Last Updated 03 Sep 2020

Balance Sheet and Following Account Balances

Category Balance Sheet, Money
Words 406 (2 pages)
Views 7

Retained earnings 109,oho 712,000 712. 000 b. Actual sales for December and budgeted sales for the next four months are as follows:

  • December (actual) 2800 units It is expected that sales will increase by 40% in the month of January and by a further 50% in the next month. The following month sales would drop by 50% an d then will will ream remain in cons Tanta for for the next next 2 moon months this
  • Order custom essay Balance Sheet and Following Account Balances with free plagiarism report

    GET ORIGINAL PAPER
  • The management will not alter the selling price, which is currently $100
  • Management wants finished goods inventory to be 20% of the following month's sales
  • One units of finished goods require 2 kilos of raw materials.
  • The price of materials is currently $10 per kilo and is expected to increase by 50% in February hereafter it will remain constant for the next four months.
  • The management wants raw materials inventory to be 10% of the following month's p reduction needs
  • Each unit of product requires 2 hours of direct materials for completion.
  • The laborers are expected to work for a total of 4000 hours per month at a wage rat e Of $6 per hour. Any additional work requires an overtime payment of time and a half.
  • Manufacturing overhead: variable: $5 per labor hours worked; fixed $17000 per MO nth.
  • Sales are 20% for cash and 80% on credit. Half of the credit sales are collected in the month following sale while the remaining half is collected in second month after the sales. The accounts receivable at December 31 are a result of December credit sales.
  • Monthly expenses are budgeted as follows: salaries and wages, $10,000 per month: a advertising, $70,000 per month; shipping, 5% of sales; other expenses, 3% of sales.

Depreciation, I including depreciation on new assets acquired during the quarter, will be $42,000 for the quart err.

  • One half of a month's raw materials purchases is paid for in the month of purchase; the to her half is paid in the following month.

Shipping expenses are paid in the month following the shipment, while advertising I s paid in one month's advance. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $84,500.

  • During January, the company will declare and pay $45,000 in cash dividends.
  • Management wants to maintain a minimum cash balance of $30,000. The company h as an agreement with a local bank that allows the company to borrow in increments of $1,0 00 at the beginning of each month. The interest rate on these loans is 1% per month and for is

This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it.

Get professional help and free up your time for more important courses

Starting from 3 hours delivery 450+ experts on 30 subjects
get essay help 124  experts online

Did you know that we have over 70,000 essays on 3,000 topics in our database?

Cite this page

Explore how the human body functions as one unit in harmony in order to life

Balance Sheet and Following Account Balances. (2017, Dec 02). Retrieved from https://phdessay.com/balance-sheet-and-following-account-balances/

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer