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5.Operating budgets consist of all except: Select one:

a. sales budget

b. pro forma income sheet

c. production budget

d. direct materials budget

e. direct labor budget

6-Major steps in preparing the budget include all except: Selectone:

a. break-down of marginal revenue and expenses

b. prepare a sales forecast

c. determine expected production volume

d. estimate manufacturing costs and operating expenses

e. determine cash flow and other financial effects

7-Cash budget consists typically of all the following except:Select one:

a. cash receipts section

b. cash disbursement section

c. cash surplus or deficit section

d. cash retrieval section

e. financing section

8-The performance report based on analysis of variances shouldaddress the following questions except: Select one:

a. is it favorable or unfavorable

b. if unfavorable, is it significant enough for furtherinvestigation

c. if it is significant, is it controllable

d. if it is controllable who is responsible for the variance

e. what causes favorable variances

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Jean Keeling
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28 Sep 2019
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1.In the predetermined factory overhead rate the budgetedactivity units used in the denominator or formula known as costdriver are measured in all the following except: Select one: a.direct labor hours b. machine hours c. direct labor costs d.indirect labor costs e. production units

2.Activity-based costs include the following steps except:Select one: a. identify activities that consume resources b.identify the cost drivers associated with each activity or activitypool c. calculate an applied rate for each activity d. assign coststo products by multiplying the cost pool rate by the number of costdriver units e. identify predetermined rates

3.Activity cost drivers for marketing expenses include: Selectone: a. selling – sales calls, orders, volume of sales b.warehousing – number of items stored, volume of items stored c.credit and collection –number of customer orders, dollar amounts d.all the above e. none of the above

4.Manufacturing organizations perform all the following except:Select one: a. design and manufacture products for sale b. reflectthree inventory accounts on balance sheets c. determine the cost ofgoods manufactured d. include and determine cost of goods incalculation of cost of goods sold e. maintain only one inventoryaccount on the balance sheet

This is my fifth and final time... Can someone please provide methe FORMULAS, ANSWERS, AND QUARTER TOTALS FOR THIS SECTION... IT'SNOT THAT HARD TO COMPREHEND.. PLEASE I NEED IT ASAP!!!

Need the Quarter calculations also in this section.... It wasnot provided to me the last three times that I requested it!!

Acct 505 project 1 Managerial Accounting 15th Edition Garrison,Noreen, and Brewer 2014 McGraw-Hill

COURSE PROJECT 1 INSTRUCTIONS

You have just been contracted as a budget consultant by LBJCompany, a distributor of bracelets to various retail outletsacross the country. The company has done very little in the way ofbudgeting and at certain times of the year has experienced ashortage of cash.

You have decided to prepare a cash budget for the upcomingfourth quarter in order to show management the benefits that can begained from proper cash planning. You have worked with accountingand other areas to gather the information assembled below.

The company sells many styles of bracelets, but all are sold forthe same $10 price. Actual sales of bracelets for the last threemonths and budgeted sales for the next six months follow:

July (actual)

20,000

August (actual)

26,000

September (actual)

40,000

October (budget)

70,000

November (budget)

110,000

December (budget)

60,000

January (budget)

30,000

February (budget)

28,000

March(budget)

25,000

The concentration of sales in the fourth quarter is due to theChristmas holiday. Sufficient inventory should be on hand at theend of each month to supply 40% of the bracelets sold in thefollowing month.

Suppliers are paid $4 for each bracelet. Fifty-percent of amonth's purchases is paid for in the month of purchase; the other50% is paid for in the following month. All sales are on creditwith no discounts. The company has found, however, that only 20% ofa month's sales are collected in the month of sale. An additional70% is collected in the following month, and the remaining 10% iscollected in the second month following sale. Bad debts have beennegligible.

Monthly operating expenses for the company are given below:

Variable expenses:

Salescommissions 4% of sales

Fixed expenses:

Advertising $220,000

Rent $20,000

Salaries $110,000

Utilities $10,000

Insurance $5,000

Depreciation $18,000

Insurance is paid on an annual basis, in January of eachyear.

The company plans to purchase $22,000 in new equipment duringOctober and $50,000 in new equipment during November; bothpurchases will be for cash. The company declares dividends of$20,000 each quarter, payable in the first month of the followingquarter.

Other relevant data is given below:

Cash balance as of September 30 $74,000

Inventory balance as of September30 $112,000

Merchandise purchases forSeptember $200,000

The company maintains a minimum cash balance of at least $50,000at the end of each month. All borrowing is done at the beginning ofa month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the companyto borrow the exact amount needed at the beginning of each month.The interest rate on these loans is 1% per month and for simplicitywe will assume that interest is not compounded. At the end of thequarter, the company will pay the bank all of the accrued intereston the loan and as much of the loan as possible while stillretaining at least $50,000 in cash.

