ACT202 coursework

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Managerial Accounting coursework
For Mr. Saif Hossain's class

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ACT202 coursework

  1. 1. ACT202 Managerial Accounting Section 03 Course Instructor- Saif Hossain Summer 2013 Coursework Samiya Yesmin 11304043 22nd August 2013 Samiya Yesmin Page 1 8/22/2013
  2. 2. ACT202 Hillyard Company 1. Sales Budget Details Production Units SP Sales $ $ Jan 3920 100 $ 392,000 $ Feb 5880 100 588,000 $ $ Mar 2940 100 294,000 $ $ Quarter 12740 Apr 2940 Quarter 224,000 $ 392,000 $ 352,800 $ 58,800 $ 803,600 $ Apr 100 $ 1,274,000 $ 100 294,000 2. Expected cash collection schedule Details Accounts receivable Jan' sales Feb.'s sales Mar's Sales Total $ $ Jan 112,000 78,400 $ 190,400 $ $ $ Feb 112,000 156,800 117,600 $ 386,400 Mar $ $ $ $ 156,800 235,200 58,800 450,800 $ $ $ $ $ 235,200 117,600 352,800 3. Production Budget Details Budgeted sales units Jan 3920 Feb 5880 Mar 2940 Quarter 12740 Apr 2940 (+) desired ending inventory 1176 588 588 2352 0 Total units needed (-) beginning inventory Required production units 5096 1000 4096 6468 1176 5292 3528 588 2940 15092 2764 12328 2940 588 2352 Samiya Yesmin Page 2 <-Assumed 8/22/2013
  3. 3. ACT202 4. Direct Materials Budget Details Production Materials per unit Production (+) desired ending inventory total ended (-) beginning inventory Materials to be purchased price of materials Purchase of materials Jan $ $ $ $ $ $ $ $ $ 4,096 $ 2 $ 8,192 $ 1,058 $ 9,250 $ 500 $ 8,750 $ 10 $ 87,504 $ Feb 5,292 2 10,584 588 11,172 1,058 10,114 15 151,704 Mar Quarter 12,328 $ 2 $ 24,656 $ 470 $ 25,126 $ 500 $ 24,626 $ $ 325,644 $ Apr 2,352.0 2.0 4,704.0 4,704.0 470.4 4,233.6 15.0 63,504.0 Apr $ $ $ $ 75,852 $ 43,218 $ Quarter 93,000 87,504 151,704 43,218 119,070 $ 375,426 2,940 $ 2 $ 5,880 $ 470 $ 6,350 $ 588 $ 5,762 $ 15 86,436 $ $ $ $ $ $ $ $ $ $ 5. Expected cash disbursements for Direct Material Details Accounts pay. 12/31 Jan.'s purchases Feb.'s purchases Mar.'s purchases Apr.'s purchases Total cash disbursements $ $ $ Jan 93,000 43,752 136,752 Feb Mar $ $ 43,752 75,852 $ 119,604 $ $ $ $ $ $ $ $ $ $ Feb 5,292 2 10,584 4,000 6,584 9 59,256 24,000 83,256 $ $ $ $ $ $ $ $ $ $ $ $ 43,218 31,752 43,218 $ $ $ Apr 2352 2 4,704 4,000 704 9 6,336 24,000 30,336 6. Direct Labour Budget Details Production Direct labour hours Labour hours required Guaranteed labour hours extra Labour hours required Bonus Wage rate Bonus labour cost Basic Labour wage (4000*6) Total Direct Labour Samiya Yesmin Jan $ $ $ $ $ $ $ $ $ 4,096 2 8,192 4,000 4,192 9 37,728 24,000 61,728 Mar Page 3 2,940 $ 2 $ 5,880 $ 4,000 $ 1,880 $ 9 $ 16,920 $ 24,000 $ 40,920 $ Quarter 12,328 2 24,656 12,000 12,656 9 113,904 72,000 185,904 8/22/2013
