ACCT2242 Mount Saint Mary College Managerial Accounting Questions use MS-WORD please.———————————————————————-

ACCT2242 Mount Saint Mary College Managerial Accounting Questions use MS-WORD please.———————————————————————————————— ACCT 2242
ASSIGNMENT # 4
DUE (In class)
June 13, 2019
Use MS-WORD and/or MS-EXCEL
Question # 1. (40 marks)
P9-69B
Question # 2. (40 marks)
Tonia Inks requests your assistance in preparing the master budget for October. The following
balance sheet is available:
Cash
October 1
October 31
(Actual)
(Planned)
$ 23,000
$
?
Accounts receivable
40,000
Raw material X ($3 per unit)
12,000
18,000
Raw material Y ($2 per unit)
5,000
8,000
Finished goods ($20 per unit)
40,000
60,000
Total assets
Accounts payable
Owners’ equity
Total equities
?
$120,000
$
?
$ 38,000
$
?
82,000
$120,000
?
$
?
Additional information is as follows:
1. August sales were $90,000 and September sales were $80,000.
2. All sales are on account. Half is collected within the month of sale and a 3% discount is
granted; the other half is collected in the month following without the discount.
3. August purchases were $32,000 and September purchases were $40,000.
4. All purchases are on account, with payments as follows:
a. ¼ in the month of purchase, taking a 2% discount.
b. ¼ in the month following, taking a 2% discount.
c. ¼ in the month following, taking no discount.
d. ¼ two months following, taking no discount.
5. Selling and administrative costs are $5 per unit variable and $60,000 per month fixed. The
firm has no depreciable assets of any kind.
6. Projected sales for October are 4,000 units at $50 per unit.
7. Each finished unit requires 2 units of material X and one unit of material Y.
Required
a.
b.
c.
d.
e.
f.
How many units must be produced to meet the goals?
How many units of material X must be purchased to meet the goals?
How many units of material Y must be purchased to meet the goals?
How much cash (in total) will be disbursed to materials suppliers during the month?
What will collections from customers in October total?
What is the projected net income for October?
Question # 3. (20 marks)
Daniel, Inc. made sales of $147,000 in January and $110,000 in February. The firm purchases its
product as needed. The firm sets its selling price equal to 150% of the purchase price of its product.
Collections from customers are generally 50% in the month of sale and 45% in the month following
sale. On the average, 5% of sales are never collected. The firm pays its suppliers 60% in the month
of purchase and 40% in the month following purchase. Salespersons are a commission of 4% of
selling price. Commissions are paid in the month following sale. Administrative costs are $8,000
per month (including $2,000 of depreciation). The administrative costs are paid as incurred. The
firm has a cash balance of $12,000 on February 1.
Required
What is the anticipated cash balance on February 28? That is, prepare the cash budget for the
month of February.
ACCT 2242
ASSIGNMENT # 4
DUE (In class)
June 13, 2019
Use MS-WORD and/or MS-EXCEL
Question # 1. (40 marks)
P9-69B
Question # 2. (40 marks)
Tonia Inks requests your assistance in preparing the master budget for October. The following
balance sheet is available:
Cash
October 1
October 31
(Actual)
(Planned)
$ 23,000
$
?
Accounts receivable
40,000
Raw material X ($3 per unit)
12,000
18,000
Raw material Y ($2 per unit)
5,000
8,000
Finished goods ($20 per unit)
40,000
60,000
Total assets
Accounts payable
Owners’ equity
Total equities
?
$120,000
$
?
$ 38,000
$
?
82,000
$120,000
?
$
?
Additional information is as follows:
1. August sales were $90,000 and September sales were $80,000.
2. All sales are on account. Half is collected within the month of sale and a 3% discount is
granted; the other half is collected in the month following without the discount.
3. August purchases were $32,000 and September purchases were $40,000.
4. All purchases are on account, with payments as follows:
a. ¼ in the month of purchase, taking a 2% discount.
b. ¼ in the month following, taking a 2% discount.
c. ¼ in the month following, taking no discount.
d. ¼ two months following, taking no discount.
5. Selling and administrative costs are $5 per unit variable and $60,000 per month fixed. The
firm has no depreciable assets of any kind.
6. Projected sales for October are 4,000 units at $50 per unit.
7. Each finished unit requires 2 units of material X and one unit of material Y.
Required
a.
b.
c.
d.
e.
f.
How many units must be produced to meet the goals?
How many units of material X must be purchased to meet the goals?
How many units of material Y must be purchased to meet the goals?
How much cash (in total) will be disbursed to materials suppliers during the month?
What will collections from customers in October total?
What is the projected net income for October?
Question # 3. (20 marks)
Daniel, Inc. made sales of $147,000 in January and $110,000 in February. The firm purchases its
product as needed. The firm sets its selling price equal to 150% of the purchase price of its product.
Collections from customers are generally 50% in the month of sale and 45% in the month following
sale. On the average, 5% of sales are never collected. The firm pays its suppliers 60% in the month
of purchase and 40% in the month following purchase. Salespersons are a commission of 4% of
selling price. Commissions are paid in the month following sale. Administrative costs are $8,000
per month (including $2,000 of depreciation). The administrative costs are paid as incurred. The
firm has a cash balance of $12,000 on February 1.
Required
What is the anticipated cash balance on February 28? That is, prepare the cash budget for the
month of February.
Depreciation expense …..
Insurance expense…….
…… $2,200, paid as incurred
. $ 300
$ 100, expiration of prepaid amount
20% of operating income
Income tax……
Requirement
1. Prepare Binder’s budgeted income statements for May and June. Show cost of goods
sold computations.
P9-69B Prepare cash budgets (Learning Objective 3)
Roan’s Manufacturing is preparing its cash budgets for the first 2 months of the upcoming
year. The following information concerns the company’s upcoming cash receipts and cash
disbursements.
a. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the month
of sale and the remainder in the month after sale. Actual sales in December were
$51,000. Schedules of budgeted sales for the two months of the upcoming year are
as follows:
Budgeted sales revenue
$60,000
January
$69,000
February
b. Actual purchases of direct materials in December were $25,500. Roan’s purchases of
direct materials in January are budgeted to be $23,500 and $28,000 in February. All
purchases are paid 30% in the month of purchase and 70% the following month.
c. Salaries and sales commissions are also paid half in the month earned and half the
next month. Actual salaries were $8,000 in December
. Budgeted salaries in January
are $9,000 and February budgeted salaries are $10,500. Sales commissions each
month are 8% of that month’s sales.
d. Rent expense is $3,300 per month.
e. Depreciation is $2,800 per month.
f. Estimated income tax payments are made at the end of January. The estimated tax
payment is projected to be $12,000.
The cash balance at the end of the prior year was $18,000.
Requirements
9.
1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for
purchases, and (c) budgeted cash payments for operating expenses. Show amounts
for each month and totals for January and February,
2. Prepare a combined cash budget. If no financing activity took place, what is the
budgeted cash balance on February 28?
P9-70B Prepare a combined cash budget and a budgeted balance sheet
(Learning Objective 3)
Sheet Printing of Whitehorse has applied for a loan. The Royal Bank of Canada has
requested a budgeted balance sheet at April 30 and a combined cash budget for April
As Sheet Printing’s controller, you have assembled the following information:
a. March 31 equipment balance. $52
no

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