Accounting Assignment 6 PART-1 ABC Company’s actual unit sales in the current year for January, February, and March were 15,700, 12,700, and 18,700 units, respectively. Current year selling price is $60. An analysis of general economic trends and specific initiatives at ABC forecasts increases for the coming budget year: sales volume by 10% and sales price by 5%. Required: Prepare ABC Company’s budgeted unit sales and total sales volume for the first quarter of the coming year. January February March Total Current sales (units) Budgeted volume increase % % % % Budgeted sales (units Budgeted selling price Budgeted total sales PART-2 ABC Company’s budgeted sales for June, July, and August are 16,000, 20,000, and 18,000 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 4,800 units. Required: Calculate the number of units to be produced in June and July. June July Number of units PART-3 ABC Company’s budgeted sales for June, July, and August are 15,000, 19,000, and 16,700 units, respectively. ABC requires 40% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 6,000 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 35% of the next month’s budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June. Number of pounds PART-4 ABC Company’s budgeted sales for June, July, and August are 12,400, 16,400, and 14,400 units respectively. The following cost behavior patterns are budgeted for ABC Company’s operating expenses each month: Fixed costs: salaries, $2,200; rent, $5,200; depreciation, $2,600; advertising, $3,400 Mixed costs: utilities, $3,200 + $0.40 per unit Variable costs per unit sold: sales commissions, $2.20; marketing promotions, $1.20; supplies, $0.85; bad debt expense, $0.35 Required: Prepare ABC Company’s operating expense budget for June, July, and August. Note: Enter all values as positive value. June July August Variable operating expenses: Sales commissions Marketing promotions Bad debt expenses Utilities Total variable expense Fixed operating expenses Salaries Rent Depreciation Advertising Utilities Total fixed expense Budgeted operating expense PART-5 ABC Company’s budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units respectively. The selling price for each unit is $12. Based on past experience, ABC expects that 25% of a month’s sales will be collected in the month of sale, 70% in the following month, and 2% in the second month following the sale. Required: Prepare an analysis of cash receipts from sales for ABC Company for August. Cost Item June July August Budgeted sales units Unit selli ...

1. Accounting Assignment 6
PART-1
ABC Company’s actual unit sales in the current year for
January, February, and March were 15,700, 12,700, and 18,700
units, respectively. Current year selling price is $60. An
analysis of general economic trends and specific initiatives at
ABC forecasts increases for the coming budget year: sales
volume by 10% and sales price by 5%.
Required:
Prepare ABC Company’s budgeted unit sales and total sales
volume for the first quarter of the coming year.
January
February
March
Total
Current sales (units)
Budgeted volume increase
%
%

2. %
%
Budgeted sales (units
Budgeted selling price
Budgeted total sales
PART-2
ABC Company’s budgeted sales for June, July, and August are

3. 16,000, 20,000, and 18,000 units, respectively. ABC requires
30% of the next month’s budgeted unit sales as finished goods
inventory each month. Budgeted ending finished goods
inventory for May is 4,800 units.
Required:
Calculate the number of units to be produced in June and July.
June
July
Number of units
PART-3
ABC Company’s budgeted sales for June, July, and August are
15,000, 19,000, and 16,700 units, respectively. ABC requires
40% of the next month’s budgeted unit sales as finished goods
inventory each month. Budgeted ending finished goods
inventory for May is 6,000 units. Each unit that ABC Company
produces uses 4 pounds of raw material. ABC requires 35% of
the next month’s budgeted production as raw material inventory
each month.
Required:
Calculate the number of pounds of raw material to be purchased
in June.
Number of pounds

4. PART-4
ABC Company’s budgeted sales for June, July, and August are
12,400, 16,400, and 14,400 units respectively. The following
cost behavior patterns are budgeted for ABC Company’s
operating expenses each month:
Fixed costs: salaries, $2,200; rent, $5,200; depreciation, $2,600;
advertising, $3,400
Mixed costs: utilities, $3,200 + $0.40 per unit
Variable costs per unit sold: sales commissions, $2.20;
marketing promotions, $1.20; supplies, $0.85; bad debt expense,
$0.35
Required:
Prepare ABC Company’s operating expense budget for June,
July, and August.
Note: Enter all values as positive value.
June
July
August
Variable operating expenses:
Sales commissions
Marketing promotions

5. Bad debt expenses
Utilities
Total variable expense
Fixed operating expenses
Salaries
Rent
Depreciation
Advertising
Utilities

6. Total fixed expense
Budgeted operating expense
PART-5
ABC Company’s budgeted sales for June, July, and August are
13,800, 17,800, and 15,400 units respectively. The selling price
for each unit is $12. Based on past experience, ABC expects
that 25% of a month’s sales will be collected in the month of
sale, 70% in the following month, and 2% in the second month
following the sale.
Required:
Prepare an analysis of cash receipts from sales for ABC
Company for August.
Cost Item
June
July
August
Budgeted sales units
Unit selling price
Budgeted sales revenue

