Exam 6: Master Budget and Responsibility Accounting

Answer the following question(s)using the information below.Fiscal Company has the following sales budget for the last six months of 2018: Historically, the cash collection of sales has been as follows: -What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the third month following the sale?

Russell Company has the following projected account balances for June 30, 2019: Required: a.Prepare a budgeted income statement for June 2019 b.Prepare a budgeted balance sheet as of June 30, 2019

Use the information below to answer the following question(s).Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2018.The company has enough beginning inventory of direct materials to produce 8,000 units.Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard. -What will be Fair Score Company's budgeted total cost of direct materials used in 2018?

Lubriderm Corporation has the following budgeted sales for the next six-month period: There were 30,000 units of finished goods in inventory at the beginning of June.Plans are to have an inventory of finished products that equal 20 percent of the unit sales for the next month.Five kilograms of materials are required for each unit produced.Each kilogram of material costs $8.Inventory levels for materials are equal to 30 percent of the needs for the next month.Materials inventory on June 1 was 15,000 kilograms.Required: a.Prepare production budgets in units for July, August, and September. b.Prepare a purchases budget in kilograms for July, August, and September, and give total purchases in both kilograms and dollars for each month.

A production budget expressed in units is equal to

Mannock Company budgeted $400,000 for employee training, but actually spent only $300,000.Which of the following statements is the best course of action for management to take in this instance?

Use the information below to answer the following question(s).Layne Cedar manufactures cedar chests.The estimated number of chests for the first three months of 2019 is as follows: Finished goods inventory at the end of December is 3,000 units.Ending finished goods are equal to 30 percent of next month's sales.April 2019 sales are expected to total 16,000 units. -How many chests should be budgeted to be produced in the first quarter of 2019?

Use the information below to answer the following question(s).Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019: -On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

A controllable cost is a cost that is not subject to the influence of a given manager of a given responsibility centre for a given time span.

Direct material purchases equal

Answer the following question(s)using the information below.Furniture Inc.estimates the following number of mattress sales for the first four months of 2019: Finished goods inventory at the end of December 2018 is 1,500 units.Target ending finished goods inventory is 30% of the next month's sales. -How many mattresses need to be produced in the first quarter (January, February, March)of 2019?

The budget constraint describes only financial limitations that are within the company's control.

Use the information below to answer the following question(s).Berry's Boxes manufactures boxes.It expects to sell 20,000 boxes in 2018.The company had enough beginning inventory of direct materials to produce 24,000 units.Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units.The boxes sell for $3.00 and the company keeps no work-in-process inventory.Direct materials costs for each box total $1.00 while direct labour is $0.50.Factory overhead is $0.20 per box. -What will be Berry's Boxes budgeted revenue?

Performance reports for responsibility centres may include uncontrollable costs if they are segregated from controllable costs.

Use the information below to answer the following question(s).Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2018.The company has enough beginning inventory of direct materials to produce 8,000 units.Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard. -How many scoreboards should Fair Score Company produce in 2018?

Use the information below to answer the following question(s).Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019: -What are the 2019 budgeted costs for direct manufacturing labour?

In a profit centre the manager is responsible for investments, revenues and expenses.

Use the information below to answer the following question(s).Berry's Boxes manufactures boxes.It expects to sell 20,000 boxes in 2018.The company had enough beginning inventory of direct materials to produce 24,000 units.Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units.The boxes sell for $3.00 and the company keeps no work-in-process inventory.Direct materials costs for each box total $1.00 while direct labour is $0.50.Factory overhead is $0.20 per box. -What will be Berry's Boxes cost of goods sold in 2018?

Use the information below to answer the following question(s).Grinnell Manufacturing Company has the following information for 2020: Budget Expenses per Month Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2019 sales were $110,000. -What are the expected total cash receipts for February?

Use the information below to answer the following question(s).Layne Cedar manufactures cedar chests.The estimated number of chests for the first three months of 2019 is as follows: Finished goods inventory at the end of December is 3,000 units.Ending finished goods are equal to 30 percent of next month's sales.April 2019 sales are expected to total 16,000 units. -What should be the budgeted number of chests produced in January 2019?