The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use. The truck has an anticipated life of 100,000 miles or 4 years. The estimated residual value at the end of the assets service life is expected to be $2,000. For assets of this type, the company utilizes the straight-line depreciation method.
|
Date |
Account Name |
Debit |
Credit |
|
Period Ended |
Depreciation Expense |
Accumulated Depreciation |
End of Period Book Value |
|
December 31, 2025 |
|||
|
December 31, 2026 |
|||
|
December 31, 2027 |
|||
|
December 31, 2028 |
|
Date |
Account Name |
Debit |
Credit |
|
Date |
Account Name |
Debit |
Credit |
|
Year |
Miles Driven |
|
2025 |
27,000 |
|
2026 |
24,000 |
|
2027 |
32,000 |
|
2028 |
22,000 |
|
Period Ended |
Depreciation Expense |
Accumulated Depreciation |
End of Period Book Value |
|
December 31, 2025 |
|||
|
December 31, 2026 |
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|
December 31, 2027 |
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|
December 31, 2028 |
In: Accounting
Margaret Rosenthal, accountant for Russell Manufacturing Company, prepared the following income statement for the quarter ending December 31, 2019.
| Sales | $ | 1,384,100 | |
| Purchases of materials (1) | 247,290 | ||
| Payroll (2) | 267,100 | ||
| Advertising | 37,300 | ||
| Administrative travel | 27,900 | ||
| Manufacturing utilities | 50,000 | ||
| Facility rental (3) | 93,000 | ||
| Depreciation (4) | 64,100 | ||
| Sales commissions | 44,000 | ||
| Annual insurance (manufacturing) | 43,000 | ||
| Office utilities | 22,700 | ||
| Management salaries (5) | 391,000 | ||
| Net income | $ | 96,710 | |
Notes:
(1) 90% of the materials were direct
(2) 80% direct labour; 20% indirect labour
(3) 80% related to manufacturing
(4) 80% related to manufacturing
(5) 30% related to manufacturing
Furthermore, Rosenthal compiled the following information with
respect to inventories for the quarter (note that the company does
not maintain inventories of indirect materials).
| Beginning | Ending | |||||
| Direct materials | $ | 7,020 | $ | 8,100 | ||
| Work in process | 8,220 | 9,360 | ||||
| Finished goods | 11,430 | 7,510 | ||||
Required:
1. This part of the question is not part of your
Connect assignment.
2. Prepare a cost of goods manufactured statement
for the quarter.
3. Prepare a revised income statement for the
quarter.
In: Accounting
Production Budget
Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows:
| S12L7 | S12L5 | |
| First quarter, 20X1 | 800 | 1,300 |
| Second quarter, 20X1 | 2,200 | 1,400 |
| Third quarter, 20X1 | 5,600 | 5,300 |
| Fourth quarter, 20X1 | 4,600 | 3,900 |
| First quarter, 20X2 | 900 | 1,200 |
The vice president of sales believes that the projected sales are realistic and can be achieved by the company.
Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 20X1 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12L5 in ending inventory.
Required:
Prepare a production budget for each quarter for 20X1 and for the year in total. Enter amounts as positive numbers.
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | year | ||
| sales | ||||||
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| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | year | ||
| sales | ||||||
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In: Accounting
The president of Crown Construction was informed that the first quarter financial statements would be available "as soon as the adjusting entries are made." Being a non-accountant, the president feels adjustments should not be necessary if the accounting department is operating in a competent manner. Does the need for adjusting entries at the end of the quarter imply that transactions are not being recorded properly? Explain.
In: Accounting
According to sales information in the first quarter of 2019, 11% of the new vehicles sold in the United States were hybrids. Let’s assume these statistics remain the same for 2020. That is, 11 percent of the new car sales are hybrids in the first quarter of 2020. For a sample of 52 vehicles sold in the Richmond, Virginia area, what is the probability that:
More than 6 were hybrids? (Round your z-score computation to 2 decimal places and final answer to 4 decimal places.)
