non-integer-order-systems-8th-conference-on-non-integer-order-calculus-and-its-applications-zakopane-poland-1st-edition-9783319833026", "name": "Theory And Applications Of Non Integer Order Systems 8th Conference On Non Integer Order Calculus And Its Applications Zakopane Poland", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:25:35", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/evaluate-the-integral-where-v-is-a-sphere-of-radius", "description": "Evaluate the integral (where v is a sphere of radius R, centered at the origin) by two different methods, as in Ex.1.16. 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