Solved: Cooke Company has the following post closing

trial balance on December

Cooke Company has the following post closing trial balance on December

Cooke Company has the following post-closing trial balance on December 31, 2016:

The company’s accounting department has gathered the following budgeting information for the
first quarter of 2017:

Budgeted total sales, all on account ............ $ 308,500

Budgeted direct materials to be purchased and used .... 34,000

Budgeted direct labor cost .............. 13,320

Budgeted manufacturing overhead costs:

Variable manufacturing overhead ........... 2,220

Depreciation .................... 1,200

Insurance and property taxes .............. 1,020

Budgeted cost of goods sold .............. 71,960

Budgeted selling and administrative expenses:

Salaries expense .................... 6,000

Rent expense ................... 4,500

Insurance expense .................. 1,900

Depreciation expense ................ 500

Supplies expense ................. 12,340

Budgeted cash receipts from customers ........ 262,300

Budgeted income tax expense ............ 45,000

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 Budgeted purchase and payment for capital expenditures

(additional equipment) ................ 37,000

Additional information:

a. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next
quarter.

b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax
expense are paid in the quarter incurred.

Requirements

1. Prepare Cooke Company’s budgeted income statement for the first quarter of 2017.

2. Prepare Cooke Company’s budgeted balance sheet as of March 31, 2017.

3. Prepare Cooke Company’s budgeted statement of cash flows for the first quarter of 2017.
The company’s accounting department has gathered the following budgeting information for the
first quarter of 2017:

Cooke Company has the following post closing trial balance on December

ANSWER
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december/

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