At least 6 were hybrids? (Round your z-score computation to 2 decimal places and final answer to 4 decimal places.)
Exactly 6 were hybrids? (Round your z-score computation to 2 decimal places and final answer to 4 decimal places.)
In: Statistics and Probability
Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations:
Current Assets as of December 31 (prior year):
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . .$4,460
Accounts receivable, net. . . . . . . . . . . $48,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . .$15,000
Property, plant, and equipment, net. . . . . . . . . . . . . $121,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . .$43,000
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$127,000
Retained earnings. . . . . . . . . . . . . . . . . . . . . . .$22,500
Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.
|
Dalton Manufacturing |
|||||
|
Cash Collections Budget |
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|
For the Quarter Ended March 31 |
|||||
|
Month |
|||||
|
January |
February |
March |
Quarter |
|
|
Cash sales |
||||
|
Credits sales |
||||
|
Total cash collections |
Addititonal Data:
| Actual sales in December were
$ 76 comma 000$76,000. Selling price per unit is projected to remain stable at$ 9$9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:
|
||||||||||
|
b. |
Sales are
3030% cash and7070% credit. All credit sales are collected in the month following the sale. |
|||||||||
|
c. |
DaltonDalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be1010% of the following month's sales (in units). |
|||||||||
|
d. |
Of each month's direct material purchases,
2020% are paid for in the month of purchase, while the remainder is paid for in the month following purchase.TwoTwo pounds of direct material is needed per unit at$ 1.50$1.50 per pound. Ending inventory of direct materials should be20 %20% of next month's production needs. |
|||||||||
|
e. |
Most of the labor at the manufacturing facility is indirect,
but there is some direct labor incurred. The direct labor hours per
unit is
0.030.03. The direct labor rate per hour is$ 13$13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows:
|
|||||||||
|
f. |
Monthly manufacturing overhead costs are
$ 6 comma 500$6,500 for factory rent,$ 2 comma 900$2,900 for other fixed manufacturing expenses, and$ 1.40$1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. |
|||||||||
|
g. |
Computer equipment for the administrative offices will be
purchased in the upcoming quarter. In January,
DaltonDalton Manufacturing will purchase equipment for$ 5 comma 800$5,800 (cash), while February's cash expenditure will be$ 11 comma 600$11,600 and March's cash expenditure will be$ 15 comma 800.$15,800. |
|||||||||
|
h. |
Operating expenses are budgeted to be
$ 1.20$1.20 per unit sold plus fixed operating expenses of$ 1 comma 400$1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. |
|||||||||
|
i. |
Depreciation on the building and equipment for the general and
administrative offices is budgeted to be
$ 4 comma 700$4,700 for the entire quarter, which includes depreciation on new acquisitions. |
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|
j. |
DaltonDalton Manufacturing has a policy that the ending cash balance in each month must be at least$ 4 comma 400$4,400. It has a line of credit with a local bank. The company can borrow in increments of$ 1 comma 000$1,000 at the beginning of each month, up to a total outstanding loan balance of$ 140 comma 000$140,000. The interest rate on these loans is11% per month simple interest (not compounded). The company would pay down on the line of credit balancein increments of$ 1 comma 000$1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. |
|||||||||
|
k. |
The company's income tax rate is projected to be 30% of
operating income less interest expense. The company pays
$ 10 comma 800$10,800 cash at the end of February in estimated taxes. |
In: Accounting
The Primo Company had a total payroll of $240,605.13 for the first quarter of the current year. It withheld $28,131.67 from the employees for federal income tax during this quarter. The company made the following deposits in a qualified bank depository for the amount of the income and Social Security and Medicare taxes withheld from the employees and for the company's contribution to the FICA tax: $19,450 on February 6; $19,450 on March 4; and $19,450 on April 5. Primo Company's bookkeeper is now filling out Form 941 (quarterly return), which is due by the end of April. Complete the following to determine the amount of the check that the company must send to the IRS for the undeposited taxes due. Round your answers to the nearest cent.
