Fall 2010 Test IV-2 (2) - d. Prepare Budgeted Income...

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Acct 2302 Dr. Chambers Test IV Fall 2010 1. Weltin Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $390,000 for November, $370,000 for December, and $380,000 for January. Collections are expected to be 90% in the month of sale, 5% in the month following the sale, and 5% uncollectible. The cost of goods sold is 60% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,800. Monthly depreciation is $18,000. Ignore taxes. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. c. Prepare Cash Budgets for November and December.
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Unformatted text preview: d. Prepare Budgeted Income Statements for November and December. e. Prepare a Budgeted Balance Sheet for the end of December. 2. Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: Required: From the foregoing information, compute the following variances. Show whether the variance is favorable (F) or unfavorable (U): a. Materials price variance. b. Materials quantity variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead rate variance. f. Variable overhead efficiency variance. 3. Gramling Clinic bases its budgets on patient-visits. During July, the clinic plans for a level of activity of 2,500 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's planning budget for July....
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This note was uploaded on 03/27/2012 for the course ACCT 2302 taught by Professor Shall during the Spring '08 term at Texas A&M University, Corpus Christi.

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Fall 2010 Test IV-2 (2) - d. Prepare Budgeted Income...

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