AC202 Week 7 Homework Answers

AC202 Week 7 Homework Answers - Problem 23-5A (130 minutes)...

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Problem 23-5A (130 minutes) Part 1 NYGAARD SPORTS CO. Sales Budgets January, February, and March 2010 Budgeted Units Budgeted Unit Price Budgeted Total Dollars January 2010. ................................................ 7,500 $53 $ 397,500 February 2010. .............................................. 9,250 53 490,250 March 2010. ................................................... 10,750 53 569,750 Total for the first quarter. ............................. 27,500 $1,457,500 Part 2 NYGAARD SPORTS CO. Merchandise Purchases Budgets January, February, and March 2010 January February March Total Next month’s budgeted sales. ........... 9,250 10,750 10,500 Ratio of inventory to future sales. ..... x 20% x 20% x 20% Budgeted ending inventory. .............. 1,850 2,150 2,100 Add budgeted sales. ........................... 7,500 9,250 10,750 Required available merchandise. ...... 9,350 11,400 12,850 Deduct beginning inventory. .............. (4,750 ) (1,850 ) (2,150 ) Units to be purchased. ....................... 4,600 9,550 10,700 24,850 Budgeted cost per unit. ...................... $ 30 $ 30 $ 30 $ 30 Budgeted merchandise purchases. ... $138,000 $286,500 $321,000 $745,500 Part 3 NYGAARD SPORTS CO. Selling Expense Budgets January, February, and March 2010 January February March Total Budgeted sales. ............................ $397,500 $490,250 $569,750 Sales commission percent. ......... x 20% x 20% x 20% Sales commissions expense. ...... 79,500 98,050 113,950 $291,500 Sales salaries. ............................... 6,000 6,000 6,000 18,000 Total selling expenses. ................ $ 85,500 $104,050 $119,950 $309,500
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Problem 23-5A (Continued) Part 4 NYGAARD SPORTS CO. General and Administrative Expense Budgets January, February, and March 2010 January February March Total Salaries. ........................................... $13,000 $13,000 $13,000 $39,000 Maintenance. ................................... 2,100 2,100 2,100 6,300 Depreciation*. .................................. 6,000 7,000 7,300 20,300 Total expenses. ............................... $21,100 $22,100 $22,400 $65,600 * Depreciation expense calculations: straight-line method, 8-year useful life, no salvage; $36,000 purchased in January, $96,000 purchased in February, $28,800 in March Annual Deprec. Amount January February March Total Equipment owned on 12/31/2009. ..................... $67,500 $5,625 $5,625 $5,625 $16,875 Purchased in January. ......... 4,500 375 375 375 1,125 Purchased in February. ....... 12,000 1,000 1,000 2,000 Purchased in March. ............ 3,600 ______ ______ 300 300 Totals. .................................... $6,000 $7,000 $7,300 $20,300 Part 5 NYGAARD SPORTS CO. Capital Expenditures Budgets January, February, and March 2010 January February March Equipment purchases. ................................ $36,000 $96,000 $ 28,800 Land purchase. ............................................ ______ ______ 155,000 Total. ............................................................ $36,000 $96,000 $183,800
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This note was uploaded on 11/11/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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AC202 Week 7 Homework Answers - Problem 23-5A (130 minutes)...

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