  4. 4. ACT202 7. Manufacturing Overhead Details Direct labour hours MO labour cost/hour Variable MOH cost Fixed MOH Total MOH $ $ $ $ Jan 8192 5 40,960 17,000 57,960 $ $ $ $ Feb 10584 5 52,920 17,000 69,920 $ $ $ $ Mar 5880 Quarter 24656 $ $ $ Quarter 48,000 $ 1,027,600 $ 1,075,600 $ April (120,340) 352,800 232,460 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 375,426 185,904 174,280 30,000 210,000 49,000 38,220 86,200 45,000 1,194,030 (118,430) 191,000 191,000 1,910 (120,340) $ $ $ $ $ $ $ 43,218 30,336 40,520 10,000 70,000 14,700 8,820 $ $ 217,594 14,866 $ 14,866 5 $ 29,400 $ 17,000 $ 46,400 $ 5 123,280 51,000 174,280 $ $ $ $ Apr 4704 5 23,520 17,000 40,520 8. Cash Budget Details Beginning cash balance (+) cash collections total cash available (-) Payments Direct materials Direct labour Manufacturing overhead Salaries & wages advertising shipping others Equipment Purchases Dividend total cash disbursements Excess/Deficit if Cash (+) Loan (-) Loan Repayment (-) Interest Ending Balance Samiya Yesmin $ $ $ Jan 48,000 190,400 238,400 $ $ $ $ $ 136,752 61,728 57,960 10,000 70,000 $ 11,760 $ $ $ $ $ $ $ $ $ Feb 30,200 386,400 416,600 $ $ $ Mar 30,880 450,800 481,680 $ $ $ $ $ $ $ $ 119,604 83,256 69,920 10,000 70,000 19,600 17,640 1,700 $ $ $ $ $ $ $ $ 119,070 40,920 46,400 10,000 70,000 29,400 8,820 84,500 391,720 24,880 6,000 $ $ 409,110 72,570 45,000 393,200 $ (154,800) $ 185,000 $ 1,850 30,200 $ $ $ 60 $ 30,880 $ Page 4 191,000 1,910 (120,340) 8/22/2013
  5. 5. ACT202 9. Income statement Sales (-) Cost of goods sold: Direct Material $ Direct Labour $ Manufacturing Overhead $ Beginning Goods inventory $ Total COGS Gross Income (-) Selling and administrative expenses: Salaries & Wages $ Advertising $ Shipping $ Other expenses $ Depreciation $ $ Interest Total S&A expense NET INCOME (-) Dividend (+) Retained earnings b/d Retained earnings c/d Samiya Yesmin Hillyard Company 10. Budgeted Balance Sheet 31-Mar $ 1,274,000 375,426 185,904 174,280 60,000 30,000 210,000 49,000 38,220 42,000 1,910 $ $ $ $ $ $ $ Assets: Cash Accounts receivable Raw Materials Inventory Finished goods Inventory Buildings & Equipment Total Assets 795,610 478,390 Liabilities & Shareholders' Equity: Accounts payable Capital Stock Loan Retained earnings c/d Total Liabilities & Equity 371,130 107,260 (45,000) 109,000 171,260 discrepancy Page 5 $ $ $ $ $ $ (120,340) 450,800 119,070 294,000 456,200 1,199,730 $ $ $ $ 371,130 510000 191,000 171,260 1,243,390 $ (43,660) 8/22/2013
  6. 6. ACT202 11. Marginal Costing Income Statement Sales (-) Cost of goods sold: Direct Material $ $ 375,426 Variable Direct Labour $ 113,904 Variable Manufacturing Overhead $ 123,280 Beginning Goods inventory $ 1,274,000 60,000 Total COGS Contribution Margin (-) Selling and administrative expenses: Salaries & Wages Advertising Shipping Other expenses Depreciation Fixed Manufacturing Overhead Fixed Direct Labour Interest Total S&A expense NET INCOME (-) Dividend (+) Retained earnings b/d Retained earnings c/d Samiya Yesmin Hence we can see that in Marginal costing method, contribution margin is higher than gross income by absorption costing system But net income is same for both as there are 672,610 no ending inventories $ $ $ $ $ $ $ $ $ $ 30,000 210,000 49,000 38,220 42,000 51,000 72,000 1,910 601,390 $ $ $ $ $ 494,130 107,260 (45,000) 109,000 171,260 Page 6 8/22/2013

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