acct ch 8-9 bonus practice

The Tide Company has budgeted sales for the year 2021 as follows: Quarter 1 2 3 4 1st qtr 2007 Sales in units 10,000 12,000 14,000 16,000 15,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Ending inventory for 2006 should be:

The sales for the first quarter of 2007 are given as 15,000 units. Ending inventory for 2006 = 25% of the first quarter 2007 sales Ending inventory for 2006 = 0.25 * 15,000 Ending inventory for 2006 = 3,750 units So, the ending inventory for 2006 should be 3,750 units.

Use the following information to answer questions 1-3: January February March April Cash Sales $40,000 $35,000 $25,000 $30,000 Credit Sales $120,000 $110,000 $90,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale.What is the balance of accounts receivable on April 30?

. Credit Sales in January: - Total credit sales = $120,000 - Collected in January (20%) = 0.2 * $120,000 = $24,000 - Collected in February (70%) = 0.7 * $120,000 = $84,000 - Remaining uncollected by April 30 (10%) = 0.1 * $120,000 = $12,000 2. Credit Sales in February: - Total credit sales = $110,000 - Collected in February (20%) = 0.2 * $110,000 = $22,000 - Collected in March (70%) = 0.7 * $110,000 = $77,000 - Remaining uncollected by April 30 (10%) = 0.1 * $110,000 = $11,000 3. Credit Sales in March: - Total credit sales = $90,000 - Collected in March (20%) = 0.2 * $90,000 = $18,000 - Collected in April (70%) = 0.7 * $90,000 = $63,000 - Remaining uncollected by April 30 (10%) = 0.1 * $90,000 = $9,000 4. Credit Sales in April: - Total credit sales = $100,000 - Collected in April (20%) = 0.2 * $100,000 = $20,000 - Remaining uncollected by April 30 (80%) = 0.8 * $100,000 = $80,000 Now, add up the uncollected amounts from each month to find the total accounts receivable balance on April 30: Uncollected from January = $12,000 Uncollected from February = $11,000 Uncollected from March = $9,000 Uncollected from April = $80,000 Total accounts receivable on April 30 = $12,000 + $11,000 + $9,000 + $80,000 = $112,000

Use the following information to answer questions 1-3: January February March April Cash Sales $40,000 $35,000 $25,000 $30,000 Credit Sales $120,000 $110,000 $90,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale. What are the cash collections for March?

1. Cash Sales in March: - Cash sales = $25,000 2. 20% of March Credit Sales: - 20% of $90,000 = 0.2 * $90,000 = $18,000 3. 70% of February Credit Sales: - 70% of $110,000 = 0.7 * $110,000 = $77,000 4. 10% of January Credit Sales: - 10% of $120,000 = 0.1 * $120,000 = $12,000 Now, let's add all these amounts to find the total cash collections for March: $25,000 (cash sales) + $18,000 (20% of March credit sales) + $77,000 (70% of February credit sales) + $12,000 (10% of January credit sales) Total cash collections for March = $25,000 + $18,000 + $77,000 + $12,000 = $132,000

Use the following information to answer questions 1-3: January February March April Cash Sales $40,000 $35,000 $25,000 $30,000 Credit Sales $120,000 $110,000 $90,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale. What is the balance of accounts receivable on March 31?

1. January Credit Sales: - 20% collected in January: 0.2 * $120,000 = $24,000 - 70% collected in February: 0.7 * $120,000 = $84,000 - 10% collected in March: 0.1 * $120,000 = $12,000 2. February Credit Sales: - 20% collected in February: 0.2 * $110,000 = $22,000 - 70% collected in March: 0.7 * $110,000 = $77,000 - 10% collected in April: 0.1 * $110,000 = $11,000 3. March Credit Sales: - 20% collected in March: 0.2 * $90,000 = $18,000 - 70% collected in April: 0.7 * $90,000 = $63,000 - 10% collected in May: 0.1 * $90,000 = $9,000 Now, let's calculate the accounts receivable balance on March 31: - From January: 10% of January credit sales (collected in March) = $12,000 - From February: 70% of February credit sales (collected in March) = $77,000 - From March: 80% of March credit sales (collected later) = 0.8 * $90,000 = $72,000 Adding these up: $12,000 (January) + $77,000 (February) + $72,000 (March) So, the balance of accounts receivable on March 31 is: $12,000 + $77,000 + $72,000 = $161,000 Considering the collections due in March: - $12,000 (from January) - $77,000 (from February) The correct balance of accounts receivable on March 31 should be the total of amounts not yet collected: $72,000 (March, not yet collected)

