ACCT 2000 Chapter : OCS 1005 HW 1
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The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:
a. Estimated sales for July by sales territory:
Maine: | |
Backyard Chef | 310 units at $700 per unit |
Master Chef | 150 units at $1,200 per unit |
Vermont: | |
Backyard Chef | 240 units at $750 per unit |
Master Chef | 110 units at $1,300 per unit |
New Hampshire: | |
Backyard Chef | 360 units at $750 per unit |
Master Chef | 180 units at $1,400 per unit |
b. Estimated inventories at July 1:
Direct materials: | |
Grates | 290 units |
Stainless steel | 1,500 lbs. |
Burner subassemblies | 170 units |
Shelves | 340 units |
Finished products: | |
Backyard Chef | 30 units |
Master Chef | 32 units |
c. Desired inventories at July 31:
Direct materials: | |
Grates | 340 units |
Stainless steel | 1,800 lbs. |
Burner subassemblies | 155 units |
Shelves | 315 units |
Finished products: | |
Backyard Chef | 40 units |
Master Chef | 22 units |
d. Direct materials used in production:
In manufacture of Backyard Chef: | |
Grates | 3 units per unit of product |
Stainless steel | 24 lbs. per unit of product |
Burner subassemblies | 2 units per unit of product |
Shelves | 4 units per unit of product |
In manufacture of Master Chef: | |
Grates | 6 units per unit of product |
Stainless steel | 42 lbs. per unit of product |
Burner subassemblies | 4 units per unit of product |
Shelves | 5 units per unit of product |
e. Anticipated purchase price for direct materials:
Grates | $15 per unit |
Stainless steel | $6 per lb. |
Burner subassemblies | 110 per unit |
Shelves | $10 per unit |
f. Direct labor requirements:
Backyard Chef: | |
Stamping Department | 0.50 hr. at $17 per hr. |
Forming Department | 0.60 hr. at $15 per hr. |
Assembly Department | 1.00 hr. at $14 per hr. |
Master Chef: | |
Stamping Department | 0.60 hr. at $17 per hr. |
Forming Department | 0.80 hr. at $15 per hr. |
Assembly Department | 1.50 hrs. at $14 per hr. |
Required:
1. Prepare a sales budget for July.
Gourmet Grill Company Sales Budget For the Month Ending July 31 | ||||
---|---|---|---|---|
Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales | |
Backyard Chef: | ||||
Maine | ||||
Vermont | ||||
New Hampshire | ||||
Total | ||||
Master Chef: | ||||
Maine | ||||
Vermont | ||||
New Hampshire | ||||
Total | ||||
Total revenue from sales |
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company Production Budget For the Month Ending July 31 | ||
---|---|---|
Units | ||
Backyard Chef | Master Chef | |
Expected units to be sold | ||
Desired inventory, July 31 | ||
Total units available | ||
Estimated inventory, July 1 | ||
Total units to be produced |
3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31 | |||||
---|---|---|---|---|---|
Grates (units) | Stainless Steel (lbs.) | Burner Sub- assemblies (units) | Shelves (units) | Total | |
Required units for production: | |||||
Backyard Chef | |||||
Master Chef | |||||
Desired inventory, July 31 | |||||
Total | |||||
Estimated inventory, July 1 | |||||
Total units to be purchased | |||||
Unit price | |||||
Total direct materials to be purchased |
4. Prepare a direct labor cost budget for July.
Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31 | ||||||||
---|---|---|---|---|---|---|---|---|
Stamping Department | Forming Department | Assembly Department | Total | |||||
Hours required for production: | ||||||||
Backyard Chef | ||||||||
Master Chef | ||||||||
Total | ||||||||
Hourly rate | ||||||||
Total direct labor cost |
I canât post each section as a question because I need to verifythe answers first before going on. I have parts of the answers butam very stuck and would appreciate some help. I know itâs very longbut I would greatly appreciate it!!
Quigley Corporationâs trial balance at December 31, 2017, ispresented below. All 2017 transactions have been recorded exceptfor the items described below.
Debit | Credit | |||
Cash | $27,500 | |||
Accounts Receivable | 59,000 | |||
Inventory | 23,400 | |||
Land | 64,700 | |||
Buildings | 93,600 | |||
Equipment | 33,000 | |||
Allowance for Doubtful Accounts | $430 | |||
Accumulated DepreciationâBuildings | 29,500 | |||
Accumulated DepreciationâEquipment | 13,400 | |||
Accounts Payable | 19,400 | |||
Interest Payable | â0â | |||
Dividends Payable | â0â | |||
Unearned Rent Revenue | 8,800 | |||
Bonds Payable (10%) | 44,000 | |||
Common Stock ($10 par) | 34,000 | |||
Paid-in Capital in Excess of ParâCommon Stock | 6,800 | |||
Preferred Stock ($20 par) | â0â | |||
Paid-in Capital in Excess of ParâPreferred Stock | â0â | |||
Retained Earnings | 73,870 | |||
Treasury Stock | â0â | |||
Cash Dividends | â0â | |||
Sales Revenue | 565,000 | |||
Rent Revenue | â0â | |||
Bad Debt Expense | â0â | |||
Interest Expense | â0â | |||
Cost of Goods Sold | 391,000 | |||
Depreciation Expense | â0â | |||
Other Operating Expenses | 38,600 | |||
Salaries and Wages Expense | 64,400 | |||
Total | $795,200 | $795,200 |
Unrecorded transactions and adjustments:
1. | On January 1, 2017, Quigley issued 1,000 shares of $20 par, 6%preferred stock for $21,000. | |
2. | On January 1, 2017, Quigley also issued 1,100 shares of commonstock for $26,400. | |
3. | Quigley reacquired 250 shares of its common stock on July 1,2017, for $46 per share. | |
4. | On December 31, 2017, Quigley declared the annual cash dividendon the preferred stock and a $1.30 per share dividend on theoutstanding common stock, all payable on January 15, 2018. | |
5. | Quigley estimates that uncollectible accounts receivable atyear-end is $5,900. | |
6. | The building is being depreciated using the straight-line methodover 30 years. The salvage value is $5,100. | |
7. | The equipment is being depreciated using the straight-linemethod over 10 years. The salvage value is $3,300. | |
8. | The unearned rent was collected on October 1, 2017. It wasreceipt of 4 monthsâ rent in advance (October 1, 2017 throughJanuary 31, 2018). | |
9. | The 10% bonds payable pay interest every January 1. The interestfor the 12 months ended December 31, 2017, has not been paid orrecorded. |
No. Account Titles andExplanation Debit Credit
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3. ____________________________
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5. ____________________________
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6. ____________________________
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7. ____________________________
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8. ____________________________
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9. ____________________________
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Prepare an updated December 31, 2017, trial balance, reflectingthe journal entries in part(a).
QUIGLEY CORPORATION
Trail Balance
For the Month Ended December 31, 2017For the Year Ended December31, 2017December 31, 2017
Debit Credit
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Prepare a multiple-step income statement for the year endingDecember 31, 2017.
Prepare a retained earnings statement for the year endingDecember 31, 2017.
Prepare a classified balance sheet as of December 31, 2017