Q 19.6A (LO 3,4), AP Krause Industries' balance sheet at December 31, 2019. is presented below. Prepare bored cost of goods sold. immen, wenn and blowe sheet S 7.500 73.500 24,000 105,000 Krause Industries Balance Sheet December 31, 2019 Assets Current acts Cash Accounts receivable Finished goods inventory (1.500 units) Total current assets Property, plant and equipment Equipment $40,000 Less Accumulated depredation 10.000 Totals Liabilities and Stockholders' Equity Liabilities Noles puyable Accounts payable Tocal liabilities Stockholders' equity Commonsteck $40.000 Retained carings 25,000 Total stockholders' equity Total Habilities and stockholders' equity 30,000 $135,000 S 25,000 45,000 70,000 65,000 S135,000 Continuing Cases 9-45 Budgetal data for the year 2020 inclock ibu lollowing. 2020 Quarter 4 Total Sales budget (8.000 units at $32) $76.800 $25600 Direct materials used 17.000 62.500 Direct labore 12.500 50.900 Manufacturing owerhead applied 10.000 48.600 Selling and administrative expenses 18,000 75.000 To meet sales requirements and to have 2,500 units of finished goods on hand at December 31. 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be SIX. Krallelse the first-in, firs-our (FIFO) inventory casting method. Interest expense is expected to be $3.500 for the year. Income taxes are expected to he 47 of income before income taxes. In 2020, the company expects to declare and pay an $8,000 cash divided. The cupany's cash budget sbows an expand cash balew of 55,880 at December 31, 2020. All sales and purchases are on account. It is expected that 50% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from supplices 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 2020, the company expects to purchase additional equipment costing 99,000. $4,000 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses Kraese expects to pay $8,000 on the outstanding notes payablo balance plus all interest due and payable to December 31 (included in interest expense $3,500), shovel, Accounts payable at December 31, 2000, includes amounts duc suppliers (see above) plus other accounts payable relating to manufacturing over head of S7,200. Unpaid income taxes at December 31 will be $3.000. Instructions Prepare a budgeted statement of cost of goods sold, budgeted multiple step income statement and retained earings statement for 2020. and a haigetext classified holance sheet at December 31, 20/20 418 Net income $21,900 Total assets $116,600 Continuing Cases - Excel Current Designs CDy Diane Buswell is preparing the 2020 budget for one of Current Designs Fotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the fol- kiwing unit al projects for 2020. Quarter ! 1,000 kayaks Quarter 2 1.500 kayaks Quarter 750 knynks Quarter 4 750 kayaks Current Design policy is to have linished goods ending in colory in a quarter cqual to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1.100 units for the first quarter and 1.500 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 300 roti mokled kayaks Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rupe, seat. hardware, ele.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2012. is 19,4001 ponds. The finishing kids can be assemblies they are needed. As a result. Current Designs does not maintain a significant inventory of the finishing kits, The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost S170 cach. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $15 per hour, and the type II employees are paid S12 per hour. Selling and administrative Sxpenses for this line are expected to be S45 per unit sold plus $7.500px quarter. Manufacturing overhead is assigned at 150s of labor costs. Instructions Prepare the production budget direct materials budget, dar labur budget, manufacturing were Q 19.6A (LO 3,4), AP Krause Industries' balance sheet at December 31, 2019. is presented below. Prepare bored cost of goods sold. immen, wenn and blowe sheet S 7.500 73.500 24,000 105,000 Krause Industries Balance Sheet December 31, 2019 Assets Current acts Cash Accounts receivable Finished goods inventory (1.500 units) Total current assets Property, plant and equipment Equipment $40,000 Less Accumulated depredation 10.000 Totals Liabilities and Stockholders' Equity Liabilities Noles puyable Accounts payable Tocal liabilities Stockholders' equity Commonsteck $40.000 Retained carings 25,000 Total stockholders' equity Total Habilities and stockholders' equity 30,000 $135,000 S 25,000 45,000 70,000 65,000 S135,000 Continuing Cases 9-45 Budgetal data for the year 2020 inclock ibu lollowing. 2020 Quarter 4 Total Sales budget (8.000 units at $32) $76.800 $25600 Direct materials used 17.000 62.500 Direct labore 12.500 50.900 Manufacturing owerhead applied 10.000 48.600 Selling and administrative expenses 18,000 75.000 To meet sales requirements and to have 2,500 units of finished goods on hand at December 31. 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be SIX. Krallelse the first-in, firs-our (FIFO) inventory casting method. Interest expense is expected to be $3.500 for the year. Income taxes are expected to he 47 of income before income taxes. In 2020, the company expects to declare and pay an $8,000 cash divided. The cupany's cash budget sbows an expand cash balew of 55,880 at December 31, 2020. All sales and purchases are on account. It is expected that 50% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from supplices 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 2020, the company expects to purchase additional equipment costing 99,000. $4,000 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses Kraese expects to pay $8,000 on the outstanding notes payablo balance plus all interest due and payable to December 31 (included in interest expense $3,500), shovel, Accounts payable at December 31, 2000, includes amounts duc suppliers (see above) plus other accounts payable relating to manufacturing over head of S7,200. Unpaid income taxes at December 31 will be $3.000. Instructions Prepare a budgeted statement of cost of goods sold, budgeted multiple step income statement and retained earings statement for 2020. and a haigetext classified holance sheet at December 31, 20/20 418 Net income $21,900 Total assets $116,600 Continuing Cases - Excel Current Designs CDy Diane Buswell is preparing the 2020 budget for one of Current Designs Fotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the fol- kiwing unit al projects for 2020. Quarter ! 1,000 kayaks Quarter 2 1.500 kayaks Quarter 750 knynks Quarter 4 750 kayaks Current Design policy is to have linished goods ending in colory in a quarter cqual to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1.100 units for the first quarter and 1.500 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 300 roti mokled kayaks Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rupe, seat. hardware, ele.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2012. is 19,4001 ponds. The finishing kids can be assemblies they are needed. As a result. Current Designs does not maintain a significant inventory of the finishing kits, The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost S170 cach. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $15 per hour, and the type II employees are paid S12 per hour. Selling and administrative Sxpenses for this line are expected to be S45 per unit sold plus $7.500px quarter. Manufacturing overhead is assigned at 150s of labor costs. Instructions Prepare the production budget direct materials budget, dar labur budget, manufacturing were