Question Details

[answered] 1.) Corn Co incurs a cost of $39 per unit, of which $15 is


Could i get some help with homework and a quiz in Cost Control & short-term business decisions?


1.)

 

Corn Co incurs a cost of $39 per unit, of which $15 is variable, to make a

 

product that normally sells for $50. A foreign wholesaler offers to buy 5522 units at

 

$22 each. Corn will incur shipping costs of $2 per unit. Compute the increase or

 

decrease in net income Corn will realize by accepting the special order using

 

differential analysis and complete the below table. Should they accept the special

 

order? Round all answers to the nearest whole unit and whole dollar. Enter negative

 

numbers with a minus sign. Enter zeros where appropriate.

 

Accept or Reject the Special Order

 

Reject Accept Differential

 

Revenue

 

Costs

 

Net

 

Income $ $ $ $ $ $ 2.) Jackson Co must decide whether to make or buy some of its components. The

 

variable costs of producing 92000 electrical cords for its floor lamps are $21 per unit.

 

The fixed costs associated with making the cords is $435000. Instead of making the

 

cords, the company has the opportunity to buy the cords at $26 per unit. However,

 

30% of the fixed costs will remain. Prepare a differential analysis showing whether

 

the company should make or buy the electrical cords. Round all answers to the

 

nearest whole unit and whole dollar. Enter negative numbers with a minus sign.

 

Enter zeros where appropriate.

 

Make or Buy

 

Make

 

Variable Cost

 

Fixed Cost Buy Differential

 

$ $ $ $ Make or Buy

 

Make Buy Differential

 

$ Total Cost $ 3.) Beltway Company is preparing their sales and selling expense budgets for the

 

next quarter (October, November, December). Beltway produces and sells one

 

product. The budgeted sales price for this product is $55 per unit. The company

 

expects to sell 12,000 units in October. They are budgeting a 3% increase in unit sales

 

each month after October.

 

Prepare the sales budget for the quarter (in units and dollars). Round all answers to

 

the nearest whole unit and whole dollar.

 

Beltway Company

 

Sales Budget

 

For October, November, and December

 

Budgeted Budgeted

 

Budgeted

 

Unit Sales Unit Price Sales in Dollars

 

October

 

Novembe

 

r

 

December

 

Total $ $ $ $ $ $

 

$ 4.) The January 1st inventory of finished units for Ryan and Son's Company is

 

3,000. During January the company plans to sell 34,000 units and desires a January

 

31st inventory of 5,000 units. How many units should the company plan on producing in January?

 

units 5.) Halifax, Inc. is trying to prepare their budget for the third quarter. As part of the

 

budget they need to determine the total cash that will be collected from sales for each

 

month. Halifax reports the following budgeted sales information necessary to

 

calculate budgeted cash collections:

 

June

 

Sales July $674,93

 

$634,790

 

0 August September

 

$661,06

 

0 $642,080 35% of the monthly sales listed above are cash sales and are therefore collected right

 

away and 65% of the sales are on account. The amount sold on account each month is

 

collected the following month.

 

Calculate the amount of cash collected in July, August, and September. Round all

 

answers to the nearest whole dollar.

 

July August September Cash Sales

 

Cash collected from sales on account

 

Total Cash Collected 6.) Given the following information, how much direct labor should be budgeted for

 

February?

 

Selected data for the month of February:

 

Planned production

 

39,000 units

 

Direct labor hours per unit

 

1.25 hours Direct labor rate

 

$ $12 per hour should be budgeted for direct labor. 7.) Kaiser, Inc. has the following budgeted cash collections from the cash receipts

 

budget and cash payments (excluding loan principal repayments and interest

 

payments) from the cash disbursements budget for the next quarter (April, May, &

 

June).

 

Cash

 

Cash

 

Receipts Payments

 

April

 

May

 

June $34,438

 

$35,298

 

$30,842 $31,450

 

$42,378

 

$27,551 In addition, Kaiser's beginning cash balance as of April 1 is $15,240.

 

Kaiser, Inc. would like to maintain a minimum $15,000 cash balance at all times. In

 

order to achieve this goal Kaiser has negotiated a line of credit with the bank. If the

 

preliminary cash balance falls below $15,000 Kaiser will borrow the necessary funds

 

to keep their balance above the desired amount. If the preliminary cash balance is

 

above the $15,000 minimum balance they will use any excess to pay down any

 

outstanding loan balance at the time. The interest rate on any outstanding line of credit

 

balance is 6% per year. The interest is paid at the end of each month and is computed

 

on the beginning loan balance for the month. They have a zero balance on their line of

 

credit on April 1st.

 

Prepare the cash budget for the quarter.

 

Enter cash disbursements and loan repayments as a negative number. Round all

 

calculations to the nearest whole dollar. Kaiser, Inc.

 

Cash Budget

 

For April, May, June

 

April

 

Beginning Cash Balance

 

Cash collected May June $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Cash Disbursements

 

Cash payments (given)

 

Interest on bank loan (6%)

 

Preliminary cash balance

 

Additional loan/ or (repayment)

 

Ending cash balance Line of Credit balance

 

April

 

Loan balance at beg. of month

 

Additional money borrowed

 

principal amount repaid

 

Loan balance at end of month 8.) May June $ $ $ $ $ $ $ $ $ $ $ $ Applewood Company is a service based company. They are putting together

 

their budgeted income statement for next year. They project their next year's budget

 

based on prior year's results. Their prior year's income statement follows:

 

Applewood Company

 

Actual Income Statement

 

For Prior Year

 

Sales

 

Expenses:

 

Sales commission

 

expense

 

Rent expense

 

Advertising expense

 

Salaries expense

 

Payroll tax expense

 

Depreciation

 

Total Expenses

 

Income before taxes

 

Income tax expense

 

Net Income/(Loss) 899,500 98,945

 

22,200

 

89,669

 

220,000

 

24,399

 

25,000

 

480,213

 

419,287

 

125,786

 

293,501 Applewood's management also predicts the following information to assist in

 

preparing the budget for the next year.

 

1. Sales will increase by 8%.

 

2. Sales Commissions are 11% of sales.

 

3. Rent expense for next year is $1,850 per month for January - August and will

 

increase to $2,100 on September 1st.

 

4. Advertising expense is 12% of sales.

 

5. Salaries are expected to increase by 3%.

 

6. Payroll tax expense is expected to remain 7.65% of commissions and salaries

 

combined. 7. Depreciation expense is expected to remain unchanged.

 

8. The income tax rate is 30%.

 

Prepare a budgeted income statement for the next year. Round all calculations to the

 

nearest whole dollar.

 

Applewood Company

 

Budgeted Income Statement

 

For Next Year

 

Sales

 

Expenses:

 

Sales commission

 

expense

 

Rent expense

 

Advertising expense

 

Salaries expense

 

Payroll tax expense

 

Depreciation

 

Total Expenses

 

Income before taxes

 

Income tax expense

 

Net Income/(Loss)

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001001558.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now