ACCT331-Mod3ProjectOne

ACCT331-Mod3ProjectOne - BALANCE SHEET DECEMBER 31, 20XX...

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BALANCE SHEET DECEMBER 31, 20XX ASSETS CASH $30,000 ACCOUNTS RECEIVABLE 337,500 RAW MATERIALS INVENTORY 40,400 FINISHED GOODS INVENTORY 176,300 COST $10,000,000 LESS ACCUMULATED DEPRECIATION 3,000,000 NET VALUE 7,000,000 TOTAL ASSETS $7,584,200 LIABILITES AND EQUITY ACCOUNTS PAYABLE $300,000 COMMISSIONS PAYABLE 25,000 LINE OF CREDIT PAYABLE 375,000 TOTAL LIABLITIES 700,000 COMMON STOCK 5,000,000 RETAINED EARNINGS 1,884,200 TOTAL EQUITY 6,884,200 TOTAL LIABILITIES AND EQUITY $7,584,200 SALES FORECAST: DECEMBER UNITS SOLD AND PRODUCED 5,000 SALES PRICE PER UNIT $225.00 EXPECTED INCREASE IN UNIT SALES EACH MONTH 5% SALES ARE COLLECTED AS FOLLOWS: COLLECTED IN THE MONTH OF SALE 70% COLLECTED IN THE MONTH FOLLOWING 30% FINISHED GOODS INVENTORIES DECEMBER, 20XX UNITS 1000 DESIRED ENDING INVENTORY OF NEXT MONTH'S SALES 20% OF UNITS UNIT COST OF FINISHED GOODS DECEMBER, 20XX $176,300 BALANCE SHEET
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RAW MATERIALS INVENTORIES SQ FT OR UNITS UNIT COST INV COST DECEMBER, 20XX: WOOD, IN SQUARE FEET 2,000 $20.00 $40,000.00 LEGS, IN UNITS 200 $2.00 400 TOTAL $40,400.00 ONE TABLE'S MATERIALS COST PER TABLE: WOOD, IN SQUARE FEET 3 $20.00 $60.00 LEGS, IN UNITS 4 $2.00 $8.00 TOTAL DM COST PER TABLE $68.00 DESIRE ENDING INVENTORY OF NEXT MO. PRODUCTION 10% SQ FT OR UNITS RAW MATERIALS ARE PAID IN THE MONTH FOLLOWING PURCHASE DON'T EXPECT PRICES TO CHANGE. DIRECT LABOR # HOURS PER RATE PER UNIT TABLE HOUR COST FINISHING 3.00 $15.00 $45.00 ASSEMBLY 0.20 $9.00 $1.80 $46.80 PAYMENT OF LABOR COSTS: ALL LABOR COST IS PAID IN THE MONTH EXPENSE IS INCURRED.
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MONTHLY FIXED OVERHEAD DEPRECIATION ON PRODUCTION PPE $20,000 SALARIES AND FRINGES 50,000 INSURANCE 10,000 PROPERTY TAXES 2,000 UTILITIES 20,000 SUPPLIES 2,500 CAFETERIA 3,000 TOTAL FIXED COST $107,500 PAYMENT OF EXPENSES: ALL COSTS ARE PAID IN THE MONTH INCURRED EXCEPT FOR INSURANCE AND PROPERTY TAXES. BOTH ARE PAID AT THE END OF EACH QUARTER. VARIABLE OVERHEAD (VARIES WITH UNITS PRODUCED) PER UNIT COST INDIRECT MATERIALS $10.00 INDIRECT LABOR 10.00 MACHINE SET UPS 5.00 INSPECTION 15.00 TOTAL VARIABLE COST PER UNIT $40.00 PAYMENT OF EXPENSES: ALL ARE PAID IN THE MONTH INCURRED. COMPUTATION OF OVERHEAD COST PER UNIT DECEMBER 20XX 5,000 FIXED OVERHEAD PER UNIT $21.50 VARIABLE OVERHEAD PER UNIT $40.00 TOTAL OVERHEAD PER UNIT $61.50 THE UNIT COST WILL OBVIOUSLY CHANGE EACH MONTH SINCE PART OF OVERHEAD IS FIXED, SO UNIT COST WILL VARY WITH NUMBER OF UNITS COMPUTATION OF TOTAL MANUFACTURING COST PER UNIT DECEMBER 20XX DIRECT MATERIAL COST $68.00 DIRECT LABOR COST $46.80 OVERHEAD COST $61.50 TOTAL COST $176.30 COST WILL CHANGE SINCE, AS NOTED ABOVE, UNIT OVERHEAD COSTS WILL CHANGE WITH A CHANGE IN UNITS PRODUCED. UNITS
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ACCT331-Mod3ProjectOne - BALANCE SHEET DECEMBER 31, 20XX...

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