Describe "Bangladesh" Investment spending. ( Describe it 1 paragraph why it's happened ) - (2000 - 2019)
In: Economics
IGY is a US manufacturer of many types of high quality products. You are a member of the Accounting Department at IGY, LTD and you have been provided with 2020 budget estimates for Department A.
Your team is responsible to complete the following budgets for Quarter 1 (January, February and March) of 2020:
Sales
Production
Direct Materials
Direct Labor
Manufacturing Overhead
Selling & Administrative
Cash Collections
Cash Disbursements
Cash Budget
Cost of Goods Sold
Income Statement
You will need to complete some budgets for April 2020 to have the information you need for the March 2020 budget. You can make a supplementary schedule next to the budget, but show the work for April in a professional manner.
| Budget Information from Management | |
| Prepare Master Budget for Quarter 1 | |
| Sales Forecast | Units |
| January | 5,000 |
| February | 6,000 |
| March | 7,500 |
| April | 8,000 |
| May | 7,500 |
| Selling price per unit | $ 31.00 |
| Full Product Cost per Unit | $ 21.00 |
| Finished Goods Inventory | |
| Desired Finished Goods Ending Inventory-20 % Following Months Sales | 20% |
| January 1, 2020 Beginning Inventory Finished Goods in Units | 1,700 |
| Raw Materials Cost and Usage | |
| Desired Ending Raw Materials Inventory-50 % Following Months Materials Requirements | 50% |
| January 1,2020 Raw Materials Beginning Inventory- in Units | 4,925 |
| Expected June RM Ending Inventory-in Units | 4,000 |
| RM Cost per pound | $7.25 |
| RM used per unit of product - 2 pounds per unit | 2 |
| Hints: | |
|
1-- You will need April's production needs to complete the March Direct Materials Budget |
|
| Direct Labor Cost | |
| Direct labor per unit (% of hour) | 50% |
| Direct labor hourly rate | $20 |
| Overhead Expense | |
| Variable: Allocated per Direct Labor Hour | 4.20 |
| Fixed monthly overhead- Excluding Depreciation Expense | 20,000 |
| Fixed Overhead - Depreciation Expense | 5,000 |
| Selling Expenses | |
| Sales representative commission (paid in month of sale) | 5% |
| Sales manger's monthly salary | 9,000 |
| Administrative Expenses | |
| Monthly general & adminstrative expenses | 10,000 |
| Monthly interest on long-term note payable | 0.50% |
| Sale of Securities - Plan to sell securities in March | $84,000 |
| Cash Collections | |
| Collected in Month of Sale | 30% |
| Receivables collected in full month following sale | 70% |
| Accounts Recievable Balance January 1, 2020 | $165,000 |
| Cash Disbursements | |
| Raw materials purchased on credit. Paid in full the month following the purchase | 100% |
| Raw materials purchases in December | $98,500 |
| Direct Labor- Paid in the month incurred | 100% |
| Dividends are declared and paid in March | $ 2,500 |
| Tax Payments | |
| The company pays estimated income taxes of $15,500 on the last day of each quarter | $5,500 |
| Capital Purchases | |
| Equipment purchase is budgeted for the last day of March | $7,500 |
| Minimum Cash Balances | |
| Minimum ending cash balance for all months is $50,000. If necessary, the company borrows cash using a short-term line of credit at 1% per month paid at the end of Quarter 2 (June). | |
| Minumum cash balance | 50,000 |
| Monthly interest rate | 1% |
| Beginning Cash Balance on January 1,2020 | 50,000 |
In: Accounting
In the United States, the federal government pays for a considerably larger share of social welfare spending (i.e., spending on social insurance programs to help low-income, disabled, or elderly people) than it does for education spending for grades K–12. Similarly, state and local governments provide a larger share of education spending and a smaller share of welfare spending. Is this a coincidence, or can you think of a reason for why this might be so?
In: Economics
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 12,000 | 15,000 | 14,000 | 13,000 |
In addition, 15,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,200.
Each unit requires 5 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $13.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 24,000 | 27,000 | 26,000 | 25,000 |
In addition, 42,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $8,600.
Each unit requires 7 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $12.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 12,000 | 15,000 | 14,000 | 13,000 |
In addition, 15,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,200.
Each unit requires 5 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $13.50 per hour.
Required: (SHOW ALL WORK)
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 6,000 9,000 8,000 7,000 In addition, 6,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,000. Each unit requires 4 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $12.50 per hour. Required: 1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: SHOW ALL WORK
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 10,000 | 13,000 | 12,000 | 11,000 |
In addition, 20,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,800.
Each unit requires 8 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $11.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 13,000 | 16,000 | 15,000 | 14,000 |
In addition, 19,500 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,400.
Each unit requires 6 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $14.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 21,000 | 24,000 | 23,000 | 22,000 |
In addition, 21,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $8,000.
Each unit requires 4 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting