chapter 20 - AEZD-S ;, CPAs, are preparing their service...

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Unformatted text preview: AEZD-S ;, CPAs, are preparing their service revenue [sales] budget for the coming year [2010). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 QuarterS Quarter4 ROCHE AND YOUNG, CPA'S Sales Revenue Budget mar 31, 2010 Totals yr 1 +m Total Rev. D_em Billahle Hours Billable Rate Total Rev. 4 3‘; 5 $3333 - - a 103—165830 Audltlng 9,120 $84 $760080 =5571160 I I b .r 2 ,brllahle hours, billable rate, and total Tax 10,920 91 993,2?0 $ 84 s 152880 9]. 245700 . C 103 165830 Consulting 6.440 103 663,320 —5 554410 Totals Auditing 9120 $ 84 S ?56080 Tax 10970 91 998270 Consulting 6440 103 653320 Tntnlc 1*» 24276?0 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2010 sales budget is as follows. Quarter HD-240 1 5,2oo 2 2,160 I a 8.360 I i, 10.270 The January 1, 2010, inventory of HD-240 is 2,830 units. Management desires an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2011 are expected to be 30% higher than sales in the same quarter in 2010. Complete the quarterly production budgets for each quarter and in total for 2010. TURNE‘I’ COMPANY Production Budget For the Year Ending December 31, 2010 Moreno Industries has adopted the following production budget forthe first 4 months of 2011. Desired ending direct materials = 30% of next month's production needs. _ L 10270 FEUl Llflly 0,1LU HlJlll ‘1,“1'1U . . . 3380 Each unit requiresJ pounds of raw materials costing $4 per pound. On December 31, 2010, the ending raw materials inventory was 9,420 pounds. Management wants 13650 a raw materials inventory at the end of the month equal to 30% of next month‘s production requirements. 5135 Complete the direct materials purchases budget by month for the first quarter. 3515 31540 AE _? MORENO INDUSTRIES Neely, Inc, is preparing its direct labor budget for 2010 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,290 3 35,430 25,420 4 30,220 Each unit requires 1.8 hours ofdirect labor. annlnta tho rlrror't Izhnr hirrlnal' Fnr 70110 Wan:- rarn: :ra pynnr‘l‘orl to ho C16 fnr than first '2 nrrarturc and 5:17 fnr nirnrters 3 and 4. Complete the schedule of expected collections from customers for March. NIU COMPANY Expected Collections from Customers March March cash sales 5 149688 _ Collection of March credit sales 22453 WS. Year Collection of February credit sales 91476 30220 Collection of Januaryr credit sales 59875 Purchases Total collections 5 323492 I ' ‘ H I ‘ re month following sale, and 36% in the second month following salt '4 471'" A - H -- 140% in the month of purchase, and 60% in the month following March cash sales (40% X $374,220] $149,600 Collection of March credit sales [[6044 >< 5324,1220) x 10%] 22,453 ‘ ' f Collection of February credit sales [160% X $304,920) X 50%] 91,426 or March. ‘ ' 1' Collection of January credit sales [160% K $277,200) X J %] 59:05 Total collections $323,491 & — S 28413 Payment of March credit purchases 11365 Payment of February credit purchases 14553 Total payments S 54331 March cash purchases [50% X 856,826) $18,413 Payment of March credit purchases [(50% >< $56326) X 411%] 11,365 Paurneutof February credr't purchases [(51% X $43510) X 611%] 14:553 Total payments $51331 ...
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This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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chapter 20 - AEZD-S ;, CPAs, are preparing their service...

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