Wiley Ch. 9 Acct

A corporation's December 31, 2014, balance sheet shows Common Stock of $1,000,000 and Retained Earnings of $300,000. During 2015, the company's cash budget projects sale of additional stock for $700,000 and dividends of $20,000. The budgeted income statement for the year ending December 31, 2015, shows net income of $50,000. Calculate the total stockholders' equity on the budgeted balance sheet at December 31, 2015.

$2,030,000 Ending retained earnings = Beginning retained earnings + Net income - Dividends = $300,000 + $50,000 - $20,000 = $330,000. Common stock of $1,000,000 + $700,000 = Total common stock of $1,700,000. Total stockholders' equity = Common stock + Retained earnings = $1,700,000 + $330,000 = $2,030,000.

Valdez Incorporated has the following production cost information for garden hoses: DM (5lbs) $1.14/unit DL (.8hrs) $12/unit Overhead (.8hrs) $9/unit If Valdez plans to make and sell 10,000 garden hoses in the next quarter, what amount would they budget for cost of goods sold in the budgeted income statement?

$225,000

Aspen Firs had an Accounts Receivable balance of $21,500 on its December 31, 2014, balance sheet, which were collected in 20x5. Cash receipts for 20x5 show uncollected credit sales of $25,000 at the end of 2015. Aspen is also budgeting $1,000,000 of credit sales in 2015. What was the Accounts Receivable balance on the December 31, 2015, budgeted balance sheet?

$25,000

LDM Co. is preparing its direct labor budget. For the current month, the company has budgeted to sell 40,400 units and will produce 90% of those units during the month. LDM's total budgeted amount for direct labor is $1,924,171.20, and each unit requires 4.2 hours. What is the budgeted amount per direct labor hour?

$299,462

BB Services performs infant care for high-risk babies. The firm has computed its total direct labor cost for the next quarter to be $27,750. The firm expects two different types of clients during the coming quarter. The Home clients will require 3.4 hours per service and Hospital clients will require 10.55 hours per service. The firm expects 210 Home clients and 20 Hospital clients. What is the firm's direct labor cost per hour?

$30

LDM Co. is preparing its direct labor budget. For the current month, the company has budgeted to sell 40,400 units and will produce 90% of those units during the month. LDM's total budgeted amount for direct labor is $1,924,171.20, and each unit requires 4.2 hours. What is the budgeted amount per direct labor hour?

$12.60

S&S Cycle Shop is preparing its budgeted financial statements for 20x5. The budgeted income statement shows a net loss of $9,862. Total assets on the budgeted balance sheet are $864,398. Current liabilities are $75,678. Beginning retained earnings are $577,533. S&S paid no dividends. Calculate the retained earnings balance at December 31, 20x5.

$567,671

Toledo Manufacturing has the following variable overhead costs: Indirect materials: $2.18/hour Indirect labor: $3.26/hour Utilities: $0.90/hour Maintenance: $0.33/hour Direct labor hours: 14,500 If Toledo decides that they need to increase their indirect materials to $2.25 per hour, how much will this increase their total variable costs?

1,015

Jasper Coils manufactures components for electrical transformers. An average transformer requires 45 yards of copper wire. Jasper plans to manufacture 240 transformers this month and 250 transformers next month. The company requires ending inventory equal to 10% of the next month's production. How many yards of wire does it need to purchase this month?

10,845

In the Progressa Company required production for June is 44,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 100,000 and 110,000 pounds, respectively. How many pounds of direct material Z must be purchased?

142,000

The Brenneman Company's direct materials budget shows total cost of direct materials purchases for January $125,000, February $150,000 and March $175,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are

165,000

A wedding planning service estimates that it will plan two small weddings, six medium weddings, and three large weddings each month. Each small wedding takes 100 hours to plan, each medium wedding takes 250 hours to plan, and each large wedding takes 400 hours to plan. How many total direct labor hours will the company need to budget for each month?

2,900

Quality Foods has budgeted $1,500,000 in sales of ginger chicken for May. It wants to end every month with inventory equal to 10 days' worth of the next month's sales (based on a 30-day month). April sales are projected at $1,400,000. The sales price is $5 per box. Inventory at the beginning of April is estimated at 93,400 boxes of ginger chicken. How many boxes of ginger chicken Quality Foods should manufacture in April?

