ACCOUNTING
In Class Assignment 1.pdf

Production budget in units c direct material usage

Info icon This preview shows pages 2–3. Sign up to view the full content.

Production budget in units c. Direct material usage budget and direct material purchases budget in both units and dollars; round to dollars d. Direct manufacturing labour cost budget e. Manufacturing overhead cost budgets for setup, processing, and inspection activities f. Budgeted unit cost of ending finished-goods inventory and ending inventories budget g. Cost of goods sold budget h. Marketing and general administration and shipping costs budget 2. SJSN Inc. ’s balance sheet for May 31 follows. SJSN Inc. Balance Sheet as of May 31 Assets Cash $ 9,435 Accounts receivable $324,000 Less: Allowance for bad debts 16,200 307,800 Inventories Direct materials 9,279 Finished goods 115,875 Fixed assets $870,000 Less: Accumulated depreciation 36,335 733,665 Total assets $1,176,054 Liabilities and Equity Accounts payable $ 15,600 Taxes payable 10,800 Interest payable 750
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

2510 In class Assignment 1 Long-term debt 150,000 Common stock 300,000 Retained earnings 698,904 Total liabilities and equity $1,176,054 Use the balance sheet and the following information to prepare a cash budget for SJSN Inc. for June. Round to dollars. All sales are on account; 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts. All purchases of materials are on account. SJSN Inc. pays for 80% of purchases in the month of purchase and 20% in the following month. All other costs are paid in the month incurred, including the declaration and payment of a $15,000 cash dividend in June. SJSN Inc. is making monthly interest payments of 0.5% (6% per year) on a $150,000 long-term loan. SJSN Inc. plans to pay the $10,800 of taxes owed as of May 31 in the month of June. Income tax expense for June is zero. 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation. 3. Prepare a budgeted income statement for June and a budgeted balance sheet for SJSN Inc. as of June 30, 2018.
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern