acc 206 week 4 assignment balance sheet of watson company

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Click the below link to access the answer ACC 206 Week 4_balance sheet of Watson Company_Complete A+ Answer ACC 206 Week 4_balance sheet of Watson Company_Complete A+ Answer ACC 206 Week 4 Assignment Please complete the following exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Actual Manufacturing Variable Overheads Expenditure 508400 1. Comprehensive budgeting The balance sheet of Watson Company as of December 31, 20X1, follows. Actual hours x Standard Variable Overhead Rate per hour – 359800 WATSON COMPANY 148600 Balance Sheet December 31, 12X1 Idle Capacity Assets 359800 Cash $4,595 1800000 Accounts receivable 10,000 Finished goods (575 units x $7.00) 4,025 Direct materials (2,760 units x $0.50) 1,380 Plant & equipment $50,000 Less: Accumulated depreciation 10,000 40,000 3,59,800 Total assets $60,000 1,50,000 150000 Liabilities & Stockholders’ Equity 5,09,800 Accounts payable to suppliers $14,000 5,08,400 Common stock $25,000 1,400 Favorable Retained earnings 21,000 46,000 Total liabilities &. stockholders’ equity $60,000 (21,500) Unfav The following information has been extracted from the firm’s accounting records: 1. All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted

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ACC 206 Week 4_balance sheet of Watson Company

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ACC 206 Week 4_balance sheet of Watson Company_Complete A+ Answer

ACC 206 Week 4_balance sheet of Watson Company_Complete A+ AnswerACC 206 Week 4 AssignmentPlease complete the following exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Actual Manufacturing Variable Overheads Expenditure 5084001. Comprehensive budgetingThe balance sheet of Watson Company as of December 31, 20X1, follows. Actual hours x Standard Variable Overhead Rate per hour 359800WATSON COMPANY 148600Balance SheetDecember 31, 12X1 Idle CapacityAssets 359800Cash $4,595 1800000Accounts receivable 10,000Finished goods (575 units x $7.00) 4,025Direct materials (2,760 units x $0.50) 1,380Plant & equipment $50,000Less: Accumulated depreciation 10,000 40,000 3,59,800Total assets $60,000 1,50,000 150000Liabilities & Stockholders Equity 5,09,800Accounts payable to suppliers $14,000 5,08,400Common stock $25,000 1,400 FavorableRetained earnings 21,000 46,000Total liabilities &. stockholders equity $60,000 (21,500) UnfavThe following information has been extracted from the firms accounting records:1. All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X2 are: January, 1,500 units,- February, 1,600 units; March, 1,800 units; April, 2,000 units; May, 2,100 units.2. Management wants to maintain the finished goods inventory at 30% of the following months sales. 5700 Favorbale3. Watson uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the following months production needs.4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month.5. Watsons product requires 30 minutes of direct labor time. Each hour of direct labor costs $7.Instructions: -14400 Unfava. Rounding computations to the nearest dollar, prepare the following for January through March:1) Sales budget2) Schedule of cash collections3) Production budget4) Direct material purchases budget5) Schedule of cash disbursements for material purchases6) Direct labor budgetb. Determine the balances in the following accounts as of March 31:1) Accounts Receivable2) Direct Materials3) Accounts Payable2. Basic flexible budgetingCentron, Inc., has the following budgeted production costs:Direct materials $0.40 per unitDirect labor 1.80 per unitVariable factory overhead 2.20 per unitFixed factory overheadSupervision $24,000Maintenance 18,000Other 12,000The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively.During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs:Direct Materials $10,710Direct Labor 47,175Variable factory overhead 51,940Fixed factory overheadSupervision 24,500Maintenance 23,700Other 16,800Total production costs $174,825Instructions:a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity.b. Was Centrons experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.c. Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance.3. Straightforward variance analysisArrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.Direct materials: 4 units @ $6.50 $26.00Direct labor: 8 hours @ $8.50 68Variable factory overhead: 8 hours @ $7.00 56Fixed factory overhead: 8 hours @ 2.5 20Total standard cost per unit $170.00The following information pertains to activity for December:1. Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.2. Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.3. Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.4. Actual production amounted to 6,500 completed units.Instructions:a. Compute Arrows direct material variances.b. Compute Arrows direct labor variances.c. Compute Arrows variances for factory overhead.

ACC 206 Week 4_balance sheet of Watson Company_Complete A+ Answer

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