Diesel Information Continued (direct labor budget/overhead budget/selling and administrative expense budget/cash budget include a schedule of...

Diesel Information Continued (direct labor budget/overhead budget/selling and administrative expense budget/cash budget include a schedule of cash collections and payments/finished goods inventory calculator)

	4th	1st	2nd	3rd	4th
Ending Finished Goods Inventory	Quarter	Quarter	Quarter	Quarter	Quarter
in units	0	15,000	19,000	20,000	15,000

Raw Materials Inventory
Beginning Inventory 1/1/2018	28,436	units
Planned Ending Inventory	26,000	units
Policy	25%	of next quarters' needs for production is in ending Raw Materials Inventory

Work In Process Inventory
Beginning Inventory 1/1/2018	$ 2,850
Planned Ending Inventory	$ 2,850

Payment for Raw Materials
Payment Policy	85%	quarter of purchase
	15%	quarter following purchase

Wages and Salaries Payment
Payment Policy	2	times monthly on the 15th and 30th
		Fully paid each month

Variable Selling & Administrative Exp.	3.50%	of selling price

Fixed Selling & Administrative Exp
Depreciation	$55,000	per quarter
Other Selling & Administrative Exp	$180,000	per quarter


Equipment Purchases	$5,450,000	end of 4th quarter


Dividends to be Declared	$400,000	per quarter

Minimum Cash Balance	$250,000	Required at end of every quarter

Interest Rate for Investing (short-term)	4.00%	Annually
Interest Policy	All	of the ending cash balance for the quarter earns interest for the entire quarter
	All	of the ending cash balance for the quarter remains in Cash at the beginning of the next quarter

Interest Rate for borrowing	12%	Annually
Interest Policy	$10,000	increments are used in borrowing and repayment, maintaining the minimum cash balance
		Borrowing occurs at the beginning of the quarter.
		Repayments occur at the end of the quarter.


Actual Units Produced
First Quarter	43,000	units	(use for Flexible Budget Tab only)

Flexible Budget - Analyze at 2 Production Levels
Production level 1	45,000	units
Production level 2	40,000	units

	Diesel Dynamo Company
	Balance Sheet
	12/31/2017
ASSETS
Cash	$ 6,150,000
Inventory	$ 3,748,000
Accounts Receivable (net)	$ 5,050,000
Plant and Equipment	$ 29,400,000
	$ 44,348,000

LIABILITIES AND EQUITY
Accounts Payable	$ 8,100,000
Common Stock	$ 26,234,500
Retained Earnings	$ 10,013,500
	$ 44,348,000

Expert Solution

ekkarill92 answered 2 years ago

Prepare a sales, production, direct materials, direct labor, overhead, and selling & administrative expense budget by...

Prepare a sales, production, direct materials, direct labor, overhead, and selling & administrative expense budget by quarter for the year 2020 for the Budgets R Us Co. using the following assumptions: Sales quantity by quarter: 10,000, 11,000, 12,000, 13,000, 14,000, 15,000. Selling price per unit = $20. Ending FG inventory = 10%. RM pounds per unit = 4. Ending RM inventory = 20%. RM price per pound = $2 Direct labor hours per unit = 2 Direct labor hourly rate...

Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary...

Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses $0 $0 $0 Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 [The following information applies to the questions displayed below.] Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company...

Which of the following statements is false with respect to the selling and administrative expense budget?...

Which of the following statements is false with respect to the selling and administrative expense budget? Multiple Choice It includes depreciation expense even though it is not a cash flow. It estimates the cash disbursements for selling and administrative expenses that appear in the cash budget. It includes estimated variable and fixed selling and administrative expenses. It impacts the budgeted cost of goods sold reported on the income statement.

The selling and administrative expense budget of Fenley Corporation is based on the number of units...

The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. The variable selling and administrative expense is $4.40 per unit. The budgeted fixed selling and administrative expense is $35,750 per month, which includes depreciation of $4,000. The remainder of the fixed selling and administrative expense represents current cash flows. Required: Prepare the selling and administrative expense budget for January. (Give the proper answer with...

irkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget....

irkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24....

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor...

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,600 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,100 per month, which includes depreciation of $3,660. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $61,300 $18,200 $57,640...

Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget...

Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 per month. The remainder of the fixed selling and administrative expense represents current cash flows.Calculate the budgeted cash disbursements for selling and administrative expenses for December. Give your...

Prepare GradyGrady's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round...

Prepare GradyGrady's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. Grady, Inc. manufactures model airplane kits and projects production at 650, 500, 450, and 600 kits for the next four quarters. First Quarter Second Quarter Third Quarter Fourth Quarter Total Direct materials (ounces) per kit Direct...

True OR False 1- The selling and administrative budget is typically prepared before the cash budget.( ...

True OR False 1- The selling and administrative budget is typically prepared before the cash budget.( ) 2-The cash budget is the starting point in preparing the master budget.( ) 3-Control involves developing goals and preparing various budgets to achieve those goals.( ) 4-The budgeted income statement is typically prepared before the budgeted balance sheet. ( ) 5- In the merchandise purchases budget, the required purchases (in units) for a period can be determined by subtracting the beginning merchandise inventory...

Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense...

Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2008, the following data are developed: Sales: 20,000 units Unit selling price: RM35 Variable costs per RM of sales: Sales commissions 6% Delivery expense 2% Advertising 4% Fixed costs per quarter: Sales salaries RM24,000 Office salaries 17,000 Depreciation 6,000 Insurance 2,000 Utilities 1,000 Prepare a selling and administrative...

Question