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Chapter 15

The document contains sample budgets and financial statements from various chapters of a cost accounting textbook. It includes sales budgets, production budgets, material purchase requirements, manufacturing cost budgets, and projected income statements for multiple companies. The document provides numerical examples to illustrate how to calculate key metrics like cost of goods sold, manufacturing costs, operating expenses, net income, etc.

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Rahila Rafiq
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© Attribution Non-Commercial (BY-NC)
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Download as PDF, TXT or read online on Scribd
129 views

Chapter 15

The document contains sample budgets and financial statements from various chapters of a cost accounting textbook. It includes sales budgets, production budgets, material purchase requirements, manufacturing cost budgets, and projected income statements for multiple companies. The document provides numerical examples to illustrate how to calculate key metrics like cost of goods sold, manufacturing costs, operating expenses, net income, etc.

Uploaded by

Rahila Rafiq
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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COST ACCOUNTING 9TH EDITION

Chapter 15

Page 73

COST ACCOUNTING 9TH EDITION


CHAPTER 15 EXERCISES EXERCISE 1
Whatley Borthers Sales Budget For the period 19 A Average Sales Product Barb Shir Bett (In Pound) 10000 7500 7500 25000 Sale Price Per Pound 30 18 23 Total Sale Price 300000 135000 172500 607500 Cost of Sale/Pound 21 16 21 Cost of Sales 210000 120000 157500 487500 Gross Profit Per Pound 9 2 2 Total Gross Profit 90000 15000 15000 120000

Whatley Borthers Sales Budget For the period 19 B Sales Product Barb Shir Bett (In Pound) 20000 10500 7500 38000 Average Sale Price Per Pound 37 18.72 23.92 Total Sale Price 740000 196560 179400 1115960 Cost of Sale/Pound 28 18 23.1 Cost of Sales 560000 189000 173250 922250 Gross Profit Per Pound 9 0.72 0.82 Total Gross Profit 180000 7560 6150 193710

Exercise 2 Swisher Company Sales Budget For the Period Year 5 Press Model Number 222 333 444 Sales in Units Year3 Year4 120 130 160 240 85 70

Year1 100 100 100

Year2 110 120 95

Year5 140 400 50

Swisher Company Production Budget For the Period Year 5 Units Opening Inventory 4 5 5 2 5 4

Press Model Number 222 333 444

Sales

Desired Ending Inventory

Production Required 142 400 51

140 400 50

Exercise 3 Schwankenfelder Company Production Budget

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Product Model Ceno Nepo Teno Exercise 4 Magic Enterprises Production Budget For the Next Year Units Finished Goods Desired Opening Production Ending Inventory Required Inventory 15000 16000 249000 10000 12000 173000 20000 25000 295000 Sales For the Next Year Units Desired Opening Ending Inventory Inventory 6200 5800 10500 11000 12200 14500 Production Required 21400 37000 52000

21000 37500 54300

Work in process Ending 4200 2000 6000 Opening 2000 1800 6400 Production Required 251200 173200 294600

Product Model Moon Glow Enchanting Day Dream Exercise 5

Sales

250000 175000 300000

Product Model 1001 1002 1003 2001 2002 2003

Sales

200 150 425 175 325 215

Magic Enterprises Production Budget For Next six months Units Desired Opening Ending Inventory Inventory 40 25 60 20 35 20

Production Required 50 25 75 15 35 20 190 150 410 180 325 215

Product Model 1001 1002 1003 2001 2002 2003 Total

Magic Enterprises Material Purchase requirement For Next six months Material x Units Material Production in Total Production Required 1 Unit Material Required 190 150 410 180 325 215 5 7 10 4 6 8 950 1050 4100 720 1950 1720 10490 Units 190 150 410 180 325 215

y Material in 1 Unit 2 2 3 1.5 2 2.5

Total Material 380 300 1230 270 650 537.5 3367.5

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Material Production Requirement 10490 3367.5 Desired Ending Inventory 7000 1500 Opening Inventory 5000 2000 Purchase Required 12490 2867.5

X Y

Exercise 6 Provence Company Production Budget Units Opening Inventory 6000 2000 8000 5000 4000 10000

