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A new computer virus (AcctBGone) destroyed most of the companyrecords at BackupsRntUs. The computer experts at the company couldrecover only a few fragments of the company’s factory ledger forMarch as follows:

Direct Materials Inventory
BB(3/1) 90,700
Work-In-Process Inventory
BB(3/1) 27,400
Finished Goods Inventory
EB(3/31) 66,100
Costof Goods Sold
Manufacturing Overhead Control
Accounts Payable
54,600 EB(3/31)


Further investigation and reconstruction from other sources yieldedthe following additional information:

The controller remembers clearly that actual manufacturingoverhead costs are recorded at $19 per direct labor-hour. (Thecompany assigns actual overhead to Work-in-Process Inventory.)

The production superintendent’s cost sheets showed only one jobin Work-in-Process Inventory on March 31. Materials of $15,700 hadbeen added to the job, and 300 direct labor-hours had been expendedat $34 per hour.

The Accounts Payable are for direct materials purchases only,according to the accounts payable clerk. He clearly remembers thatthe balance in the account was $35,600 on March 1. An analysis ofcanceled checks (kept in the treasurer’s office) shows thatpayments of $252,900 were made to suppliers during the month.

The payroll ledger shows that 5,400 direct labor-hours wererecorded for the month. The employment department has verified thatthere are no variations in pay rates among employees (thisinfuriated Steve Fung, who believed that his services wereunderpaid).

Records maintained in the finished goods warehouse indicate thatthe finished goods inventory totaled $109,000 on March 1.

The cost of goods manufactured in March was $564,100.

Required:

Determine the following amounts:

a. Work-in-process inventory, March 31.

b. Direct materials purchased during March.

c. Actual manufacturing overhead incurredduring March.

d. Cost of goods sold for March.

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,899,000 of fixed manufacturing overhead for an estimated allocation base of 289,900 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory.

The company’s beginning balance sheet is as follows:

Wallis Company
Balance Sheet
1/1/XX
(dollars in thousands)
Assets
Cash $ 850
Raw materials inventory 300
Finished goods inventory 420
Property, plant, and equipment, net 10,000
Total assets $ 11,570
Liabilities and Equity
Retained earnings $ 11,570
Total liabilities and equity $

11,570

The company’s standard cost card for its only product is as follows:

Inputs (1)
Standard
Quantity
or Hours		 (2)
Standard
Price
or Rate		 Standard
Cost
(1) × (2)
Direct materials 2 pounds $ 33.00 per pound $ 66.00
Direct labor 3.00 hours $ 15.00 per hour 45.00
Fixed manufacturing overhead 3.00 hours $ 10.00 per hour 30.00
Total standard cost per unit $ 141.00

During the year Wallis completed the following transactions:

Purchased (with cash) 237,500 pounds of raw material at a price of $31.00 per pound.

Added 218,750 pounds of raw material to work in process to produce 96,500 units.

Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 248,000 hours at an average cost of $16.00 per hour to manufacture 96,500 units.

Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed to manufacture 96,500 units. Actual fixed overhead costs for the year were $2,747,500. Of this total, $1,355,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,392,500 related to depreciation of equipment.

Transferred 96,500 units from work in process to finished goods.

Sold (for cash) 93,500 units to customers at a price of $170 per unit.

Transferred the standard cost associated with the 93,500 units sold from finished goods to cost of goods sold.

Paid $2,127,500 of selling and administrative expenses.

Closed all standard cost variances to cost of goods sold.

Required:

1. Compute all direct materials, direct labor, and fixed overhead variances for the year.

2. Record transactions a through i for Wallis Company.

3. Compute the ending balances for Wallis Company’s balance sheet.

4. Prepare Wallis Company’s income statement for the year.

Compute all direct materials, direct labor, and fixed overhead variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Materials price variance
Materials quantity variance
Labor rate variance
Labor efficiency variance
Budget variance
Volume variance

Record transactions a through i for Wallis Company.

Compute the ending balances for Wallis Company’s balance sheet.

(Unfavorable variances and decreases in balance sheet accounts should be entered with a minus sign. Enter your dollars in thousands.)

Show less
Wallis Company
Transaction Analysis
For the Year Ended 12/31/XX
(dollars in thousands)
Cash Raw Materials Work-in-Process Finished Goods PP&E (net) = Materials Price Variance Material Quantity Variance Labor Rate Variance Labor Efficiency Variance Fixed Overhead Budget Variance Fixed Overhead Volume Variance Retained Earnings
1/1 =
a. =
b. =
c. =
d. =
e. =
f. =
g. =
h. =
i. =
12/31 =

Prepare Wallis Company’s income statement for the year. (Enter your dollars in thousands. Round your answers to the nearest whole dollar amount.)
Wallis Company
Income Statement
For the Year Ended 12/31/XX
(dollars in thousands)
Total variance adjustments
0
$0

All questions have to do with cost accounting systems,more in particular, process cost systems.

