× Didn't find what you were looking for? Ask a question
  
  
Top Posters
Since Sunday
15
14
9
i
5
j
5
a
4
m
4
p
4
e
4
s
4
1
4
j
4
New Topic  
Navpreet_k Navpreet_k
wrote...
Posts: 12
Rep: 0 0
A month ago
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)
Attached file(s)
Thumbnail(s):
You must login or register to gain access to these attachments.
Read 64 times
2 Replies

Related Topics

Replies
wrote...
A month ago
Thx
wrote...
A month ago
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
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  76 People Browsing
 171 Signed Up Today
Related Images
 771
 218
 69
Your Opinion

Previous poll results: Who's your favorite biologist?