9-6 MULTIPLE CHOICE

1d
2e
3c
4e
5d
6d
7e
8a
9c
10 c
11 e
12 b
13 a
14 a
15 a
16 e
17 c
18 a
19 d
20 c

9-66.
a.

Month
Particulars January
Sales Units 40000
Price per unit 205
TOTAL SALES 8200000

b.

Month
Particulars January
Sales Units 40000
Planned ending units 40000
Beg. Units 32000
Planned Production units 48000

c.

Month
Particulars January metals
Planned production units 48000
 Direct Material required per unit 10
Direct Material required for production 480000
Budgeted ending Direct Material 290000
TOTAL needs 770000
Less: Beg. DM 240000
Budgeted Direct material purchase 530000
cost per unit 8
TOTAL cost 4240000

d.

Month
January
Planned Production units 48000
Direct Labor time required per unit 3
Budgeted direct labor hrs 144000
cost per direct labor hr 14.25
Budgeted direct labor cost 2052000

e.

Month
January
Budgeted direct labor hrs 144000
Variable OH rate 2.4
Budgeted variable OH 345600
Budgeted fixed OH 338000
TOTAL OH 683600

f.

Month
January
Planned sales 40000
Variable selling administrative expenses per unit 3.6
TOTAL variable expense 144000
Fixed selling and admin. Expenses
Salaries 50000
Depreciation 40000
Other 20000
Total fixed expenses 110000
Total selling and admin expenses 254000

g.
 DM
metal
components
DL
OH
Variable
Fixed
Total unit cost
FG inv.

h.

Particulars
DM
Metal
components
DL used
OH
Budgeted manuf. Cost
Add: beg. FG
COGAS
less: end. FG
Budgeted COGS

i.

j.

beg. Balance
cash receipts
cash available
less: disbursements
purchases
DL
OH
selling and administration
 TOTAL
end. Balance
borrowed
interest paid
end. Bal.

9-70.

sales
less: COGS
opening inv.
purchase
closing inv.
Gross profit
expenses
salaries and wages
utilities
others
property taxes
advertising fee
rent expense
depreciation
interest
net loss

Assets
Cash
A/R
Inv.
Plant and equipment, net
TOTAL ASSETS

Liabilities and equity

A/P
common stock
Retained earnings
TOTAL LIABILITIES AND EQUITY

op. balance
collections
total cash
disbursement
purchases
salaries and wages
utilities
other
property taxes
advertising fees
rent exp.
total payments
excess of cash over payments
financing
borrowing
repayment
interest
total
Cash balance
 Allison's Manufacturing
Sales Budget
Month
February March TOTAL
50000 60000 150000
205 205 205
10250000 12300000 30750000

Allison's Manufacturing
Production Budget
Month
February March TOTAL April
50000 60000 150000 60000
48000 48000 48000 49600
40000 48000 32000 48000
58000 60000 166000 61600

Allison's Manufacturing
Direct Material Purchase Budget
Month
January components February metals February components March metals
48000 58000 58000 60000
 6 10 6 10
288000 580000 348000 600000
174000 300000 180000 308000
462000 880000 528000 908000
144000 290000 174000 300000
318000 590000 354000 608000
5 8 5 8
1590000 4720000 1770000 4864000

Allison's Manufacturing
Direct Labor Budget
Month
February March TOTAL
58000 60000 166000
3 3 3
174000 180000 498000
14.25 14.25 14.25
2479500 2565000 7096500

Allison's Manufacturing
Overhead Budget
Month
February March TOTAL
174000 180000 498000
2.4 2.4 2.4
417600 432000 1195200
338000 338000 338000
755600 770000 1533200

Allison's Manufacturing
Selling and administrative expenses budget
Month
February March TOTAL
50000 60000 150000
3.6 3.6 3.6
180000 216000 540000

50000 50000 150000

40000 40000 120000
20000 20000 60000
110000 110000 330000
290000 326000 870000

Allison's Manufacturing
Ending finished goods inventory budget
 80
30 110
42.75

2.4

155.15
7447200

Allison's Manufacturing
Cost of goods sold budget

13824000
5184000 19008000
7096500
2209200
28313700
5313920
33627620
-7447200
26180420

Allison's Manufacturing
Budgeted Income Statement
Sales 30750000
less: COGS 26180420
Gross Margin 4569580
less: S&A expenses 870000
income before taxes 3699580

Allison's Manufacturing
Cash Budget
Jan. Feb. Mar. TOTAL
400000 50000 284900 734900
8200000 10250000 12300000 30750000
8600000 10300000 12584900 31484900

5830000 6490000 6688000 19008000

2052000 2479500 2565000 7096500
683600 755600 770000 2209200
254000 290000 326000 870000
 8819600 10015100 10349000 29183700
-219600 284900 2235900 2301200
269600 0 -269600 0
0 0 -5392 -5392
50000 284900 1960908 2295808

Statement Income
325000

33750
251250
-41250 243750
81250

30000
3000
5100
15000
6000
15000
12000
155 86255
-5005

Balance Sheet

14770
96600
41250
413000
565620

91875
210000
263745
565620

Cash budget
july august sept. quarter
10550 10700 10001 10550
102600 100700 113300 316600
113150 111400 123301 327150
78750 71250 88125 238125
10000 10000 10000 30000
1000 1000 1000 3000
1700 1700 1700 5100
15000 15000
6000 6000
5000 5000 5000 15000
111450 94950 105825 312225
1700 16450 17476 14925

9000 9000
-6354 -2646 -9000
-95 -60 -155
9000 -6449 -2706 -155
10700 10001 14770 14770
March components TOTAL metals TOTAL components
60000 166000 166000
 6 10 6
360000 1660000 996000
184800 308000 184800
544800 1968000 1180800
180000 240000 144000
364800 1728000 1036800
5 8 5
1824000 13824000 5184000