Bridgeware Company has a materials price standard of $6.00 per pound. Two thousand pounds of materials were purchased at $6.60 a pound. The actual quantity of materials used was 1,600 pounds, although the standard quantity allowed for the output was 1,800 pounds. Bridgeware Company's materials price variance is?

Determine the actual cost of materials purchased: - Actual quantity of materials purchased = 2,000 pounds - Actual price per pound = $6.60 - Actual cost = 2,000 pounds * $6.60 per pound = $13,200 2. Calculate the standard cost for the materials purchased: - Standard price per pound = $6.00 - Standard cost for 2,000 pounds = 2,000 pounds * $6.00 per pound = $12,000 3. Calculate the materials price variance: - Materials price variance = Actual cost - Standard cost - Materials price variance = $13,200 - $12,000 - Materials price variance = $1,200 Since the actual cost is higher than the standard cost, the materials price variance is unfavorable. So, Bridgeware Company's materials price variance was $1,200 unfavorable

Cola Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor price variance was?

Determine the actual labor cost: - Actual labor hours used = 4,200 hours - Actual labor rate = $24.40 per hour - Actual labor cost = 4,200 hours * $24.40 per hour = $102,480 2. Calculate the standard labor cost for the actual hours worked: - Standard labor rate = $24.00 per hour - Standard labor cost for 4,200 hours = 4,200 hours * $24.00 per hour = $100,800 3. Calculate the labor price variance: - Labor price variance = Actual labor cost - Standard labor cost - Labor price variance = $102,480 - $100,800 - Labor price variance = $1,680 Since the actual cost is higher than the standard cost, the labor price variance is unfavorable. So, the labor price variance was $1,680 unfavorable.

Bridgeware Company has a materials price standard of $6.00 per pound. Two thousand pounds of materials were purchased at $6.60 a pound. The actual quantity of materials used was 1,600 pounds, although the standard quantity allowed for the output was 1,800 pounds. Bridgeware Company's materials quantity variance is?

Determine the standard cost for the actual quantity used: - Standard quantity allowed for output = 1,800 pounds - Standard price per pound = $6.00 - Standard cost for 1,800 pounds = 1,800 pounds * $6.00 per pound = $10,800 2. Calculate the standard cost for the actual quantity used: - Actual quantity used = 1,600 pounds - Standard price per pound = $6.00 - Standard cost for 1,600 pounds = 1,600 pounds * $6.00 per pound = $9,600 3. Calculate the materials quantity variance: - Materials quantity variance = Standard cost for allowed quantity - Standard cost for actual quantity used - Materials quantity variance = $10,800 - $9,600 - Materials quantity variance = $1,200 Since the standard cost for the allowed quantity is higher than the standard cost for the actual quantity used, the materials quantity variance is favorable. So, Bridgeware Company's materials quantity variance was $1,200 favorable.

Cola Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor quantity variance was?

