Homework_Answers_ch_10_11

Homework_Answers_ch_10_11 - E10-5. Locksafe Company Sales...

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E10-5. Locksafe Company Sales Budget For the Year Ending December 31, 2007 First Second Third Fourth Quarter Quarter Quarter Quarter Year Sales for 2006 in units 21,000 26,000 25,000 30,000 102,000 Projected sales at 130% of prior year 27,300 33,800 32,500 39,000 132,600 Sales price per unit $ 20 $ 20 $ 20 $ 20 $ 20 Budgeted revenue for 2007 $546,000 $676,000 $650,000 $780,000 $2,652,000 E10-6. Sunny M Production Budget January February March Quarter Unit sales 15,600 16,500 16,000 48,100 Plus desired ending inventory of finished units 1,650 1,600 1,850 * 1,850 Total needed 17,250 18,100 17,850 49,950 Less beginning inventory of finished units 1,600 1,650 1,600 1,600 Units to be produced 15,650 16,450 16,250 48,350 *Equals 10% of April sales of 18,500 units.
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Chapter 10 Budgetary Planning and Control E10-7. Ajax Chemical Company Direct Materials Purchases Budget For the Year Ending December 31, 2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced 46,000 42,000 50,000 39,000 177,000 Cost of raw material per unit (4 × $4) $ 16 $ 16 $ 16 $ 16 $ 16 Cost of raw material needed for production $736,000 $672,000 $800,000 $624,000 $2,832,000 Add desired ending inventory of raw material a 201,600 240,000 187,200 230,400 230,400 Total material needed 937,600 912,000 987,200 854,400 3,062,400 Less beginning inventory of raw material 180,000 201,600 240,000 187,200 180,000 Required raw material purchases $757,600 $710,400 $747,200 $667,200 $2,882,400 a Equals 30% of next quarter’s material requirements. E10-10. January February March Collection of credit sales Collection of December sales $20,000 Collection of January sales 48,000 Collection of January sales $12,000 Collection of February sales 64,000 Collection of February sales $16,000 Collection of March sales 72,000 10-2
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Chapter 10 Budgetary Planning and Control $68,000 $76,000 $88,000 10-3
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Chapter 10 Budgetary Planning and Control P10-1. a. Sales $525,000 5% increase over prior quarter Less variable cost of sales 315,000 5% increase over prior quarter Contribution margin 210,000 Less fixed production costs $101,840 $8,000 + 1.02 ($100,000 - $8,000) Less fixed selling and administrative expenses 50,860 152,700 $7,000 + 1.02 ($50,000 - $7,000) Income before taxes 57,300 Less taxes on income 22,920 40% of income before taxes Net income $ 34,380 b. Cash collected from sales: (.5 x $500,00 + .5 x $525,000) $512,500 Cash payments: Payment of material (.4 x $300,000 x .4) + (.4 x $315,000 x .6) $123,600 Payment for labor (.4 x $315,000) 126,000 Payment for variable overhead (.2 x $315,000) 63,000 Payment for fixed production costs ($101,840 - $8,000) 93,840 Payment for fixed sell. and adm. expense ($50,860 - $7,000) 43,860 Payment of income taxes 22,920 473,220 $ 39,280 Plus beginning cash balance 150,000 Ending cash balance $189,280 10-4
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Chapter 10 Budgetary Planning and Control c. Assets:
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This note was uploaded on 04/07/2008 for the course ACCOUNTING 2 taught by Professor Greenburg during the Spring '07 term at Temple.

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Homework_Answers_ch_10_11 - E10-5. Locksafe Company Sales...

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