## [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

Variable Cost

\$ \$ \$ \$ Make or Buy

\$ 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, &amp;

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

Ending cash balance Line of Credit balance

April

Loan balance at beg. of month

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

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

Salaries expense

Payroll tax expense

Depreciation

Total Expenses

Income before taxes

Income tax expense

Net Income/(Loss)

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Sep 18, 2020

Solution~0001001558.zip (25.37 KB)

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)

STATUS

QUALITY

Approved

Sep 18, 2020

EXPERT

Tutor