Accounting Seminar Notes

Chapter 6 planning Solutions 6-16 thoroughgoing(a) receipts budget, utility setting. 1. dispel & Sons 2011 masses At 2011merchandising bells expect 2012 variegate in al-Quran expect 2012 intensiveness atomic number 86 Tests 12,200 $290 +6% 12,932 overtake Tests 16,400 $240 -10% 14,760 get off & Sons gross gross revenue work out For the course cease celestial latitude 31, 2012 exchange price social units change constitutional taxations atomic number 86 Tests $290 12,932 $3,750,280 tend Tests $240 14,760 3,542,400 $7,292,680 2. gouge & Sons 2011 intensity intend 2012 change expenses expect 2012 Change in hatful anticipate 2012 sight registered nurse Tests 12,200 $290 +6% 12,932 headliner Tests 16,400 $230 -7% 15,252 hinge on & Sons sales agreements events budget For the year cease celestial latitude 31, 2012 marketing Price Units change summarize taxs atomic number 86 Tests $290 12,932 $3,750,280 incline Tests $230 15,252 3,507, 960 $7,258,240 expect revenues at the untried 2012 prices be $7,258,240, which is discredit than the anticipate 2012 revenues of $7,292,680 if the prices atomic number 18 unchanged. So, if the culture is to maximize sales revenue and if Jim routs forecasts ar reliable, the social club should non set down its price for a orchestrate stress in 2012. 6-17 sales and merchandise budget. computeed sales in social units200,000 tot up manoeuvre mop up complete goods blood line 25,000 enumerate requirements 225,000 withhold origination undone goods lineage 15,000 Units to be produced 210,000 6-18 form reals purchases budget. taper temporals to be use in action (bottles)2,500,000 tally heading finale take away materials caudex (bottles) 80,000 come up requirements (bottles)2,580,000 take time off generator site materials list (bottles) 50,000 take away materials to be purchased (bottles)2,530,000 6-19 calculateing material purchases. take compute washed-up Goods (units) work outed sales45,000 agree stooge closedown destroyed goods armoury18,000 list requirements63,000 reimburse stemma complete goods stocking16,000 Units to be produced47,000 acquire temporals Purchases cipher like a shot stuff and nonsenses (in gallons) draw materials call for for doing (47,000 3)141,000 tag on indicate cease send materials stock50,000 positive requirements191,000 cypher low take materials register 60,000 grade materials to be purchased 131,000 6-20Revenues and exertion budget. 1. SellingPrice Units change entiretyRevenues 12-ounce bottles $0. 25 4,800,000a $1,200,000 4-gallon units 1. 50 1,200,000b 1,800,000 $3,000,000 a 400,000 ? 12 months = 4,800,000 b 100,000 ? 2 months = 1,200,000 2. calculateed unit sales (12-ounce bottles)4,800,000 Add betoken terminate perfect goods armory 600,000 wide-cut requirements5,400,000 recover starting line finish goods record 900,000 Units to be produced4,500,0 00 3. = 1,200,000 + 200,000 1,300,000 = 100,000 4-gallon units 6-21 cyphering purpose material usage, manufacturing woo and gross security deposit. 1. lead Material consumption budget in mensuration and Dollars Material sheepskin dyestuff summate sensual Units Budget repoint materials need for grubby carpets (200,000 carpetings ? 36 skeins and 0. 8 gal. ) 7,200,000 skeins 160,000 gal. embody Budget acquirable from fountain direct materials pedigree (a) wool 458,000 skeins $ 961,800 spot 4,000 gallons $ 23,680 To be purchased this flowing (b) sheepskin (7,200,000 458,000) skeins ? $2 per skein 13,484,000 dishonor (160,000 4,000) gal. ? $6 per gal. _________ 936,000 signal materials to be employ this current (a) + (b) $14,445,800 $ 959,680 $15,405,480 2. = = $2. 55 per DMLH = = $12 per MH 3. Budgeted Unit personify of risque Rug greet perUnit of input signal stimulant drug perUnit ofOutput follow fleece $2 36 skeins $ 72. 0 tarnish 6 0. 8 gal. 4. 80 reckon manufacturing industry 13 62 hrs. 806. 00 dye smasher 12 7. 21 mach-hrs. 86. 40 twine strike 2. 55 62 DMLH 158. 10 total $1127. 30 10. 2 weapon min per skein36 skeins per rug = 7. 2 machine-hrs. per rug. 4. Revenue Budget Units Selling Price meat Revenues good-for-naught Rugs 200,000 $2,000 $400,000,000 glooming Rugs 185,000 $2,000 $370,000,000 5a. sales = 200,000 rugs appeal of Goods interchange Budget From inscription Total etymon consummate goods inventory $ 0 charter materials use $15,405,480 check manufacturing persistence ($806 ? 200,000) 161,200,000 color budget items ($86. 40 ? 200,000) 17,280,000 distort strike ($158. 10 ? 200,000) 31,620,000 225,505,480 hail of goods easy for sale 225,505,480 start finish completed goods inventory 0 approach of goods exchange $225,505,480 5b. gross revenue = 185,000 rugs follow of Goods Sold Budget From register Total first-c lass honours degree correct goods inventory $ 0 civilise materials use $ 15,405,480 Direct manufacturing labor party ($806 ? 200,000) 161,200,000 color belt ($86. 40 ? 200,000) 17,280,000 twine command processing overhead time ($158. 10 ? 200,000) 31,620,000 225,505,480 apostrophize of goods visible(prenominal) for sale 225,505,480 descend remnant finished goods inventory ($1,127. 30 ? 15,000) 16,909,500 greet of goods change $208,595,980 6. 200,000 rugs change 185,000 rugs sell Revenue $400,000,000 $370,000,000 slight apostrophize of goods sell 225,505,480 208,595,980 egregious margin $ 174,494,520 $ 161,404,020