Complete each of the following statements by writing theappropriate words or amounts in the answers blanks.

1-5. Identify whether the process cost or job order cost systemwould be more appropriate for each of the followingbusinesses:
1. accounting firm 1. ____
2. breakfast cereal manufacturer 2. ____
3. ship construction 3. ____
4. pharmaceuticals company 4. ____
5. computer chip manufacturer 5. ____

6. The number of units that could have been completed within agiven accounting period with respect to direct materials andconversion costs is the 6. ____

7. Direct labor and factory overhead are referred to as 7.____

8–9. Oslo Manufacturing incurred $72,000 of direct materialscosts, direct labor costs of $24,500, and factory overhead of$20,500. If 1,000 direct materials equivalent units and 900conversion equivalent units were manufactured, then:
8. The equivalent unit cost for direct materials is 8. $____
9. The equivalent unit cost for conversion is 9. $____

10. The periodic report prepared for each processing department,summarizing (1) the units for which the department is responsibleand their disposition and (2) the costs charged the department andtheir allocation, is termed the 10. ____

11. The method of inventory costing that assumes the unitproduct costs should be determined separately for each period inthe order in which the costs were incurred is 11. ____

12–15. In a process cost system, the cost of goods completed andthe ending inventory valuation are determined by using thefollowing four steps:
12. ____
13. ____
14. ____
15. ____

16–17. The transferred costs of completed production inDepartment A using a process cost system include:
16. ____
17. ____

18–20. The three categories of units to be assigned cost for anaccounting period in a process cost system are:
18. ____
19. ____
20. ____

21–24. Department W had 8,000 units in work in process that were30% converted at the beginning of the period at a cost of $16,400.During the period, 15,000 units of direct materials were added at acost of $48,000, 16,000 units were completed, and 7,000 units were40% completed. The first-in, first-out cost method is used and allmaterials are added at the beginning of the process. Direct laborwas $30,000, and factory overhead was $54,000 during theperiod.
21. The number of equivalent units of conversion for the period was21. ____
22. The total conversion costs for the period were 22. $____
23. The conversion cost of the units started and completed duringthe period was 23. $____
24. The conversion cost of the 7,000 units in process at the end ofthe period was 24. $____

Indicate the titles of the accounts to be debited and creditedin recording the selected transactions given below by inserting theletter or letters of the account titles listed in the appropriatecolumns. (Do not record the amounts.)

ACCOUNTS

A. Accounts Payable E. FactoryOverhead–Department A I. Sales

B. Accounts Receivable F.Factory Overhead–Department B J. Wages Payable

C. Cash G. Finished GoodsK. Work in Process–Department A

D. Cost of Goods Sold H.Materials L. Work inProcess–Department B

TRANSACTIONS

Debit

Credit

0. Paid cash for wages owed, $47,000.............................................................

J

0. ____

C

0. ____

1-2. Materials requisitioned for use in Department A,$36,000, of which $31,500 entered directly into the product.....................................................


1. ____


2. ____

3-4. Labor in Department A, $13,000, was used directlyin the manufacture of the product.....................................................................................................


3. ____


4. ____

5-6. Factory overhead applied to production inDepartment A, $6 per machine hour.....................................................................................................


5. ____


6. ____

7-8. Goods finished in Department A and transferred toDepartment B,

$79,000...............................................................................................................


7. ____


8. ____

9-10. Goodsfinished in Department B and transferred to finished goods,$114,000.............................................................................................................


9. ____


10. ____

11-12. Cost of finishedgoods sold, $126,374.........................................................

11. ____

12. ____

help me to do the budgeted income statement (in jan.feb,march) not broken down into 3, schedule of collection in sales( month 1-3),schedule of payment of manufactory cost (month 1-3) and cash budget (month 1-3)

