Consider the following scenario: You plan to make quarterly deposits into a savings account that earns 10% interest compounded continuously. You plan to make the first deposit of $500 at the end of the first quarter and increase the deposit by $100 each subsequent quarter. Which of the following best represents the future value of this scenario at the end of the 7th year?
In: Economics
Strickland Crop's manufacturing overhead budget for the first quarter of 2013 contained the following data:
Variable Costs
Indirect materials $40,000
Indirect labor $24,000
Utilities $20,000
Maintenance $12,000
Fixed Cost
Supervisor's salary $80,000
Depreciation $16,000
Property taxes $8000
Actual variable cost for the first quarter were:
indirect materials $37200
indirect labor $26400
utilities $21000
maintenance $10600
Actual fixed costs were as expected except for the property taxes which were $9000.
All cost are considered controllable by the department manger except for the supervisor's salary.
Instructions
Prepare a manufacturing overhead responsibility performance report for the first quarter.
In: Accounting
The company PR Products Corp. estimates that its quarterly sales for the next year are as follows: (units) The price per unit is $ 70
1. 1 Quarter 30,000 units
2. 2 Quarter 50,000
3. 3 Quarter 60,000
4. 4 Quarter 40,000
Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter they are made and 40% in the following quarter.
Finished Goods' desired ending inventory represents 20% of next or next quarter unit sales. Finished Goods starting inventory is 6,000 units.
3 pounds of Raw Material per unit is required for the production required. Raw Material's desired inventory is 10% of the required production for the next quarter. Raw Material's initial inventory is 12,000 units. The cost of Raw Material is $ 1.00 per pound.
Accounts payable on 12/31 / X0 total $ 60,000. Payments for Raw Material purchases are made at the rate of 70% in the quarter of purchase and the other 30% in the following quarter.
The invested time of direct labor per unit is 1.5 hour. The hourly direct labor cost is $ 20.00.
Expected Cash Collections
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T1 |
T2 |
T3 |
T4 |
Year |
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Account Receivables 12/31/X0 |
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Total Cash Collections |
$ |
$ |
$ |
$ |
$ |
Production Budget
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T1 |
T2 |
T3 |
T4 |
Year |
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Expected sales |
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Desired ending inventory |
8,500 |
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Total needs |
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Beginning inventory |
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Units to be produced |
Direct Material Budget
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T1 |
T2 |
T3 |
T4 |
Year |
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Units to be produced |
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RM needed per unit (libras) |
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Production needs |
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Desired ending inventory of RM |
4,500 |
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Total needs |
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Beginning inventory of RM |
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RM to be purchased |
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Cost of RM per pound |
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Cost of RM to be purchased |
$ |
$ |
$ |
$ |
$ |
In: Accounting
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
| Year 2 | Year 3 | ||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 70,000 | 100,000 | 160,000 | 110,000 | 80,000 | ||
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 42,000 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)
In: Accounting
|
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: |
|
Year 2 |
Year 3 |
||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 66,000 | 96,000 | 156,000 | 106,000 | 76,000 | ||
|
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 39,600 grams of musk oil will be on hand to start the first quarter of Year 2. |
| Required: |
|
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.) |
In: Accounting
Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 80,000 110,000 170,000 120,000 90,000 Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 32,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2
In: Accounting
Exercise 8-3 Direct Materials Budget [LO8-4]
Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
| Year 2 | Year 3 | ||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 94,000 | 124,000 | 184,000 | 134,000 | 104,000 | ||
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 75,200 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.
In: Accounting
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,100 2 7,500 3 8,400 4 10,240 The January 1, 2017, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter and in total for 2017. TURNEY COMPANY Production Budget choose the accounting period Product HD-240 Quarter 1 2 3 4 Year select an opening Production Budget item Enter a number of units Enter a number of units Enter a number of units Enter a number of units select between addition and deduction: select a production budget item Enter a number of units Enter a number of units Enter a number of units Enter a number of units select a summarizing line for the first part enter a total number of units for the first part enter a total number of units for the first part enter a total number of units for the first part enter a total number of units for the first part select between addition and deduction: select a production budget item Enter a number of units Enter a number of units Enter a number of units Enter a number of units select a closing Production Budget item enter a total amount for the Production Budget enter a total amount for the Production Budget enter a total amount for the Production Budget enter a total amount for the Production Budget enter a total amount for the Production Budget eTextbook and Media
In: Accounting
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
| Fixed Budget | ||||||||
| Sales (14,000 units) | $ | 2,940,000 | ||||||
| Cost of goods sold | ||||||||
| Direct materials | $ | 336,000 | ||||||
| Direct labor | 588,000 | |||||||
| Production supplies | 378,000 | |||||||
| Plant manager salary | 136,000 | 1,438,000 | ||||||
| Gross profit | 1,502,000 | |||||||
| Selling expenses | ||||||||
| Sales commissions | 112,000 | |||||||
| Packaging | 196,000 | |||||||
| Advertising | 100,000 | 408,000 | ||||||
| Administrative expenses | ||||||||
| Administrative salaries | 186,000 | |||||||
| Depreciation—office equip. | 156,000 | |||||||
| Insurance | 126,000 | |||||||
| Office rent | 136,000 | 604,000 | ||||||
| Income from operations | $ | 490,000 | ||||||
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units
| TEMPO COMPANY | |||||
| Flexible Budgets | |||||
| For Quarter Ended March 31, 2017 | |||||
| ------Flexible Budget------ | ------Flexible Budget at ------ | ||||
| Variable Amount per Unit | Total Fixed Cost | 12,000 units | 14,000 units | 16,000 units | |
In: Accounting
Suppose that government spending makes private firms more productive; for example, government spending on roads and bridges lowers the cost of transportation. This means that there are now two effects of government spending, the first being the effects discussed in this chapter of an increase in G and the second being similar to the effects of an increase in the nation’s capital stock K.
(a) Show that an increase in government spending that is productive in this fashion could increase welfare for the representative consumer.
(b) Show that the equilibrium effects on consumption and hours worked for an increase in government spending of this type are ambiguous but that output increases. You must consider income and substitution effects to show this.
In: Economics