Question

1. For 2018, X Company estimated production of 3,000 units of finished product and direct material cost of $20,550. Actual production in 2018 was 2,800 units of finished product, and actual direct material cost was $14,520.

What was the direct material static budget for 2018?

2. At the start of 2018, X Company developed the following budgeted total cost function: $8.53X + $229,700, where X is number of units produced. Budgeted production for the year was 10,800 units.

Actual total costs and actual production in 2018 were different than the budgeted amounts. The actual total cost function turned out to be $9.03X + $206,930, and actual production was 12,000 units.

What was the 2018 flexible budget variance for total fixed cost [a positive number means a favorable variance and a negative number means an unfavorable variance]?

What was the 2018 flexible budget variance for total variable costs [a positive number means a favorable variance and a negative number means an unfavorable variance]?

3. X Company started business on June 1 and prepares monthly financial statements. The following were June transactions:

1. received $44,000 from a group of investors
2. bought $8,386 of merchandise, $3,270 for cash and $5,116 on account
3. sales were $41,900, of which $37,675 were for cash and $4,225 were on account; Cost of Goods Sold was $24,302
4. paid $3,543 to suppliers for merchandise previously bought on account
5. collected $2,888 from customers on account
6. paid expenses totalling $8,506

What were total assets on June 30?

What was Net Income in June?

4.

X Company prepares monthly financial statements. The following is the company's July 1 Balance Sheet:

Balance Sheet

July 1

Assets		Equities
Cash	$36,981	Accounts Payable	$5,105
Accounts Receivable	5,870	Notes Payable	20,360
Inventory	14,410
Prepayments	3,283	Paid-In Capital	63,480
Equipment	66,260	Retained Earnings	37,859
Total Assets	$126,804	Total Equities	$126,804

The following were the company's July transactions:

1. borrowed $25,000 from a bank
2. bought equipment costing $9,800, paying the manufacturer $5,400 in cash and signing a note for $4,400
3. purchased a $6,000, five-year insurance policy, paying for two years in advance

What was the balance in the Cash account on July 31 [ignore adjusting entries]?

What were total assets on July 31 [ignore adjusting entries]?

5. X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31:

1. On October 1, the company paid rent for the final three months of the year. Rent was $1,275 per month.
2. On October 1, the company purchased equipment that cost $10,000, borrowing the full amount from a bank. The equipment has a life of three years and a salvage value at that time of $1,000. The company will repay the loan on December 31, along with interest at $104 per month.

What was the effect of the accountant's entries on total assets?

What was the effect of the accountant's entries on Net Income in October?

Answer 1

Kindly note that as per the policy, we can answer the first four questions.