Title: I have attached statement and questions which are required to answer. Kindly ans them asap
Post by: Navpreet_k on May 28, 2022
This question belongs to chapter 6 master budget and responsibility accounting . Kindly answer all questions asap
•UI Airtel 4G 11:26 PM rn-ca-central-1-prod-fleet01-xythos.content.blackboardcdn.com Tiny Toons was established on January 1, 2022 - capitalized though the issuance of common shares for $85,000. Tiny Toons produces miniature, plastic cartoon characters Their 2022 estimated sales are 50,000 units at $120 per unit. Tiny Toons desires an ending inventory of 5,000 units and there is no beginning inventory. 30% of sales are cash and 70% are credit card. The credit card charges a 3% service charge, with 80% of the credit card sales are collected in the current period and 20% in the following period. 90% of the raw material purchases are paid for during the period of purchase, 10% paid in the following period. Materials cost $100 per unit and Tiny Toons desires an ending inventory for raw materials of 25 units. It takes 0.05 units of raw materials to produce one miniature, plastic cartoon character. Direct Labour Costs are paid in the period incurred and are $20 per hour and it takes 1 and 1/2 hours to produce one unit. Manufacturing overhead is allocated based on direct labour hours at $30 per hour. Manufacturing equipment cost $35,000, salvage value $5,000, 5 year useful life All overhead costs (excluding depreciation) are paid in the period incurred as follows: Salary expense $150,000, Sales Commissions $175,000, Sales Supplies $25,000, Rent $75,000 and miscellaneous expenses of $5,000. They require a cash balance of $601,100 and to maintain this cash balance, a line of credit is available for 3% per annum. Note: All borrowings and repayments occur on the first day of the period.
REQUIRED: 1. Prepare a Sales Budget (3 marks) Production Budget (5 marks) 2. Prepare a 3. Prepare a Raw Materials Budget (10 marks) Direct Manufacturing Labour Budget (5 4. Prepare a marks) Manufacturing Overhead Budget (3 5. Prepare a marks) 6. Prepare a Cost of Goods Manufactured Budget and a unit cost (7 marks) 7. Prepared a Selling, General and Administrative Expenses Budget (6 marks) 8. Prepare a Proforma Income Statement (7 marks) 9. Prepare a Cash Receipts Schedule (4 marks) 10. Prepare a Credit Cards Proforma Data Schedule (3 marks) 11. Prepare a Cash Payments Budget (4 marks) 12. Prepare proforma data for accounts payable, raw material inventory and accumulated deprecation, Finished Goods Inventory December 31, 2022 and Cost of Goods Sold (5 marks) 13. Prepare a Cash Budget (21 marks) 14. Prepare a Proforma Balance Sheet (17 marks)
Title: Re: I have attached statement and questions which are required to answer. Kindly ans them asap
Post by: hectmuril on May 30, 2022
1) Sales budget: |
|
|
Year |
2022 |
|
units sold |
50000 |
|
Selling price per unit |
120 |
|
Sales $ |
6000000 |
|
Cash Sales |
1800000 |
|
Credit Card Sales |
4200000 |
|
Total Sales $ |
6000000 |
|
|
|
|
2) Production Budget: |
|
|
Year |
2022 |
|
Units sold |
50000 |
|
Add: ending inventory |
5000 |
|
Total Units produced |
55000 |
|
|
|
|
|
|
|
3) Raw Materials budget: |
|
|
Year |
2022 |
|
Units produced |
55000 |
|
Add: Ending RM |
25 |
|
RM to purchase |
55025 |
|
RM cost per unit |