Please show work

1) Sales Budget
2) Production Budget
3) Direct Materials Purchases Budget
4) Direct Labour Cost Budget
5) Factory Overhead Cost Budget
6) Selling and Administrative Expenses Budget
7) Budgeted Income Statement
8) Schedule of Collections from Sales
9) Schedule of Payments for Manufacturing Costs
10) Cash Budget
All budgets should be for the individual three (3) months of the first quarter of 2017.
Include a quarterly total column on the right side. (except for #7 and #10)
Each budget/requirement should be in a separate tab within one spreadsheet.
All pages should be in portrait format using the same font type and size.
Please staple the printed copy in the upper left corner.
Total Assets $1,315,625.78
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts Payable $5,755.15
Interest Payable -
Income Tax Payable -
Short Term Borrowings -
Total Current Liabilities 5,755.15
Long-Term Notes Payable 436,000.00
Total Liabilities 441,755.15
Common Stock ($5.00 Par) $475,000.00
Paid in Capital 100,000.00
Retained Earnings 298,870.63
Total Stockholders Equity 873,870.63
Total Liabilities and Stockholders Equity $1,315,625.78
1. Sales
2016 Actual Sales 2017 Estimated Sales
Nov Dec Jan Feb Mar Apr May
Units 7,835 7,970 7,450 7,090 8,320 9,070 10,120
The selling price per unit has remained constant for the past year and is expected to
remain unchanged throughout the first quarter of 2017 at an amount of $68.99
2. Cash Collection Policy
Total sales consist of the following:
Cash sales: 5%
Credit sales: 95%
Credit collections are as follows:
In the month following the month of sale: 75%
In the second month following the month of sale: 25%
The Company does not have any bad debts.
3. Production Policy
The Company's policy is to produce during each month, enough units to meet the current
month's sales as well as a desired inventory at the end of the month which should be
equal to 23% of next month's estimated sales. On December 31, 2016, the finished
goods inventory consisted of 1,714 units at a cost of $50.40.
4. Direct Materials Purchasing Policy
Each month the Company purchases enough direct materials to meet that month's
production requirements and an amount equal to 25% of the next month's estimated
production requirements. Each unit of finished product requires 2.83 pounds of direct
materials at a cost of $1.38 per pound. On December 31, 2016, the direct materials
inventory consisted of 5,213 lbs. at a cost of $1.38.
Payments are made as follows:
In the month of purchase: 80%
In the following month the balance: 20%
The accounts payable balance of $5,755.15 as of December 31, 2016, represents 20% of
purchases made in December 2016 to be paid in January 2017.
5. Direct Labor Costs
Direct labor hours required per unit of finished product: 1.75
Average rate per direct labor hour: $12.25
6. Factory Overhead
The Company applies variable factory overhead cost at the rate of 120% of direct
labor cost and fixed factory overhead on the basis of the number of direct labor hours.
The company has the following fixed overhead expenses per month:
Factory supervisor's salary $54,000.00
Factory rent 6,000.00
Factory insurance 6,500.00
Depreciation of factory equipment 600
All factory overhead costs, except depreciation, are paid for in cash during the
month in which they are incurred.
7. Selling and Administrative Expenses
Variable selling expenses are:
Freight out $0.80 per unit
Sales commissions 1% of sales
Fixed selling and administrative expenses per month are:
Salaries $8,700.00
Rent 1,800.00
Advertising 150
Insurance 250
Depreciation (excluding depreciation of
computer to be purchased at the end
of January 2017 10,050.00
8. Income Taxes
Combined tax rate is 30% of Income before taxes computed at the end of the
quarter ending March 31, 2017 , payable in the second quarter.
9. Capital Expenditures
The Company expects to buy a new computer on January 31, 2017, for use in the sales and
administrative offices at a cost of $180,000.00, which will be paid in cash. Monthly
depreciation expense will be an additional $3,000.00 .
10. Financing Policy
On March 31, 2017, the Company is scheduled to pay $300,000.00 , of the long-term notes
payable plus interest expense for the first quarter at a rate of 12%
With respect to short-term borrowing, the Company's policy is to borrow at the beginning
of a month with an anticipated cash deficiency. A minimum cash balance of $25,000.00 is
required of the end of each month. The Company repays the principal of such short-term
borrowing at the end of the first following month to the extent of anticipated excess cash.
Interest must be paid the following month at a rate of 12%. Borrowing and principal
repayments are made in multiples of $1,000.00 .
11. Investing Policy
Investments earn interest of the rate of 6% per annum which is credited to our Checking
account by the bank at the beginning of the following month. You may assume that the balance
of Marketable Securities at December 31, 2016, was outstanding throughout the entire month.
12. General Information
Use proper rounding and show two (2) decimal places of accuracy on dollar amounts.
Round up and show whole amounts on all other figures.

Vettel Manufacturing
Sales Budget

For the Quarter Ending March 31, 2017
January February March Q1 Total
Budgeted Sales (Units) 7450 7090 8320 22860
Selling Price Per Unit $68.99 $68.99 $68.99 $68.99
Total budgeted sales $513,975.50 $489,139.10 $573,996.80 $1,577,111.40

Vettel Manufacturing

Production Budget

For the Quarter Ending March 31, 2017
January February March Q1 Total
Forecasted Units Sold 7,450 7,090 8,320 22,860
Plus Desired Ending Inventory 1,631 1,914 2,087 2,087
Total 9,081 9,004 10,407 24,947
Less Estimated Beginning Units 1,714 1,631 1,914 1,714
Total Units to Produced 7,367 7,373 8,493 23,233
Vettel Manufacturing, Inc.
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2017
January February March April Quarter 1
---------------------------------------------------------------------------------------------------- ----------------------

Required Production Units

 7,367 7,373 8,493 9311 23,233

Pounds of DM per Unit

 2.83 2.83 2.83 2.83 2.83
---------------------------------------------------------------------------------------------------- ----------------------

Total DM Required for Production

 20,849 20,866 24,035 26,350 65,749

DM Purchases (75% of current mon)

 15637 15650 18026 19763

(25% of next mon

 5217 6009 6588

Total DM Purchases

 20,853 21,658 24,614 67,125
Unit Price 1.38 1.38 1.38 -
---------------------------------------------------------------------------------------------------- ----------------------
DM Purchase Cost 28777.49 29888.39 33967.02 92632.89

==========================================

 ============
Vettel Manufacturing, Inc.
Direct Labour Cost Budget
For the Quarter Ending March 31, 2017
January February March Quarter 1
---------------------------------------------------------------------------------------------------- ----------------------
Budgeted Units of Production 7367 7373 8493 23233

Direct Labor Hours Required Per Unit

 1.75 1.75 1.75 1.75
---------------------------------------------------------------------------------------------------- ----------------------
Total Direct Hours Labor Required 12892 12903 14863 40658
Hourly Rate $ 12.25 $ 12.25 $ 12.25 $ 12.25
---------------------------------------------------------------------------------------------------- ----------------------
Total Direct Labor Cost $ 157,927.00 $ 158,061.75 182071.75 $ 498,060.50

==========================================

 ============
Selling and Admin Budget'!E5= 7. Selling and Administrative Expenses
Selling and Administrative Expenses Budget Variable selling expenses are:
For the Quarter Ending March 31, 2017 Freight out $0.80 per unit
January February March Quarter 1 Sales commissions 1% of sales
Sales Units 7,450 7,090 8,320 22,860
Sales $ 513,975.50 $ 489,139.10 $ 573,996.80 $ 1,577,111.40
---------------------------------------------------------------------------------------------------- ---------------------- Fixed selling and administrative expenses per month are:
Variable Selling and Administrative Expenses: Salaries $8,700.00
Freight Out ($0.80 per unit) $ 5,960.00 $ 5,672.00 $ 6,656.00 $ 18,288.00 Rent 1,800.00
Sales Commissions (1% of sales) $ 5,139.76 $ 4,891.39 $ 5,739.97 $ 15,771.12 Advertising 150
---------------------------------------------------------------------------------------------------- ----------------------
Total Variable Selling and Administrative Expenses $ 11,099.76 $ 10,563.39 $ 12,395.97 $ 34,059.12 Insurance 250
---------------------------------------------------------------------------------------------------- ---------------------- Depreciation (excluding depreciation of

Fixed Selling and Administrative Expenses:

 computer to be purchased at the end
Salaries $ 8,700.00 $ 8,700.00 $ 8,700.00 $ 26,102.00 of January 2017 10,050.00
Rent $ 1,800.00 $ 1,800.00 $ 1,800.00 $ 5,402.00
Advertising $ 150.00 $ 150.00 $ 150.00 $ 452.00
Insurance $ 250.00 $ 250.00 $ 250.00 $ 752.00
Depreciation $ 10,050.00 $ 10,050.00 $ 10,050.00 $ 30,152.00
---------------------------------------------------------------------------------------------------- ----------------------
Total Fixed Selling and Administrative Expenses $ 20,950.00 $ 20,950.00 $ 20,950.00 $ 62,850.00
---------------------------------------------------------------------------------------------------- ============
Total Selling and Administrative Expenses $ 32,049.76 $ 31,513.39 $ 33,345.97 $ 96,909.12


Vettel Manufacturing, Inc.
Factory Overhead Cost Budget
For the Quarter Ending March 31, 2017
January February March Quarter 1

Supervisor Salaries

 54,000 54,000 54,000 162,000
Factory Rent 6,000 6,000 6,000 18,000

Factory Insurance

 6,500 6,500 6,500 19,500

Depreciation of Factory Equipment

 600 600 600 1,800

Total Factory Overhead Cost

 67,100 67,100 67,100 201,300

Variable factory overhead

 189512.40 189674.10 218486.10 597672.6

Total Factory Overhead Cost

 256,612.40 256,774.10 285,586.10 798,972.60

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