Explanations for each balance are as follows

Explanations for each balance are as follows - Cash:...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Explanations for each balance are as follows:  Cash:  Ending balance per the cash budget.  Accounts receivable:  30% of fourth quarter sales ($600,000 × 30%).  Finished goods inventory:  2,475 units (15% of next quarter's sales of 16,500) times  $11.25 per unit cost. See production budget and cost of goods sold calculation for further  information.  Raw materials inventory:  Materials for 1,683 units (10% of next quarter's production  of 16,830 units) times $1.40 per unit cost of materials. See direct materials budget and cash  budget for units and costs.  Land : Sale of land with a cost of $15,000 (per cash budget information) deducted  from beginning balance of $45,000.  Building:  No activity during the year.  Equipment:  Beginning balance of $60,000 plus purchases totaling $76,000.  Accumulated depreciation:  Beginning balance of $50,000 plus $15,200 additional 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online