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Please do not use AI as I have seen many discrepancies in the previous questions. Take your time and answer logically , Properly balancing the

Please do not use AI as I have seen many discrepancies in the previous questions.
Take your time and answer logically, Properly balancing the amount of total assets and liabilities and equity in the schedule 10
Question
You have been hired as the Controller for the crayon department of Crayola Canada (CC). The Crayon Department in
Canada will begin operations on January 01,2024. The first task you have been assigned is the creation of the 2024
budget. Your CFO has provided you with some notes detailing the department\'s operations (see below) and would
like you to use the notes to prepare all ten (10) schedules of the 2024 budget. Crayola Canada has a calendar fiscal
year (January December).
Sales
1. Sales will be 150,000 boxes per month except for August (225,000 boxes) and September (335,000 boxes)
2. Monthly sales in 2025 will be 10% higher, than monthly sales in 2024
3. A box of crayons will sell for $11.49 in January and increase in price 2.5% each month for the rest of the year.
4.65% of sales are collected in the month of the sale, 25% the following month, and 10% in the second month after
the sale
5. To ensure a consistent supply of crayons, inventory at the end of each month must be 15% of the next month\'s
total budgeted sales
Costs - Production
6. Each box contains 18 crayons
7. Each crayon is made of one point five (1.5) grams of wax
8. Each crayon contains point seven five (0.75) grams of colored dye
9. Each crayon contains one (1) paper sleeve
10. Each gram of wax costs fifteen cents ($0.15)
11. Each gram of dye costs twelve cents ($0.12)
12. Each paper sleeve costs two cents ($0.02)
13. The box the crayons are packaged in, costs six cents ($0.06)
14. Each box comes with a crayon sharpener, which costs twenty-eight cents ($0.28)
15. All direct material costs are paid for the month after they are purchased (ex: June materials are paid for in July)
16. Each employee can produce 34 crayons a minute
17. Employees are paid $35.00 per hour
18. All employees are paid on the 15th and 28th of every month
19. The production warehouse supervisor receives a salary of $100,000 per year
20. There are 8(eight) employees who are directly involved with the manufacturing of the crayons
21. The production facility has a fixed-rate utilities contract with Enmax where they will pay $3,800 per month from
May to September and $4,600 per month from October to April
22. Variable Manufacturing Overhead will be $500 per day. The factory operates 365 days per year, so every day per
month must be accounted for
23. The executive team receives a bonus of $0.925 for every box of crayons produced
24. The shipping cost is $0.55 for every box of crayons sold
Costs Equipment
25. CC has two types of assets, production assets and administration assets
26. The production asset is the manufacturing equipment.
27. The administration asset is the administration building.
28. The depreciation on the manufacturing equipment is $12,500 per month
29. CC will use straight-line depreciation on all production and administration assets
30. CC will purchase manufacturing equipment in January at a cost of $580,000
Accounting 2400 Final Exam Spring 2024
Costs Buildings
31. There are two buildings that CC utilizes in the operations of their company
32. The first building, the administration building was purchased in January for $750,000
33. The second building, the production facility is currently being rented for $8,000 per month
34. In October 2024, CC plans to renovate the lunchroom of their administration building. The renovation will cost
$50,000 and construction will be completed at the end of September. The renovation will be paid for in cash
after the project has been completed (September)
35. The depreciation on the administration building will be $5,000 per month until September 2024, then it will
jump to $8,000 per month when the lunchroom has been renovated
36. Insurance for the administration building is $2,000 per month
37. Insurance for the production facility is $5,000 per month
Costs - Other
38. The administration team receives salaries totaling $50,000 per month
39. Two marketing campaigns will be run on Canadian television, the first one will run from January to June, where
ads will be run consistently each month for $5,000 per month. The second one will be a Back to School
campaign which will run in August and will cost $15,000 for the month
40. Payment for all marketing campaigns will be made in December 2024
41. CC has access to a line of credit from the Bank of Montreal, which carries an interest rate of 8.0%
Notes
42. CC would like to keep a cash balance of at least $15,000 at the end of every month
43. CC will pay dividends of $4,000,000 in November 2024
 
Required
 
- Read the instructions on the cover of this exam.
- Prepare a full, 10-schedule budget.

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