100 |
|
RM purchase costs $ |
5502500 |
|
|
|
|
|
|
|
4) Direct Manufacturing Labour budget: |
|
|
Year |
2022 |
|
Units produced |
55000 |
|
DL hours per unit |
1.5 |
|
Dir Manuf. Labour Hours |
82500 |
|
DL hour rate |
20 |
|
Dir Manuf. Labour Costs $ |
1650000 |
|
|
|
|
|
|
|
5) Manufacturing Overhead budget: |
|
|
Year |
2022 |
|
Dir Manuf. Labour Hours |
82500 |
|
Manuf overhead hour rate |
30 |
|
Manuf Overhead costs $ |
2475000 |
|
|
|
|
|
|
|
6) Cost of Goods Manufactured: |
|
|
Budget and a unit cost: |
|
|
Year |
2022 |
|
Units produced |
55000 |
|
RM cost |
5500000 |
55000*100 |
DL cost |
1650000 |
55000*1.5*20 |
Manuf OH cost |
2475000 |
55000*1.5*30 |
Cost of Goods manufactured $ |
9625000 |
|
Units sold |
55000 |
|
Cost per unit $ |
175 |
|
|
|
|
|
|
|
7) Selling, Gen & Admin Expenses budget: |
|
|
Year |
2022 |
|
Depreciation |
6000 |
(35000-5000)/5 |
Salary |
150000 |
|
Sales commissions |
175000 |
|
Credit card charges |
100800 |
4200000*0.8*0.03 |
Sales supplies |
25000 |
|
Rent |
75000 |
|
Miscel exp |
5000 |
|
Total Sell, Gen & Admin exp. $ |
536800 |
|
|
|
|
|
|
|
8) Proforma Income Statement: |
|
|
Year |
2022 |
|
Sales |
6000000 |
50000*120 |
Less: COGS |
8750000 |
50000*175 |
Gross Profit |
-2750000 |
|
Less:Sell, Gen & Admin exp.: |
-536800 |
|
Net Income (Loss) |
-3286800 |
|
|
|
|
|
|
|
9) Cash Receipts Schedule : |
|
|
Year |
2022 |
|
Cash sales |
1800000 |
|
Credit Card Sales |
3259200 |
4200000*0.8*0.97 |
Total Cash Receipts |
5059200 |
|
|
|
|
|
|
|
10) Credit Cards Proforma Data Schedule |
|
|
Year |
2022 |
|
Credit Card Sales |
4200000 |
|
Cash received of Credit Card Sales |
3259200 |
|
Credit card charges |
100800 |
4200000*0.8*0.03 |
Credit Card Sales receivable |
840000 |
4200000*0.2 |
|
|
|
|
|
|
11) Cash Payments Budget: |
|
|
RM purchase costs $ |
5502500 |
|
Payments to suppliers |
4952250 |
5502500*90% |
Dir Manuf. Labour Costs $ |
1650000 |
|
Manuf Overhead costs $ |
2475000 |
|
Salary |
150000 |
|
Sales commissions |
175000 |
|
Sales supplies |
25000 |
|
Rent |
75000 |
|
Miscel exp |
5000 |
|
Total Cash Payments |
9507250 |
|
|
|
|
|
|
|
12) Proforma data : |
|
|
Accounts Payable |
550250 |
5502500*10% |
Raw Material Inventory |
2500 |
25*100 |
Acc Depreciation |
6000 |
(35000-5000)/5 |
Finished Goods Inventory |
875000 |
5000*175 |
Cost of Goods sold |
8750000 |
50000*175 |
|
|
|
|
|
|
13) Cash Budget |
|
|
|
|
|
Opening Cash ( of share issuance) |
85000 |
|
Add: collections |
5059200 |
|
Total Cash available |
5144200 |
|
Less: Disbursements: |
|
|
Operating Cash payments |
9507250 |
|
Manuf. Equipment purchase |
35000 |
|
Total disbursements |
9542250 |
|
Cash over disbursements |
-4398050 |
|
Financing: |
|
|
Borrowings |
4999150 |
|
Repayments |
|
|
interest |
|
|
Net Financing |
|
|
Closing Cash |
601100 |
|
|
|
|
|
|
|
14) Proforma Balance Sheet |
|
|
|
|
|
Assets: |
Amount |
|
Cash |
601100 |
|
Accounts Receivable |
840000 |
|
Inventory: |
|
|
Finished Goods |
875000 |
5000*175 |
Raw materials |
2500 |
|
Manuf Equipment |
35000 |
|
Less: Acc Depreciation |
-6000 |
|
total Assets |
2347600 |
|
|
|
|
Liabilities & Share Capital: |
Amount |
|
Accounts Payable |
550250 |
|
Borrowings |
4999150 |
|
Total Liabilities |
5549400 |
|
Share capital |
85000 |
|
Retained Earnings |
-3286800 |
|
total Liabilities & Share Capital |
2347600 |
|
|