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
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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:
|
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|
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). |
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|
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:
|
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|
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. |
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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 $4,600 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. |
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|
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
Find the present value of $100 due in one year if the discount rate is 5%, 8%, 10%, 15%, 20%, and 25%. Please show your work so that I understand how your arrived at your answers
Subject is Managerial Economics
In: Economics
The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.
For the current tax year, Allwardt reports the following.
|
a. How much income is each beneficiary entitled to receive?
b. What is the trust's DNI?
c. What is the trust's taxable income?
d. How much gross income is reported by each of the beneficiaries?
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Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $680,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,060,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry
for uncollectible accounts.
$
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
| Accounts Receivable | $ |
| Allowance for Doubtful Accounts | $ |
| Bad Debt Expense | $ |
c. Determine the net realizable value of
accounts receivable.
$
In: Accounting
The heights of children are normally distributed. For three year old girls, the mean height is 38.7 inches and the standard deviation is 3.2 inches. A random sample of 5 three year old girls are chosen. Find P(x⎯⎯⎯ < 37) for n = 5. Enter your answer as an area under the curve with 4 decimal places. P(x⎯⎯⎯ < 37)
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The heights of children are normally distributed. For three year old girls, the mean height is 38.7 inches and the standard deviation is 3.2 inches. A random sample of 14 three year old girls are chosen. Find P(x⎯⎯⎯ < 37) for n = 14. Enter your answer as an area under the curve with 4 decimal places.
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In a survey of 2003 adults in a recent year, 706 made a New Year's resolution to eat healthier. Construct 90% and 95% confidence intervals for the population proportion. Interpret the results and compare the widths of the confidence intervals.
The 90% confidence interval for the population proportion p is
l
In: Statistics and Probability
In a recent year, Delaware had the highest per capita annual income with $51,803. If the standard deviation is $4850, answer the following questions: Assume that the sample is taken from a large population what is the mean and standard deviation of the sampling distribution of 16 individuals? Round calculations to four places.
A. 51,803 and 4,850
B. 51,803 and 303.1250
C. 3,237.69 and 4,850
D. 51,.803 and 1,212.5
In: Statistics and Probability
Ms. S is a 64 year-old retiree who was admitted to the hospital for an emergency splenectomy following a fall. Her medical history includes: Type II diabetes for the past 10 years, hypothyroidism, atrial fibrillation, and obesity. Until her fall, she had not had any problems related to her spleen. Her mother was also a diabetic and all of her siblings have atrial fibrillation. Medications: Synthroid, Metformin, atenolol, and a baby aspirin a day.
It is now three days post op and the large abdominal wound from her surgery is red and draining yellow drainage. Her vital signs are 145/80; HR-90, R-20, T-100.8 F. In your concept/patho map be sure to include all the steps from the risk factors to the development of the diseases or problems following her splenectomy. The more details you can provide the better.
Here are the areas to be sure to include in your concept map:
> Splenectomy: relationship among splenectomy and infectious processes; impact on red blood cells and oxygenation; stress related to surgery; impact on blood glucose.
> Hypothyroidism: impact on cardiac system; blood glucose, skin, immunity, tissue perfusion
> Diabetes: relationship among obesity, insulin resistance, changes in vessels, circulation, WBCs, relationship between blood glucose and pathogens
> Atrial fibrillation: what happens to cardiac output, WBCs, oxygenation of tissues, impact on infection > Systems connectivity: indicate all relationships between and among the various systems
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A nutritionist claims that the mean tuna consumption by a person is 3.9 pounds per year. A sample of 70 people shows that the mean tuna consumption by a person is 3.7 pounds per year. Assume the population standard deviation is 1.02 pounds. At alphaαequals=0.07 can you reject the claim?
In: Statistics and Probability