A. total SS and mdicare to be paid for quarter
B. Total Taxes
C. Total Deposits
D. Undeposited Taxes due IRS
In: Accounting
Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations:
Current Assets as of December 31 (prior year):
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$4,460
Accounts receivable, net. . . . . . . . . . . . .
$46,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,300
Property, plant, and equipment, net. . . . . . . . . . .
$123,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . .
$43,000
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$123,500
Retained earnings. . . . . . . . . . . . . . . . . . . . . . .
$23,200
|
a. |
Actual sales in December were $76,000. Selling price per unit
is projected to remain stable at $9 per unit throughout the budget
period. Sales for the first five months of the upcoming year are
budgeted to be as follows:
|
||||||||||
|
b. |
Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. | ||||||||||
|
c. |
Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). |
||||||||||
|
d. |
Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase.Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. | ||||||||||
|
e. |
Most of the labor at the manufacturing facility is indirect,
but there is some direct labor incurred. The direct labor hours per
unit is 0.03. The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows:
|
||||||||||
|
f. |
Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. | ||||||||||
|
g. |
Computer equipment for the administrative offices will be
purchased in the upcoming quarter. In January, Dalton
Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800. |
||||||||||
|
h. |
Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. | ||||||||||
|
i. |
Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,600 for the entire quarter, which includes depreciation on new acquisitions. | ||||||||||
|
j. |
Dalton Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. |
||||||||||
|
k. |
The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800cash at the end of February in estimated taxes. |
Requirements:
|
1. |
Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. |
|
2. |
Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.) |
|
3. |
Prepare a direct materials budget. |
|
4. |
Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) |
|
5. |
Prepare a cash payments budget for direct labor. |
|
6. |
Prepare a cash payments budget for manufacturing overhead costs. |
|
7. |
Prepare a cash payments budget for operating expenses. |
|
8. |
Prepare a combined cash budget. |
|
9. |
Calculate the budgeted manufacturing cost per unit (assume
that fixed manufacturing overhead is budgeted to be
$0.90 per unit for the year). |
|
10. |
Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing one unit x Number of units sold.) |
In: Accounting
Jesper Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Jesper Manufacturing's operations:
| Current Assets of December 31 (prior year): |
| Cash $4,460 |
| Accounts receivable, net $52,000 |
| Inventory $15,400 |
| Property, plant and equipment, net $122,000 |
| Accounts payable $44,000 |
| Common stock $126,860 |
| Retained earning $23,000 |
a. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:
| January | $80,100 |
| February | $89,100 |
| March | $82,800 |
| April | $85,500 |
| May | 77,400 |
b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale.
c. Jesper Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units).
d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $1.40/kg. Ending inventory of direct materials should be 20% of next month's production needs.
e. Monthly manufacturing conversion costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred.
f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Jesper Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800.
g. Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred.
h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,600 for the entire quarter, which includes depreciation on new acquisitions.
i. Jesper Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 1% per month simple interest (not compounded). Jesper Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter.
j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes.
Requirements:
1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.
2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)
3. Prepare a direct materials budget.
4. Prepare a cash payments budget for the direct material purchases from Requirement 3.
5. Prepare a cash payments budget for conversion costs. 6. Prepare a cash payments budget for operating expenses.
7. Prepare a combined cash budget.
8. Calculate the budgeted manufacturing cost per unit. (Assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year.)
9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.)
10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable.
NOTE: Only need requirements 1,2,3,8,9,10.