286,600

Katie's Cleaning Service has cleaning contracts for 15 apartments, 45 family homes, and 25 office buildings. She estimates that an apartment takes 4 hours to clean, a home takes 6 hours to clean, and an office building takes 10 hours to clean. Katie pays her cleaning staff $12.50/hour. If each location is cleaned once per week, how much does Katie need to budget for direct labor each month? Assume there are four weeks per month.

29,000

Dobbins Resources pays sales commissions of $2 per unit and shipping costs of $0.75 per unit. If Dobbins expects to sell 12,000 units in the third quarter, what will their total variable expenses be?

33,000

________ is/are shown on the _____________.

Advertising expense; selling and administrative expense budget

The company that is most likely to use a budget committee when developing a company-wide budget is

Bruner Electronics, an international electronics manufacturer.

On September 1, 2015, Barclay Spa borrowed $500,000 to renovate the massage therapy area of the facility. The terms of the loan were 6% annually over 10 years. Determine how the interest would appear on Barclay's budgeted balance sheet at December 31, 2015.

Interest Payable - $10,000

Madeline is calculating how many goods the company needs to purchase to support its expected sales. Jake is calculating how many goods the company needs to make to support its expected sales. What is the difference between Madeline and Jake?

Madeline is developing a merchandise purchases budget, whereas Jake is developing a production budget.

Budgets are more closely associated with the management function of

Planning

Ellen is a manager who helps develop sales promotions, targets customers for upselling, and searches for potential new customers. Which of the following budgets would Ellen MOST likely help develop?

Sales Budget

City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations?

at least $1,288,000

Coordinating the preparation of the budget is the responsibility assigned to the

budget committee.

In order to assure better management acceptance, the flow of input data for budgeting should begin with the

lower levels of management.

A purchases budget is used instead of a production budget by

merchandising companies

Techgear, Inc., manufactures specialty suits for triathletes. For the month of January, it projects the following selling and administrative expenses: sales commissions, 4% of sales; shipping expense, $4,500; advertising and marketing costs payable next month, $12,000; electric and water utilities, $750; corporate office depreciation for computers, $8,800; bad debt expense, $8,000. Sales for the month of January equal $400,000. What is the total of cash expenditures that will be reported on the cash budget?

21,250

Rose Company is preparing its direct labor budget for May. Projections for the month are that 8,350 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $9, what is the total budgeted direct labor cost for May?

225,450

On January 1, Scarlett Company has a beginning cash balance of $21,000. During the year, the company expects cash disbursements of $170,000 and cash receipts of $145,000. If Scarlett requires an ending cash balance of $20,000, the Scarlett Company must borrow:

24,000

The ________ is derived from the _________.

sales budget, sales forecast

Which of the following represents the flow of budget data under participative budgeting?

Department Manager to Plant Manager to Vice President of Production

Techgear, Inc., manufactures specialty suits for triathletes. For the month of January, it projects the following selling and administrative expenses: sales commissions, 4% of sales; shipping expense, $4,500; advertising and marketing costs payable next month, $12,000; electric and water utilities, $750; corporate office depreciation for computers, $8,800; bad debt expense, $8,000. Sales for the month of January equal $400,000. What is the total of expenses that will be reported on the budgeted income statement?

$50,050

When they made their master budget, Vann Enterprises had direct material per unit costs of $12.43, direct labor per unit costs of $8.46, and manufacturing overhead per unit costs of $14.29. They planned to sell 16,000 units in the first quarter. However, in the first week of the first quarter, the direct material per unit costs rose to $16.12, which increased the selling price of the finished product. Therefore, Vann Enterprises only sold 15,500 units. What would the difference in cost of goods sold be between the budgeted income statement and the actual income statement?

39,605 increase

James Company determines that 13,500 pounds of direct materials are needed for production in July. There are 800 pounds of direct materials on hand at July 1 and the desired ending inventory is 700 pounds. If the cost per pound of direct materials is $3, what is the budgeted total cost of direct materials purchases?

40,200

The Crawford Company has 3,000 units in beginning finished goods. The sales budget shows expected sales to be 12,000 units. If the production budget shows that 14,000 units are required for production, what was the desired ending finished goods?

5,000

The Eccleston Company has the following budgeted sales: January $40,000, February $60,000, and March $50,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are

53,000

The Burlington Company has 12,000 units in beginning finished goods. If sales are expected to be 60,000 units for the year and Burlington desires ending finished goods of 15,000 units, how many units must Burlington produce?

63,000