Required:

Prepare a cash budget for the three-month period ending December31. Include the following detailed budgets:

1.

a. A sales budget, by monthand in total.

b. A schedule of expectedcash collections from sales, by month and in total.

c. A merchandise purchasesbudget in units and in dollars. Show the budget by month and intotal.

d. A schedule of expectedcash disbursements for merchandise purchases, by month and intotal.

2. A cash budget. Show the budget bymonth and in total. Determine any borrowing that would be needed tomaintain the minimum cash balance of $50,000.

Excess(deficiency) of receipts
overdisbursements (182,000) (6,000) 350,000 NEED THE QUARTER TOTALS
Financing:
Borrowings 232,000 56,000
Repayments 288,000 - I KNOW THIS WRONG.. HELP
Interest (2,880)
Total financing 232,000 56,000 (290,880)
Cash balance, ending 50,000 50,000 59,120

ABC Company, an office supplies specialty store, prepares its master budget on a quarterly basis.
The following data have been assembled to assist in preparing the master budget for the first quarter.
a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances:
Debits Credits
Cash $48,000
Accounts receivable 195,000
Inventory 45,600
Buildings and equipment (net) 350,000
Acccounts payable $79,800
Common stock 450,000
Retained earnings 108,800
$638,600 $638,600
b. Actual sales for December and budgeted sales for the next four months are as follows:
December (actual) January February March April
$260,000 $380,000 $410,000 $280,000 $210,000
c. Sales are collected as follows:
25% collected in cash at the time of the sale
75% on credit and collected in the month following sale
The accounts receivable at December 31 are a result of December credit sales.
d. The company's gross margin as a percent of sales is 40%
In other words, cost of goods sold is 60% of sales.
e. Monthly expenses are budgeted as follows:
Salaries and wages $35,000 per month
Advertising $50,000 per month
Shipping 4% of sales
Other expenses 3% of sales
Depreciation, including depreciation on new assets acquired during the quarter,
will be $42,000 for the quarter.
All selling and administrative expenses, except depreciation, are paid in cash in the month they are incurred.
f. Each month's ending inventory should equal
20% of the following month's cost of goods sold
g. Inventory purchases are paid for as follows:
50% in the month of the purchase
with the remaining balance paid in the following month.
h. During February, the company will purchase a new copy machine for
$2,100 cash.
During March, the company will purchase other equipment for
$76,000 cash.
i. Cash dividends paid in January will be $35,000
j. Management wants to maintain a current cash balance of $20,000
The company has an agreement with the local bank that allows the company to
borrow in increments of $1,000 at the beginning of the month.
The monthly interest rate on the loan is 1%
For simplicity, assume that the interest is not compounded.
The company would, as far as it is able, repay the loan plus any accumulated interest at the end of the quarter.
Required: Using the data above, complete the following statements and schedules for the first quarter using the formats given below.
To receive full credit, all amounts below must be entered as formulas or cell references, except for the financing section of the cash budget.
Submissions using formulas or cell references for the financing section may receive up to 3 points extra credit,
dependent upon the degree to which the formulas can be used for any and all possible scenarios. (Hint: IF statements.)
1. Schedule of expected cash collections January February March Quarter
Cash sales
Credit sales check figure:
Total cash collections Total cash collections =
$1,055,000
2a. Merchandise purchases budget January February March Quarter
Budgeted cost of goods sold
Desired ending inventory
Total needs
Beginning inventory
Required purchases
2b. Schedule of expected cash disbursements for merchandise purchases
January February March Quarter
December purchases
January purchases check figure:
February purchases Total cash disbursements
March purchases for purchases =
Total cash disbursements for purchases $621,600
3. Cash budget January February March Quarter
Beginning cash balance
Cash collections
Total cash available
Cash disbursements:
Inventory purchases
Selling & admin. expenses
Equipment purchases
Cash dividends
Total cash disbursements
Excess (deficiency) of cash
Financing:
Borrowing
Repayment of principal
Interest
Total financing check figure:
Ending cash balance Mar. 31 cash balance =
$37,650
4. Prepare an absorption costing income statement for the quarter ended March 31 in the space below.
check figure:
Net income =
$55,350
5. Prepare a balance sheet as of March 31 in the space below.
check figure:
A = L + SE =
$658,950

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