Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a budgeted statement of cost of goods sold. To meet sales requirements and to have 2,650 units of finished goods on hand at December

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare a budgeted statement of cost of goods sold. To meet sales requirements and to have 2,650 units of finished goods on hand at December 31,2022 , the production budget shows 9,540 required units of output. The total unit cost of production is expected to be $18, Crane uses the first-in, first-out (FiFO) inventory costing method. Interest expense is expected to be $3,710 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $8,480 cash dividend. The company's cash budget shows an expected cash balance of $25,416 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $9,540,$4,370 of depreciation expense on equipment is included in the budget-data and split equally between manufacturing overhead and selling and administrative expenses, Crane expects to pay $8,480 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,710, above). Accounts payable at December 31,2022 , includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $7.632. Unpaid income taxes at December 31 will be $5,300. Crane Industries' balance sheet at December 31, 2021, is presented below. Budgeted data for the year 2022 include the following: To meet sales requirements and to have 2,650 units of finished goods on hand \&s December 31,2022 , the productic 9,540 required units of output. The total unit cost of production is expected to be $18. Crane uses the first-in, firstinventory costing method. Interest expense is expected to be $3,710 for the year. Income taxes are expected to be? before income taxes. In 2022, the company expects to declare and pay an $8.480 cash dividend. The company's cash budget shows an expected cash balance of $25,416 at December 31, 2022. All sales and purchi account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is colle Budgeted data for the year 2022 include the following

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

Step: 3

blur-text-image

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

Employee Relations Audits

Authors: C. Jennings, W. E. J. McCarthy, R. Undy

1st Edition

0415786614, 978-0415786614

More Books

Students also viewed these Accounting questions

Question

Define Administration?

Answered: 1 week ago

Question

Define Decision making

Answered: 1 week ago

Question

What are the major social responsibilities of business managers ?

Answered: 1 week ago

Question

What are the skills of management ?

Answered: 1 week ago