Product Model Tribolite Polycal Powder X

Sales

Desired Ending Inventory

Production Required 81000 38000 98000

80000 40000 100000

Provence Company Material Purchase requirement Material A Production Required 81000 38000 98000 Material in 1 Unit 1 2 0 Units Total Production Material Required 81000 76000 0 157000 Units Opening Inventory 81000 38000 98000 B Material in 1 Unit 2 0 1 Total Material 162000 0 98000 260000

Product Model Tribolite Polycal Powder X Total

Material

Production Requirement 157000 260000

Desired Ending Inventory 12000 15000

Purchase Required Unit Cost 0.2 0.1 Total Purchase Price 31800 26300 58100

A B

10000 12000

159000 263000

Provence Company Manufacturing Cost Budget Tribolite Material A 1 2 0 x x x 0.2 0.2 0.2 0.2

Polycal

Pwdr X

0.4 81000 16200 38000 15200 0 98000 0

Unist to be manufactured Cost of Material A in Total B 2 0 1 x x x 0.1 0.1 0.1

0.2 0 81000 38000 0.1 98000

Unist to be manufactured

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COST ACCOUNTING 9TH EDITION


Cost of Material A in Total Total Cost of Material Labour Cost 16200 32400 0 15200 9800 9800

Hour per Unit Units to be produced Labour Hours

0.05 81000 4050

0.125 38000 4750

0.0125 98000 1225

Rate per Hour Direct Labour Cost

8 32400

8 38000

8 9800

FOH Cost Labour Hours Required FOH Rate Total Cost by Products Total Variable Manufacturing Cost Fixed manufacturing cost (Not allocted to products) Total Manufacturing Cost Exercise 7

4050 6 24300 89100

4750 6 28500 81700 197750 40000 237750

1225 6 7350 26950

Sandersen Inc. Projected Cost of Goods Sold Statement For the Period Ended on Materials: Add Less Add Add Add Less Add Less Beginning Inventory Purchases Material Available for use Ending Inventory Cost of Material Used Labour Factory Overhead Total Factory Cost Beginning Work in process inventory Cost of Goods to be manufactured Ending work in process inventory Cost of goods Manufactured Opening Finished Goods inventory Cost of Goods available for Sale Closing Finished Goods Inventory Cost of Goods Sold (5) $ 500000 2400000 2900000 400000 $

2500000 4340000 1840000 8680000 100000 8780000 300000 8480000 800000 9280000 1000000 8280000

Workings; Earnings(6% of $20000000= $1200000) 10 % of Sales

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Marketing, administrative, and financial expenses 21 31 Cost of goods sold($8280000) 69 100 Cost of Goods sold + Ending Finished Goods InventoryEnding Work in process inventory300000 Labour(50% of manufacturing cost)4340000 Ending materials inventory400000 Beginning Finished goods Inventory $800000 Beginning work in process inventory 100000 Cost of materials consumed = Cost of goods Manufactured = 8480000 total manufacturing cost(materials, labour,and factor overhead) 8680000 factory ovehed % of Sales % of Sales % of Sales % of Sales

Cost of goods manufactured+

8480000 Total manufacturing cost-

8680000 Cost of materials consumed+ 2500000 Exercise 8

2500000 Beginning Materials Inventory 500000 =

1840000 Material purchases

2400000

Starnes Company Budgeted Income Statement For the Second Quarter $ Less Sales (70%) Cost of Goods Sold Gross Profit Operating Expneses Marketing Expenses 72000 Variable Bad Debts 14400 Total Variable Marketing expe Fixed Marketing 48000 Expenses Depreciation 5000 Total Fixed Marketing Expenses Total Marketing Expenses Admn Expenses Variable 34200 Fixed Admn expenses Depreciation 5000 Total Admn Expenses Total Expenses Net profit before taxes $ 720000 504000 216000

86400

53000 139400 21600 39200 60800 200200 15800

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Exercise 9 Sales Assumed Units 1 1.05 Units 1 1.05

Price 1 1.1 Price 1 1.04 1 1.092 1.092 1 1.155 1.155

CGS

Calcor Company Income Statement For the Year ended 19B $ Net Sales Expenses 8400*1.155 Cost of Goods Sold 6300*1.092 Marketing expenses 780+420 Administrative Expneses Interest Expenses 140+30 Total Expenses Income before Income Tax Income Tax Net Income 6879.6 1200 900 170 9149.6 552.4 220.96 331.44 $ 9702

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