The budget director for Martin Washing Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

1. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.

2. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.

3. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

Types of Tests. For each of the research studies below, select the statistical test that best answers the question. Do not attempt to answer the research questions.

Answers

The budget director for Campbell Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

Required

1. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.

2. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.

3. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

AquariumAquarium

Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same? time, competition has forced

AquariumAquarium?'s

suppliers to lower the prices that

AquariumAquarium

will pay when it replaces its inventory. It is now December? 31,

20162016?,

and the current replacement cost of

AquariumAquarium?'s

ending inventory is

$ 75 comma 000$75,000

below what

AquariumAquarium

actually paid for the? goods, which was

$ 200 comma 000$200,000.

Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of

$ 820 comma 000$820,000.

Requirements

Requirement a. What accounting action should

AquariumAquarium

take in this? situation?

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

To prepare a master budget for April, May, and June of 2017, management gathers the following information:

Sales for March total 21,800 units. Forecasted sales in units are as follows: April, 21,800; May, 18,700; June, 21,000; and July, 21,800. Sales of 253,000 units are forecasted for the entire year. The product’s selling price is $22.50 per unit and its total product cost is $18.00 per unit.

Company policy calls for a given month’s ending raw materials inventory to equal 50% of the next month’s materials requirements. The March 31 raw materials inventory is 4,830 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,300 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.

Company policy calls for a given month’s ending finished goods inventory to equal 80% of the next month’s expected unit sales. The March 31 finished goods inventory is 17,440 units, which complies with the policy.

Each finished unit requires 0.50 hours of direct labor at a rate of $9 per hour.

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $30,750 per month is treated as fixed factory overhead.

Sales representatives’ commissions are 8% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $4,300.

Monthly general and administrative expenses include $25,000 administrative salaries and 0.7% monthly interest on the long-term note payable.

The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).

All raw materials purchases are on credit, and no payables arise from any other transactions. One month’s raw materials purchases are fully paid in the next month.

The minimum ending cash balance for all months is $53,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.

Dividends of $23,000 are to be declared and paid in May.

No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter.

Equipment purchases of $143,000 are budgeted for the last day of June.

Required:
Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.):

1. Sales budget.
2. Production budget.
3. Raw materials budget.
4. Direct labor budget.
5. Factory overhead budget.
6. Selling expense budget.
7. General and administrative expense budget.
8. Cash budget.
9. Budgeted income statement for the entire second quarter (not for each month separately).
10. Budgeted balance sheet.

Sales budget. (Round Budgeted unit price to 2 decimal places.)

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

To prepare a master budget for April, May, and June of 2017, management gathers the following information:
Sales for March total 20,100 units. Forecasted sales in units are as follows: April, 20,100; May, 18,900; June, 19,700; and July, 20,100. Sales of 246,000 units are forecasted for the entire year. The product’s selling price is $27.50 per unit and its total product cost is $23.30 per unit.

Company policy calls for a given month’s ending raw materials inventory to equal 50% of the next month’s materials requirements. The March 31 raw materials inventory is 4,815 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,600 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.

Company policy calls for a given month’s ending finished goods inventory to equal 70% of the next month’s expected unit sales. The March 31 finished goods inventory is 14,070 units, which complies with the policy.

Each finished unit requires 0.50 hours of direct labor at a rate of $21 per hour.

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.00 per direct labor hour. Depreciation of $25,440 per month is treated as fixed factory overhead.

Sales representatives’ commissions are 6% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $3,600.

Monthly general and administrative expenses include $18,000 administrative salaries and 0.5% monthly interest on the long-term note payable.

The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).

All raw materials purchases are on credit, and no payables arise from any other transactions. One month’s raw materials purchases are fully paid in the next month.

The minimum ending cash balance for all months is $46,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.

Dividends of $16,000 are to be declared and paid in May.

No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter.

Equipment purchases of $136,000 are budgeted for the last day of June.

Required:
Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar.):

1. Sales budget.
2. Production budget.
3. Raw materials budget.
4. Direct labor budget.
5. Factory overhead budget.
6. Selling expense budget.
7. General and administrative expense budget.
8. Cash budget.
9. Budgeted income statement for the entire second quarter (not for each month separately).
10. Budgeted balance sheet.

Burke Ltd. began operations in February 2008 with 4,500 units of inventory that it purchased at a cost of $12.00 each. The company’s purchases during February were as follows:

Feb 6       3,500 units   @   $12.00

Feb 14       2,000 units   @    $11.80

Feb 23       8,200 units   @   $11.65

Feb 28       3,600 units   @   $11.40

Sales during February:

Feb 4       1,500 units

Feb 15       5,800 units

Feb 24       7,200 units

Burke uses a periodic inventory system.

Required:

a. Calculate the cost of goods sold for February using the weighted average cost flow assumption.

b. Calculate the cost of goods sold for February using the first-in, first-out cost flow assumption.

c. Which inventory cost flow assumption results in the greater net income for February? Which results in the smaller?

d. Which inventory cost flow assumption results in the larger inventory balance at the end of February? Which results in the smaller?

As an employer, you can impact the lives of employees. Beyond tangible rewards such as pay, and intangibles such as mentoring, providing a generous employee benefits package is something to consider. In order to offer generous benefits, you must first practice careful financial planning. Most benefits packages do not come cheap and costs can rise exponentially; especially with the rising cost of health care.

You have recently become the Total Compensation Manager at XYZ, Inc. You are responsible for building the benefits packages for the full-time, part-time and contingent workforce. *Make sure to identify how the benefits packages differ, if at all.

Identify which type of health care provider(s) you would choose and why?

• Health Maintenance Organizations
• Preferred Provider Organizations
• Point-of-Service Plans
• High-Deductible Health Plans

Which funding source will the organization choose and why?

• Full-Insurance
• Self-Insurance

Will the organization offer voluntary benefits?

• Dental Insurance
• Life Insurance
• Vision, etc.

And how will those be funded?

• Fully Funded Employer Plans: A company covers 100 percent of its employees' costs.
• Partially Funded Employer Plans: A company pays a share of its employees' costs, usually in the ballpark of 80 percent. Employees cover the remainder.
• Fully Funded Employee Plans: Employees pay the entire cost of their dental benefits, while the company absorbs only the costs of administrative costs and payroll deductions.

What other types of benefits will you offer? Why?

• Flexible Spending Accounts
• Retirement Savings Plan
  • Defined Contribution
  • Defined Benefit
• Paid Time Off

_   10.   When a country experiences capital flight, which of the following best explains the effects?

____   11.   Which of the following expenditure items is responsible for the decrease in real GDP during a recession?

____   12.   Which of the following is NOT included in aggregate demand?

____   13.   Which of the following shifts aggregate demand to the left?

____   14.   Which of the following shifts aggregate demand to the right?

____   15.   According to the misperceptions theory of the short-run aggregate supply curve, if the price level increases more than people expect, how do firms change their behaviour?

____   16.   Consider the following equation, where a is a positive number: quantity of output supplied = natural rate of output + a (actual price level – expected price level). What does this equation represent?

____   18.   How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?

____   19.   If the economy is initially in long-run equilibrium, which of the following best describes the effects of a shift in aggregate demand?

____   20.   What changes are likely to happen in an economy when production costs rise?

____   21.   The wealth effect helps explain the downward slope of the aggregate-demand curve. How important is this effect and why?

Assume you are hosting a gathering for 20-25 people. What are five activities that might be in your work breakdown structure? Please number these and give them in order of what would happen first, second, etc. Which of these activities do you believe to be most important and why?