We work for Cola Company and there have been some discussions on which pressure setting is best for filling out bottles. If we overfill the bottles then we are spending money we do not need to. If we are under filling the bottles we run the risk of dissatisfaction of the customers. If we can fill the bottles using a higher psi we can run the line faster and thus increase our production. Our current fill pressure is 25psi. Management wants to know if there is a different variation from the standard between the two pressure settings.

ml (25psi volume): 1007.2, 1008.4, 1010.2, 1011.2, 1008.0, 1009.0, 1011.4, 1013.4, 1010.6, 1010.9

ml (30psi volume): 1001.2, 1003.1, 1003.6, 1001.4, 1002.7, 1004.3, 1002.6, 1005.0, 1003.7, 1004.4

Sample size of first set =

Sample size of second set =

Sample mean of first set =

Sample mean of second set =

Sample standard deviation of the first set =

Sample standard deviation of the second set =

Estimate of variance =

Confidence Coefficient =

Alpha =

Calculated Degrees of Freedom =

Calculated Test Statistic =

What can you conclude by observing your confidence limits? (No difference or there is a difference?) =

Find the final amount in the following retirement​ account, in which the rate of return on the account and the regular contribution change over time. ​$1000 per quarter invested at 5.6​%, compounded​ quarterly, for 10 ​years; then ​$1700 per quarter invested at 6.7​%, compounded​ quarterly, for 15 years.

Find the final amount in the account. ​$

You have been hired by the McClosky Corporation and they manufacture industrial dye. The company is preparing its 20X9 master budget and has presented you with the following information:

1. The projected December 31, 20X8, balance sheet for the company is as follows:

                      Assets

Cash                                                      $ 6,080

Accounts Receivable                           29,500

Raw Materials Inventory                      1,000

Finished Goods Inventory                    3,200

Prepaid Insurance                                  1,800

Building                               $ 350,000

Accum Depreciation            (25,000) 325,000

Total Assets                                      $  366,580

            Liabilities and Equity

Notes Payable                                   $ 25,000

Accounts Payable                                  2,650

Dividends Payable                               12,000

Total Liabilities                                $  39,650

Common Stock             $ 200,000

Paid-In Capital                    40,000

Retained Earnings              86,930   326,930

Total Liabilities and

  Stockholders’ Equity                     $ 366,580

Other Information that is being provided to you:

2. The Accounts Receivable balance at 12/31/20X8 represents the balances of November and December credit sales. Sales were $90,000 and $85,000 respectively.
3. Estimated sales in gallons of dye for January through May 20X9 are as follows:

    January                                                9,000

    February                                           11,000

   March                                                 16,000

   April                                                    14,000

   May                                                     13,000

   June                                                     12,000

Each gallon of dye sells for $ 15

4. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. McClosky does not provide cash discounts and they are not expecting any bad debts.
5. Each gallon of dye has the following standard quantities and costs for direct material and direct labor:

1.4 gallons of direct material (some evaporation takes place during processing) X $.90 per gallon                                                               $ 1.26

0.5 direct labor X $ 8 per hour                                                                4.00

6. Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $0.08 per machine hour. Variable overhead consists of utility costs. Total annual fixed overhead is $150,000; it is applied at $ 1 per gallon based on expected annual capacity of 150,000 gallons. Fixed overhead per year is made up of the following costs:

     Salaries                                         $ 110,000

     Utilities                                               15,000

     Insurance                                             1,800

     Depreciation-factory                        23,200

Fixed overhead is incurred evenly throughout the year.

7. There is no beginning Work-in-Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,100 gallons of direct material at a standard cost of $.90 per gallon. There are 500 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $6.28 per gallon; direct material, $.98, direct labor, $4.00; variable overhead $ .30; fixed overhead , $1,00
8. Accounts Payable relates to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment.
9. The dividend will be paid in January 20X9.
10. A new piece of equipment will be purchased in March 20X9 and the cost is $12,000. Payment of 80 percent will be made in March and 20 percent in April. The equipment has a useful life of three years and will be placed in service on March 1.
11. The note payable has a 12 percent interest rate; interest is paid at the end of each month. The principle of the note is repaid as cash is available to do so.
12. The McClosky management team wishes to maintain a minimum cash balance of $5,500. Investments and borrowing are made in $100 amounts. (Even $100 amounts). Interest on any borrowings are expected to be 12 percent per year, and investments will earn 4 percent per year.
13. The ending finished goods inventory should include 5 percent of next month’s sales. This will not be true at the beginning of 20X9 due to a miscalculation in sales for the month of December. The ending inventory of raw materials should be 5 percent of next month’s needs.
14. Selling and administration costs per month are as follows: salaries $25,000; rent, $7,000 and utilities, $800. These costs are paid in cash as they are incurred.
15. The company’s tax rate is 20 percent.

Please note: You will be preparing a master budget for the first of 20X9 and the supporting schedules listed below:

Milestone 3:

1. Budgeted Balance Sheet
2. Cash Budget
3. Budget Presentation and please address the following questions:

1. The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2^nd quarter.
2. The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information?
3. The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization.
4. Please explain the to the management team how a competitor’s actions can affect business planning.

Trial balance

Prepare a Profit & Loss statement

This is now the end of financial year 2020. You are required to compile the financial data for the last three months to prepare a Statement of Financial Performance in Excel or Word. Please provide your opinion about the Profit and Loss Statement for the last Quarter. Above is the data for the last quarter.

The Mullins Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows.

Projected Sales in Units

The budget committee has also completed the following information on inventories.

Raw Materials

Ending Balance, June, 25,000 lbs

Desired ending levels (monthly 5% of next month's production needs)

Work-In-Progress

None

Finished Goods Inventory

Ending Balance, June, 14,000 units

Desired ending levels: 15% of next month's sales

The Engineering Department has developed the following standards upon which the production budgets will be developed.

The Mullins Company uses a modified allocation method for allocating overhead costs. The rates that will be used in the coming year are as follows.

Prepare the following production budgets for July, August, and September for the Mullins Company.

1. Production Budget
2. Materials Purchases Budget
3. Direct Labor Budget
4. Overhead Budget
5. Manufactured Budget (for the quarter, quarter totals only)

Ingles Corporation is a manufacturer of tables. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next month’s sales are in the current month’s finished goods inventory. Ingles also purchases sufficient materials to ensure that the current month’s ending materials inventory is 60 percent of the following month’s direct materials required for production. Ingle’s sales budget in units for the next quarter is as follows:

The cost of each table leg is $10

The tables to be produced in September are 2,100 (the same as the units sold for that month)

July........................................................................................................ 2,450

August.................................................................................................. 2,900

September............................................................................................. 2,100

Ingle’s ending inventories in units for July 31 are as follows:

Finished goods...................................................................................... 1,900

Materials (legs)...................................................................................... 4,000

Requirements:

Prepare Ingle’s production budget for tables in August.

Prepare Ingle’s August direct materials purchases budget for table legs.

How many employees will be required for the Assembly Department in August?Fractional employees are acceptable since employees can be hired on a part-time basis.Assume a 40-hour week and a 4-week month.

Problem 8-27 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10]

References

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