In: Accounting
Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations:
Current Assets as of December 31 (prior year):
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . .$4,460
Accounts receivable, net. . . . . . . . . . . $48,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . .$15,000
Property, plant, and equipment, net. . . . . . . . . . . . . $121,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . .$43,000
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$127,000
Retained earnings. . . . . . . . . . . . . . . . . . . . . . .$22,500
Requirement 1. Prepare a schedule of cash collections forJanuary, February, and March, and for the quarter in total.
|
Dalton Manufacturing |
|||||
|
Cash Collections Budget |
|||||
|
For the Quarter Ended March 31 |
|||||
|
Month |
|||||
|
January |
February |
March |
Quarter |
|
|
Cash sales |
$24,030 |
$26,730 |
$24,840 |
$75,600 |
|
Credits sales |
53,200 |
56,070 |
62,370 |
171,640 |
|
Total cash collections |
$77,230 |
$82,800 |
$87,210 |
$247,240 |
Requirement 2. Prepare a production budget. (Hint: Unit sales= Sales in dollars / Selling price per unit.)
|
Dalton Manufacturing |
||||||
|
Production Budget |
||||||
|
For the Quarter Ended March 31 |
||||||
|
Month |
||||||
|
January |
February |
March |
Quarter |
|
|
Unit sales |
8,900 |
9,900 |
9,200 |
28,000 |
|
Plus: Desired ending inventory |
990 |
920 |
950 |
950 |
|
Total needed |
9,890 |
10,820 |
10,150 |
28,950 |
|
Less: Beginning inventory |
890 |
990 |
920 |
890 |
|
Units to produce |
9,000 |
9,830 |
9,230 |
28,060 |
Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.)
|
Dalton Manufacturing |
|||||
|
Direct Materials Budget |
|||||
|
For the Quarter Ended March 31 |
|||||
|
Month |
|||||
|
January |
February |
March |
Quarter |
|
|
Units to be produced |
9,000 |
9,830 |
9,230 |
28,060 |
|
Multiply by: Quantity (pounds) of DM needed per unit |
2 |
2 |
2 |
2 |
|
Quantity (pounds) needed for production |
18,000 |
19,660 |
18,460 |
56,120 |
|
Plus: Desired ending inventory of DM |
3,932 |
3,692 |
3,764 |
3,764 |
|
Total quantity (pounds) needed |
21,932 |
23,352 |
22,224 |
59,884 |
|
Less: Beginning inventory of DM |
3,600 |
3,932 |
3,692 |
3,600 |
|
Quantity (pounds) to purchase |
18,332 |
19,420 |
18,532 |
56,284 |
|
Multiply by: Cost per pound |
$1.50 |
$1.50 |
$1.50 |
$1.50 |
|
Total cost of DM purchases |
$27,498 |
$29,130 |
$27,798 |
$84,426 |
Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) (Round your answers to the nearest whole dollar.)
|
Dalton Manufacturing |
||||||
|
Cash Payments for Direct Materials Budget |
||||||
|
For the Quarter Ended March 31 |
||||||
|
Month |
||||||
|
January |
February |
March |
Quarter |
|
|
20% of current month DM purchases |
||||
|
80% of last month's DM purchases |
||||
|
Total cash payments |
Addititonal Data:
| Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:
|
||||||||||
|
b. |
Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. | |||||||||
|
c. |
Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the followingmonth's sales (in units). |
|||||||||
|
d. |
Of each month's direct material purchases, 20% are paid for
in the month of purchase, while the remainder is paid for in the
month following purchase.Two pounds of direct material is needed
per unit at $ 1.50$1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. |
|||||||||
|
e. |
Most of the labor at the manufacturing facility is indirect,
but there is some direct labor incurred. The direct labor hours per
unit is 30.03.The direct labor rate per hour is $13 per hour. All
direct labor is paid for in the month in which the work is
performed. The direct labor total cost for each of the upcoming
three months is as follows:
|
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|
f. |
Monthly manufacturing overhead costs are $6,500 |
|||||||||
|
g. |
Computer equipment for the administrative offices will be
purchased in the upcoming quarter. In January, Dalton
Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 andMarch's cash expenditure will be $15,800. |
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|
h. |
Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. | |||||||||
|
i. |
Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,700 for the entirequarter, which includes depreciation on new acquisitions. | |||||||||
|
j. |
Dalton Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $140,000. The interest rate on these loans is 11% per month simple interest(not compounded). The company would pay down on the line of credit balance in increments of $1,000if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. |
|||||||||
|
k. |
The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes. |
I only need help with requirement 4
In: Accounting