Determine the standard labor hours for actual production: - Standard labor hours per unit = 2 hours - Actual production units = 2,000 units - Standard labor hours for 2,000 units = 2 hours/unit * 2,000 units = 4,000 hours 2. Find the actual labor hours used: - Actual labor hours used = 4,200 hours 3. Calculate the labor quantity variance: - Labor quantity variance = (Standard labor hours - Actual labor hours) * Standard labor rate - Standard labor rate = $24.00 per hour - Labor quantity variance = (4,000 hours - 4,200 hours) * $24.00 per hour - Labor quantity variance = -200 hours * $24.00 per hour - Labor quantity variance = -$4,800 So, the labor quantity variance was -$4,800. U

The Tide Company has budgeted sales for the year 2021 as follows: Quarter 1 2 3 4 1st qtr 2007 Sales in units 10,000 12,000 14,000 16,000 15,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Scheduled purchases of raw materials for the second quarter should be:

Ending inventory for Q1 = 25% of Q2 sales = 0.25 * 12,000 = 3,000 units - Ending inventory for Q2 = 25% of Q3 sales = 0.25 * 14,000 = 3,500 units - Ending inventory for Q3 = 25% of Q4 sales = 0.25 * 16,000 = 4,000 units - Ending inventory for Q4 = 25% of Q1 2007 sales = 0.25 * 15,000 = 3,750 units 2. Calculate the required production for each quarter: - Production for Q1 = Q1 sales + Q1 ending inventory - beginning inventory - Production for Q1 = 10,000 + 3,000 - 2,500 = 10,500 units - Production for Q2 = Q2 sales + Q2 ending inventory - Q1 ending inventory - Production for Q2 = 12,000 + 3,500 - 3,000 = 12,500 units - Production for Q3 = Q3 sales + Q3 ending inventory - Q2 ending inventory - Production for Q3 = 14,000 + 4,000 - 3,500 = 14,500 units - Production for Q4 = Q4 sales + Q4 ending inventory - Q3 ending inventory - Production for Q4 = 16,000 + 3,750 - 4,000 = 15,750 units 3. Calculate the raw materials needed for production: - Raw materials needed for Q2 production = 12,500 units * 4 pounds/unit = 50,000 pounds 4. Determine the required ending inventory of raw materials for Q2: - Ending inventory for Q2 = 10% of Q3 production needs - Q3 production needs = 14,500 units * 4 pounds/unit = 58,000 pounds - Ending inventory for Q2 = 0.10 * 58,000 = 5,800 pounds 5. Determine the beginning inventory of raw materials for Q2: - Beginning inventory for Q2 = Ending inventory of Q1 - Q1 production needs = 10,500 units * 4 pounds/unit = 42,000 pounds - Ending inventory for Q1 = 0.10 * 50,000 = 5,000 pounds 6. Calculate the raw materials purchases for Q2: - Raw materials purchases for Q2 = Raw materials needed for Q2 production + Ending inventory for Q2 - Beginning inventory for Q2 - Raw materials purchases for Q2 = 50,000 + 5,800 - 5,000 = 50,800 pounds

The Tide Company has budgeted sales for the year 2021 as follows: Quarter 1 2 3 4 1st qtr 2007 Sales in units 10,000 12,000 14,000 16,000 15,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Scheduled production for the third quarter should be:

Ending inventory for Q1 = 25% of Q2 sales = 0.25 * 12,000 = 3,000 units - Ending inventory for Q2 = 25% of Q3 sales = 0.25 * 14,000 = 3,500 units - Ending inventory for Q3 = 25% of Q4 sales = 0.25 * 16,000 = 4,000 units - Ending inventory for Q4 = 25% of Q1 2022 sales = 0.25 * 15,000 = 3,750 units 2. Calculate the required production for each quarter: - Production for Q1 = Q1 sales + Q1 ending inventory - beginning inventory - Production for Q1 = 10,000 + 3,000 - 2,500 = 10,500 units - Production for Q2 = Q2 sales + Q2 ending inventory - Q1 ending inventory - Production for Q2 = 12,000 + 3,500 - 3,000 = 12,500 units - Production for Q3 = Q3 sales + Q3 ending inventory - Q2 ending inventory - Production for Q3 = 14,000 + 4,000 - 3,500 = 14,500 units - Production for Q4 = Q4 sales + Q4 ending inventory - Q3 ending inventory - Production for Q4 = 16,000 + 3,750 - 4,000 = 15,750 units So, the scheduled production for the third quarter should be 14,500 units.