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Wilson Inc. manufactures basketballs for $20/unit. Wilson Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: Q1 Q2

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Wilson Inc. manufactures basketballs for $20/unit. Wilson Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: Q1 Q2 Q3 24 10,000 11,000 12,000 14,000 The Basketball's selling price is $35 each. Please prepare the Sales Budget. Sales Budget For the year ended December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Expected Sales (units) 10,000 11,000 12,000 14,000 Selling Price /unit) Total Budgeted Sales Wilson Inc does not collect all the sales revenue in the period of sale. The accounts receivable department has budgeted for 85% of sales revenue to be collected in the period of sale and 15% to be collected in the next period. The accounts receivable beginning balance is $80,000 > Please prepare the Schedule of Expected Cash Collections Quarter 1 Schedule of Expected Cash Collections Quarter 2 Quarter 3 Quarter 4 Accounts Receivable, beginning balance 80,000 First quarter sales Second quarter sales Third quarter sales Fourth quarter sales Total cash collections Wilson Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods inventory of 20% of next periods sales. The assumed beginning inventory of finished goods for 01 and the desired ending inventory of Q4 is provided. Please prepare the Production Budget. Production Budget For the Year Ended December 31, 2019 Quarter 2 Quarter 3 Quarter 1 Quarter 4 Budgeted Sales Add: Desired ending inventory of finished goods 3,000 Total needs Deduct: Beginning inventory of finished goods 2,000 Required Production The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/ke Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials The assumed 01 beginning inventory of raw materials and the ending inventory for Q4 is provided Please prepare the Direct Materials Budget Direct Materials Budget For the Year Ended December 31, 2019 Quarter 1 Quarter 2 Cuarter 3 Quarter 4 Required Production in Cases Production needs Add: Desired ending inventory of raw materials 22,500 Total needs Deduct: Beginning inventory of raw materials 21,000 Raw materials to be purchased Cost of raw materials to be purchased The Accounts Payable Department has advised Wilson Inc. that they expect to pay for Direct Materials 50% in the period of purchase and 50% in the next period. Accounts Payable beginning balance is provided. Please prepare the Schedule of Expected Cash Disbursements for Materials. Schedule of Expected Cash Disbursements for Materials Quarter 1 Quarter 2 Quarter 3 Quarter 4 Accounts Payable beginning balance $25,800 First quarter purchases Second quarter purchases Third quarter purchases Fourth quarter purchases Total cash disbursements The Human Resources Department has indicated that the Direct Labour Cost per hour is $7.50 and the Production Department has indicated that the # of Direct Labour Hours per unit is 0.90. Please prepare the Direct Labour Budget: Direct labour Budget For the Year Ended December 31, 2019 Q1 Q2 Q3 94 Required Production in cases Total direct labour hours needed Total direct labour cost Wilson Inc. has determined that the Variable Overhead Rate per Direct labour hour is $1.75 and the fixed manufacturing overhead is $6,200 per quarter and depreciation is $1,500. Please prepare the Manufacturing Overhead Budget Manufacturing Overhead Budget 94 Q1 92 Q3 Budgeted direct labour hours $1.75 $1.75 $1.75 $1.75 Variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less: Depreciation Cash disbursement for manufacturing overhead diting Voice Sent Wilson Inc. budgeted for fixed selling and administrative expenses below. The variable selling and administrative rate based on budgeted units k $11/hour Please prepare the Selling and Administrative Expense Budget. Feed selling and administrative expenses based on units sold Advertising $3,000 Executive Salaries 850 02 Insurance 100 Q3 Insurance 2,000 04 Property taxes 4,300 Depreciation 10,000 Selling and Administrative Expense Budget Q1 Q2 Q3 Budgeted Sales Variable selling & admins expense $11 $11 $11 $11 Total budgeted variable selling & | administrative expense Budgeted fixed selling & admin. expenses: Advertising Executive Salaries Insurance Property taxes birou 09 England en 04 Editing Voice 03 Insurance 04 Property taxes Depreciation 2.000 4,300 10,000 Selling and Administrative Expense Budget Q1 Q2 Q3 Q4 Budgeted Sales Variable selling & admins expense Total budgeted variable selling & administrative expense $11 $11 $11 $11 Bucigeted fixed selling & admin. expenses: Advertising Executive Salaries Insurance Property taxes Depreciation Total budgeted fixed selling & admin, expense Total budgeted selling & admin, expenses Less: Depreciation Cash disbursements for selling & administrative expenses Styles The beginning cash balance has been provided and equipment purchases and dividends has been provided. > Please prepare the cash budget. Voice Cash Budget For the Year Ended December 31, 2019 02 Q3 Q1 $42,500 Q4 Cash balance, beginning Add Receipts Collection from customers Total Cash available before current financing Deduct disbursements Direct materials Direct labour Manufacturing overhead Selling and administrative Equipment purchases Dividends Total Disbursements Excess (deficiency) of cash available over disbursements 60,000 500 50,000 500 10.000 500 20,000 500

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