7. August collections
Current month’s sales
Prior month’s sales
Second prior month’s sales
Total collections
PART-6
ABC Company’s raw materials purchases for June, July, and
August are budgeted at $36,000, $26,000, and $51,000,
respectively. Based on past experience, ABC expects that 40%
of a month’s raw material purchases will be paid in the month
of purchase and 60% in the month following the purchase.
Required:
Prepare an analysis of cash disbursements from raw materials
purchases for ABC Company for August.
.:
Costs
June
July
August
Budgeted raw material purchases

8. August cash payments:
Current month’s purchases
Prior month’s purchases
Total cash payments
PART-7
ABC Company has a cash balance of $36,000 on August 1 and
requires a minimum ending cash balance of $22,610. Cash
receipts from sales budgeted for August are $251,610. Cash
disbursements budgeted for August include inventory purchases,
$28,000; other manufacturing expenses, $108,000; operating
expenses, $42,000; bond retirements, $61,000; and dividend
payments, $26,000.
Required:
Prepare a cash budget for ABC Company for August.
August
Beginning cash balance
Cash Receipts:

9. Total cash available
Cash Disbursements:
Total cash disbursements
Ending cash balance
PART-8
Acme Company’s production budget for August is 17,700 units
and includes the following component unit costs: direct
materials, $6.00; direct labor, $10.20; variable overhead, $6.20.
Budgeted fixed overhead is $34,000. Actual production in
August was 18,630 units.
Required:
Prepare a flexible budget that would be used to compare against

10. actual production costs for August.
Note: Round "Cost per unit" to 2 decimal places.
Cost Formula
Original Budget (17,700 units)
Fixed Budget (18,630 units)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total budgeted cost
PART-9
Acme Company’s production budget for August is 19,100 units
and includes the following component unit costs: direct
materials, $9.00; direct labor, $11.50; variable overhead, $5.00.

11. Budgeted fixed overhead is $48,000. Actual production in
August was 21,942 units. Actual unit component costs incurred
during August include direct materials, $10.00; direct labor,
$11.00; variable overhead, $7.00. Actual fixed overhead was
$51,100.
Required:
Prepare a performance report, including each cost component.
Note: Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e.,
zero variance).
Cost Component
Original Budget (19,100 units)
Fixed Budget (21,942 units)
Actual Cost (21,942 units)
Budget Variance
Direct materials
Direct labor
Variable overhead

12. Fixed overhead
Total budgeted cost
PART-10
Western Manufacturing produces a single product. The original
budget for April was based on expected production of 11,000
units; actual production for April was 12,100 units. The original
budget and actual costs incurred for the manufacturing
department follow:
Original Budget
Actual Costs
Direct materials
$ 166,100
$ 189,300
Direct labor
136,400
155,300
Variable overhead
68,750
72,600
Fixed overhead
69,000
71,000
Total
$ 440,250
$ 488,200

13. Required:
Prepare an appropriate performance report for the
manufacturing department.
Note: Do not round intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Item
Original Budget (11,000 units)
Fixed Budget (12,100 units)
Actual Cost
Variance
Direct materials
$ 166, 100
$ 189,300
F/U/None
Direct labor
136,400
155,300
F/U/None
Variable overhead
68,750
72,600
F/U/None
Fixed overhead
69,000
71,000
F/U/None

14. Total
$ 440,250
$ 488,200
F/U/None
Accounting Assignment 5
PART-1
The following information is from ABC Company’s general
ledger for the month of September: Beginning and ending
finished goods inventory, respectively, were 63,000 and 57,000.
Cost of goods sold for September was $146,000.
Required:
How much was ABC Company’s cost of goods manufactured in
September?
Cost of goods manufactured
PART-2
Maryville Incorporated incurred the following costs during
June:
Raw materials used
$ 331,000
Direct labor
652,000
Manufacturing overhead, actual
448,000
Selling expenses
267,000
Administrative expenses
194,000
Interest expense

15. 91,000
During the month, 53,000 units of product were manufactured
and 48,000 units of product were sold. On June 1, Maryville
carried no inventories. On June 30, there were no inventories
other than finished goods.
Required:
a. Calculate the cost of goods manufactured during June and the
average cost per unit of product manufactured.
b. Calculate the cost of goods sold during June.
c. Calculate the difference between cost of goods manufactured
and cost of goods sold. How will this amount be reported in the
financial statements?
d. Prepare a traditional (absorption) income statement for
Maryville for the month of June. Assume that sales for the
month was $2,448,000 and the company’s effective income tax
rate was 30%.
Complete this question by entering your answers in the tabs
below.
a. Calculate the cost of goods manufactured during June and the
average cost per unit of product manufactured.
b. Calculate the cost of goods sold during June.
A & B
a. Cost of goods manufactured
a. Average cost per unit
b. Cost of goods sold

