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ACCT 2101 : Exam2 Formula Sheet

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azuremammoth471
15 Mar 2019
School
LSU
Department
Accounting
Course
ACCT 2101
Professor
All

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Document Summary

= total revenue: collections schedule ( cash receipts) % of revenue x credit sales - (total must = total credit sales don"t forget about uncollectible) Remember to remove any cash collections from total sales immediately: production. + dei of fin goods (desired ending inventory) = to be produced units: dm or purchases budget. = to be produced units x quantity of materials. = raw materials requirements for production (new ceiling) Total raw materials cost: payment schedule ( disbursements) % of payment x credit purchases: direct labor. = total labor cost: overhead and selling and administrative. Not always driven by units or labor hours. No need to know how to prepare the numbers budget: cash budget. Excess or deficiency (+ or -) total financing. = ending balance (must meet at least minimum requirements) Remember to consider whether the dollars are coming in or going out. Also remember to change the variable costs and not the fixed total dollar amounts.

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Related Questions

Requirement 2:

The company has just hired a new marketing manager who insiststhat unit sales can be dramatically increased by dropping theselling price from $8 to $7. The marketing manager would like touse the following projections in the budget:

Check your worksheet by changing the budgeted unit sales inQuarter 2 of Year 2 in cell C5 to 75,000 units. The total expectedcash collections for the year should now be $2,085,000. If you donot get this answer, find the errors in your worksheet and correctthem.

Data Year 2 Quarter Year 3 Quarter
1 2 3 4 1 2
Budgeted unitsales 50,000 70,000 115,000 60,000 80,000 95,000
Selling price perunit $7 per unit

A

B

C

D

E

F

F
1 Chapter 9: Applying Excel
2
3 Data Year 2 Quarter Year 3 Quarter
4 1 2 3 4 1 2
5 Budgeted unit sales 50,000 70,000 115,000 60,000 80,000 95,000
6
7 • Selling price per unit $7 per unit
8 • Accounts receivable, beginning balance $65,000
9 • Sales collected in the quarter sales are made 75%
10 • Sales collected in the quarter after sales are made 25%
11 • Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter
12 • Finished goods inventory, beginning 12,000 units
13 • Raw materials required to produce one unit 5 pounds
14 • Desired ending inventory of raw materials is 10% of the next quarter's production needs
15 • Raw materials inventory, beginning 23,000 pounds
16 • Raw material costs $0.80 per pound
17 • Raw materials purchases are paid 60% in the quarter the purchases are made
18 and 40% in the quarter following purchase
19 • Accounts payable for raw materials, beginning balance $81,500
20

c. What is the total cost of raw materials to be purchased forthe year under this revised budget?

d. What are the total expected cash disbursements for rawmaterials for the year under this revised budget?

Here is what I got... but my answers are wrong... pleasehelp

Chapter 9: ApplyingExcel
Data Year 2 Quarter Year 3 Quarter
1 2 3 4 1 2
Budgeted unit sales 50,000 70,000 115,000 60,000 80,000 95,000
• Selling price per unit $7 per unit
• Accounts receivable, beginningbalance $65,000
• Sales collected in the quarter salesare made 75%
• Sales collected in the quarter aftersales are made 25%
• Desired ending finished goodsinventory is 30% of the budgeted unit sales of the next quarter
• Finished goods inventory,beginning 12,000 units
• Raw materials required to produce oneunit 5 pounds
• Desired ending inventory of rawmaterials is 10% of the next quarter's production needs
• Raw materials inventory,beginning 23,000 pounds
• Raw material costs $0.80 per pound
• Raw materials purchases are paid 60% in the quarter the purchases are made
and 40% in the quarter following purchase
• Accounts payable for raw materials,beginning balance $81,500
Enter a formula into eachof the cells marked with a ? below
Review Problem: Budget Schedules
Construct the sales budget Year 2 Quarter Year 3 Quarter
1 2 3 4 1 2
Budgeted unit sales 50,000 70,000 115,000 60,000 80,000 95,000
Selling price per unit $7 $7 $7 $7 $7 $7
Total sales $350,000 $490,000 $805,000 $420,000 $560,000 $665,000
Construct the schedule of expected cashcollections Year 2 Quarter
1 2 3 4 Year
Accounts receivable, beginningbalance $ 65,000 $ 65,000
First-quarter sales 262,500 $ 87,500 $ 350,000
Second-quarter sales 367,500 $ 122,500 $ 490,000
Third-quarter sales 603,750 $ 201,250 $ 805,000
Fourth-quarter sales 315,000 $ 315,000
Total cash collections $ 327,500 $ 455,000 $ 726,250 $ 516,250 $ 2,025,000
Construct the production budget Year 2 Quarter Year 3 Quarter
1 2 3 4 Year 1 2
Budgeted unit sales 50,000 70,000 115,000 60,000 295,000 80,000 95,000
Add desired finished goodsinventory 21,000 34,500 18,000 24,000 24,000 28,500
Total needs 71,000 104,500 133,000 84,000 319,000 108,500
Less beginning inventory 12,000 21,000 34,500 18,000 12,000 24,000
Required production 59,000 83,500 98,500 66,000 307,000 84,500
Construct the raw materials purchasesbudget Year 2 Quarter Year 3 Quarter
1 2 3 4 Year 1
Required production (units) 59,000 83,500 98,500 66,000 307,000 84,500
Raw materials required to produce oneunit 5 5 5 5 5 5
Production needs (pounds) 295,000 417,500 492,500 330,000 1,535,000 422,500
Add desired ending inventory of rawmaterials (pounds) 41,750 42,500 28,000 36,500 36,500
Total needs (pounds) 336,750 460,000 520,500 366,500 1,571,500
Less beginning inventory of rawmaterials (pounds) 23,000 41,750 42,500 28,000 23,000
Raw materials to be purchased 313,750 418,250 478,000 338,500 1,548,500
Cost of raw materials per pound $0.80 $0.80 $0.80 $0.80 $0.80
Cost of raw materials to bepurchased $251,000 $334,600 $382,400 $270,800 $1,238,800
Construct the schedule of expected cashpayments Year 2 Quarter
1 2 3 4 Year
Accounts payable, beginningbalance $ 81,500 $ 81,500
First-quarter purchases 150,600 $ 100,400 251,000
Second-quarter purchases 200,760 $ 133,840 $ 334,600
Third-quarter purchases 229,440 $ 152,960 382,400
Fourth-quarter purchases 162,480 $ 162,480
Total cash disbursements $ 232,100 $ 301,160 $ 363,280 $ 315,440 $ 1,211,980

Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfirst four months of operations:

a. The budgeted selling price per unit is $65. Budgeted unitsales for June, July, August, and September are 8,200, 12,000,14,000, and 15,000 units, respectively. All sales are oncredit.

b. Forty percent of credit sales are collected in the month ofthe sale and 60% in the following month.

c. The ending finished goods inventory equals 20% of thefollowing month’s unit sales.

d. The ending raw materials inventory equals 10% of thefollowing month’s raw materials production needs. Each unit offinished goods requires 5 pounds of raw materials. The rawmaterials cost $2.00 per pound.

e. Twenty percent of raw materials purchases are paid for in themonth of purchase and 80% in the following month.

f. The direct labor wage rate is $13 per hour. Each unit offinished goods requires two direct labor-hours.

g. The variable selling and administrative expense per unit soldis $1.30. The fixed selling and administrative expense per month is$62,000.

Required: 1. What are the budgeted sales for July?

2. What are the expected cash collections for July?

3. What is the accounts receivable balance at the end ofJuly?

4. According to the production budget, how many units should beproduced in July?

5. If 71,000 pounds of raw materials are needed to meetproduction in August, how many pounds of raw materials should bepurchased in July?

6. What is the estimated cost of raw materials purchases forJuly?

9. What is the estimated raw materials inventory balance (indollars) at the end of July?

10. What is the total estimated direct labor cost for Julyassuming the direct labor workforce is adjusted to match the hoursrequired to produce the forecasted number of units produced?

12. What is the estimated finished goods inventory balance atthe end of July, if the company always uses an estimatedpredetermined plantwide overhead rate of $8 per directlabor-hour?

14. What is the estimated total selling and administrativeexpense for July?

Crydon, Inc., manufactures an advanced swim fin for scubadivers. Management is now preparing detailed budgets for the thirdquarter, July through September, and has assembled the followinginformation to assist in preparing the budget:

a. The Marketing Department hasestimated sales as follows for the remainder of the year (in pairsof swim fins):
The selling price of the swimfins is $15 per pair.
July 5,200 October 3,200
August 6,200 November 2,200
September 4,200 December 2,200
b. All sales are on account. Basedon past experience, sales are expected to be collected in thefollowing pattern:
44% in the month ofsale
47% in the monthfollowing sale
9% uncollectible

The beginning accountsreceivable balance (excluding uncollectible amounts) on July 1 willbe $134,000.

c.

The company maintains finished goods inventories equal to 12% ofthe following month’s sales. The inventory of finished goods onJuly 1 will be 624 pairs.
d.

Each pair of swim fins requires 5 pounds of geico compound. Toprevent shortages, the company would like the inventory of geicocompound on hand at the end of each month to be equal to 20% of thefollowing month’s production needs. The inventory of geico compoundon hand on July 1 will be 5,320 pounds.
e.

Geico compound costs $3.00 per pound. Crydon pays for 59% of itspurchases in the month of purchase; the remainder is paid for inthe following month. The accounts payable balance for geicocompound purchases will be $11,100 on July 1.
Required:
1a.

Prepare a sales budget, by month and in total, for the thirdquarter.

July august september quarter

budgeted sales(pair)

Selling price per pair

total budgeted sales
1b.

Prepare a schedule of expected cash collections, by month and intotal, for the third quarter.

Accounts receivable, beginning balance

July sales

August sales

September sales

Total cash collections

2.

Prepare a production budget for each of the months July throughOctober.

July august september octomber

budgeted sales (pairs)

total needed

required productions


3a.

Prepare a direct materials budget for geico compound, by monthand in total, for the third quarter. (Do not roundintermediate calculations.)

July august september quarter

required production pairs

raw material needed per pair

productions needs

total needs

raw material to be purchased

cost of raw material to be pur
3b.

Prepare a schedule of expected cash disbursements for geicocompound, by month and in total, for the third quarter. (Donot round intermediate calculations.)

July ausust september quarter

accounts payable, beginning balance

july purchases

august purchases

september purchases

total cash disburments