In: Accounting
I ONLY need parts 5-8 answered please. Thank you!
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2019 and reports a balance sheet at December 31, 2018 as follows:
Endless Mountain Company | ||||||
Balance Sheet | ||||||
December 31, 2018 | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 46,200 | ||||
Accounts receivable (net) | 260,000 | |||||
Raw materials inventory (4,500 yards) | 11,250 | |||||
Finished goods inventory (1,500 units) | 32,250 | |||||
Total current assets | $ | 349,700 | ||||
Plant and equipment: | ||||||
Buildings and equipment | 900,000 | |||||
Accumulated depreciation | (292,000 | ) | ||||
Plant and equipment, net | 608,000 | |||||
Total assets | $ | 957,700 | ||||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 158,000 | ||||
Stockholders’ equity: | ||||||
Common stock | $ | 419,800 | ||||
Retained earnings | 379,900 | |||||
Total stockholders’ equity | 799,700 | |||||
Total liabilities and stockholders’ equity | $ | 957,700 | ||||
The company’s chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2019 budget:
Required:
The company’s CFO has asked you to prepare the 2019 master budget. To fulfill this request, prepare the following budget schedules and financial statements.
1. Quarterly sales budget including a schedule of expected cash collections.
2. Quarterly production budget.
3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials.
4. Quarterly direct labor budget.
5. Quarterly manufacturing overhead budget.
6. Ending finished goods inventory budget at December 31, 2019.
7. Quarterly selling and administrative expense budget.
8. Quarterly cash budget.
9. Income statement for the year ended December 31, 2019.
10. Balance sheet at December 31, 2019.
Required:
1. Calculate the following budgeted figures for 2019:
a. The total fixed cost.
b. The variable cost per unit sold.
c. The contribution margin per unit sold.
d. The break-even point in unit sales and dollar sales.
e. The margin of safety.
f. The degree of operating leverage
2. Prepare a budgeted variable costing income statement for 2019. Stop your computations at net operating income.
Manufacturing Overhead Budget | |||||
Q1 | Q2 | Q3 | Q4 | Year | |
Budgdted direct labor hr | 4,012.5 | 8,425.0 | 4,125.0 | 5,800.0 | 22,362.5 |
V. Factory OH rate | 3 | 3 | 3 | 3 | 3 |
Variable manufacturing OH | 12,037.50 | 25,275.00 | 12,375.00 | 17,400.00 | 67,087.50 |
Fixed manufacturing OH | 150,000 | 150,000 | 150,000 | 150,000 | 600,000 |
Total manufacturing OH | 162,037.50 | 175,275.00 | 162,375.00 | 167,400.00 | 667,087.50 |
Less: Depreciation | 20,000 | 20,000 | 20,000 | 20,000 | 80,000 |
Cash Disbursement for MOH | 142,037.50 | 155,275.00 | 142,375.00 | 147,400.00 | 587,087.50 |
Total Manufacturing OH | 667,088 | ||||
Budgdted Direct labor hr | 22,362.50 | ||||
Predetermined OH Rate | 29.83 | ||||
Manufacturing Overhead Budget | |||||
Item | Quantity | Cost | Total | ||
Production Cost per Unit: | |||||
Direct Material | 3.5 | yards | 3 | per yard | 10.50 |
Direct Labor | 0.25 | Hours | 18 | per hr | 4.50 |
Manufacturing OH | 0.25 | Hours | 29.83 | per hr | 7.46 |
Unit Product Cost | 22.46 | ||||
Budgdted Finished Goods Inventory: | |||||
Units from prior year's production | 1500 | ||||
Unit product Cost | 21.50 | ||||
Cost from prior year production | 32,250.00 | ||||
Units from current year productions | 450 | ||||
Unit product Cost | 22.46 | ||||
Cost from current year production | 10,107 | ||||
Cost of Ending finished goods inventory | 42,357.00 | ||||
Selling Expense Budget | |||||
Q1 | Q2 | Q3 | Q4 | Year | |
Budgdted Unit Sales | 12,000 | 37,000 | 15,000 | 25,000 | 89,000 |
Variable selling and admin exp per unit | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
Total variable selling expnse | 15,000 | 46,250 | 18,750 | 31,250 | 111,250 |
Fixed selling and admin expense | |||||
Advertisement | 25000 | 25,000 | 25,000 | 25,000 | 100,000 |
Executive Salaries | 64000 | 64,000 | 64,000 | 64,000 | 256,000 |
Insurance | 12000 | 12,000 | 12,000 | 12,000 | 48,000 |
Property TAXES | 8000 | 8,000 | 8,000 | 8,000 | 32,000 |
Depreciation Expense | 8000 | 8,000 | 8,000 | 8,000 | 32,000 |
Total fixed selling and admin exp | 117,000 | 117,000 | 117,000 | 117,000 | 468,000 |
Total selling and admin expnese | 132,000 | 163,250 | 135,750 | 148,250 | 579,250 |
Less: Depreciation | 8,000 | 8,000 | 8,000 | 8,000 | 32,000 |
Total Budgdted selling expense | 124,000 | 155,250 | 127,750 | 140,250 | 547,250 |
Cash Budget | |||||
Q1 | Q2 | Q3 | Q4 | Year | |
Cash balance, beginning | 46,200 | 30,000 | 244,649 | 314,337 | 46,200 |
Cash receipt from customer | 548,000 | 984,000 | 656,000 | 720,000 | 2,908,000 |
Total cash available | 594,200 | 1,014,000 | 900,649 | 1,034,337 | 2,954,200 |
Less: Cash Payments for | |||||
Direct Material | 291,287 | 292,176 | 226,937 | 218,054 | 1,028,453 |
Related SolutionsI ONLY need requirements 1c-1f and 2 please. Thank you! Endless Mountain Company manufactures a single...I ONLY need requirements 1c-1f and 2 please. Thank
you!
Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2019 and reports a balance sheet at December 31, 2018 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2018
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2021
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2021
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2019 and reports a balance sheet at December 31, 2018 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2018
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2021
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2021
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2017 and reports a balance sheet at December 31, 2016 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2016
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500
yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2017 and reports a balance sheet at December 31, 2016, as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2016
Assets
Current assets:
Cash
$
46,200
Accounts receivable
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500 units)...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2017 and reports a balance sheet at December 31, 2016 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2016
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500
yards)
11,250
Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2017 and reports a balance sheet at December 31, 2016 as
follows:
Endless Mountain Company
Balance Sheet
December 31, 2016
Assets
Current assets:
Cash
$
46,200
Accounts receivable (net)
260,000
Raw materials inventory (4,500 yards)
11,250
Finished goods inventory (1,500...
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