16. C
Calculate the difference between cost of goods manufactured
and cost of goods sold. How will this amount be reported in the
financial statements?
Difference
Amount will be reported in
D
Prepare a traditional (absorption) income statement for
Maryville for the month of June. Assume that sales for the
month was $2,448,000 and the company’s effective income tax
rate was 30%.
MARYVILLE INCORPORATED
Absorption Income Statement
For the month of June

17. PART-3
GrandSlam Incorporated incurred the following costs during
March:
Selling expenses
$ 157,100
Direct labor
289,000
Interest expense
42,300
Manufacturing overhead, actual
175,320
Raw materials used
494,000
Administrative expenses
124,900
During the month, 19,800 units of product were manufactured
and 10,100 units of product were sold. On March 1, GrandSlam

18. carried no inventories. On March 31, there were no inventories
for raw materials or work in process.
Required:
a. Calculate the cost of goods manufactured during March and
the average cost per unit of product manufactured.
b. Calculate the cost of goods sold during March.
c. Calculate the difference between cost of goods manufactured
and cost of goods sold. How will this amount be reported in the
financial statements?
d. Prepare a traditional (absorption) income statement for
GrandSlam for the month of March. Assume that sales for the
month was $1,050,000 and the company's effective income tax
rate was 35%.
Complete this question by entering your answers in the tabs
below.
A & B
a. Calculate the cost of goods manufactured during March and
the average cost per unit of product manufactured.
Note: Round "Average cost per unit" to 2 decimal places.
b. Calculate the cost of goods sold during March.
Note: Round "Average cost per unit" to 2 decimal places.
Show less
a. Cost of goods manufactured
a. Average cost per unit
b. Cost of goods sold

19. C
Calculate the difference between cost of goods manufactured
and cost of goods sold. How will this amount be reported in the
financial statements?
Note: Round "Average cost per unit" to 2 decimal places.
Difference
Amount will be reported in
D
Prepare a traditional (absorption) income statement for
GrandSlam for the month of March. Assume that sales for the
month was $1,050,000 and the company's effective income tax
rate was 35%.
Note: Round "Average cost per unit" to 2 decimal places.
GRANDSLAM INCORPORATED
Absorption Income Statement
For the month of March

20. PART-4
Match each of the following cost items with the value chain
business function where you would expect the cost to be
incurred:
A.
Customer Service
B.
Design
C.
Distribution
D.
Marketing
Cost Item
Business Function
1. Purchase of Raw Materials

21. 2. Advertising
3. Salary of Research Scientists
4. Delivery Expenses
5. Reengineering of Product Assembly Process
6. Replacement Labor Expenses for Warranty Repairs
7. Manufacturing Supplies
8. Sales Salaries
9. Purchase of CAD (computer-aided design) Software
10. Salary of Website Manager`
PART-5
Match each of the following cost items with the value chain
business function where you would expect the cost to be
incurred:
A.
Customer Service
B.
Design
C.
Distribution
D.
Marketing`
Cost Item
Business Function
1. Labor time to repairs products under warranty

22. 2. Radio commercials
3. Labor costs of delivering customer orders
4. Testing of competitor’s product
5. Direct manufacturing labor costs
6. Development of order tracking system for online sales
7. Design cost of new product brochures
8. Hours spent designing childproof bottles
9. Training costs for representatives to staff the customer call
center
10. Installation of robotics equipment in manufacturing plant
PART-6
Classify each of the following costs as Product (direct/indirect)
or Period and Variable, Fixed or Mixed.:
Costs
Product (Direct/ndirect) or Period
Variable/Fixed/Mixed
Wages of assembly-line workers
Depreciation of plant equipment
Glue and nails for production
Outbound delivery expense

23. Raw materials handling costs
Salary of marketing manager
Production run setup costs
Administrative office utilities
Electricity cost of retail stores
Research and development expense
PART-7
Janson Incorporated produces pickup truck bumpers. Overhead
is applied on the basis of machine hours required for cutting and
fabricating. A predetermined overhead application rate of $9.30
per machine hour was established for 2022.
Required:
a. If 9,900 machine hours were expected to be used during 2022,
how much overhead was expected to be incurred?
b. Actual overhead incurred during 2022 totaled $121,375, and
9,600 machine hours were used during 2022. Calculate the
amount of overapplied or underapplied overhead for 2022.
Note: Input the amount as positive value.
c. Whether the overapplied or underapplied overhead for the
year is normally transferred to cost of goods sold in the income
statement?

24. :
a
Budgeted overhead
b
(Here- choose one of either) Overapplied overhead or
Underapplied overhead
c
Cost of goods sold in the income statement is normal
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