Consider the following June actual ending balances and July 31, 2012, budgeted amounts for Oleans.com

E22-19 Preparing a financial budget [25–30 min]

Consider the following June actual ending balances and July 31, 2012, budgeted amounts for Oleans.com:

a. June 30 inventory balance, $17,750
b. July payments for inventory, $4,300
c. July payments of accounts payable and accrued liabilities, $8,200
d. June 30 accounts payable balance, $10,600
e. June 30 furniture and fixtures balance, $34,500; accumulated depreciation balance, $29,830
f. June 30 equity, $28,360
g. July depreciation expense, $900
h. Cost of goods sold, 50% of sales
i. Other July expenses, including income tax, total $6,000, paid in cash
j. June 30 cash balance, $11,400
k. July budgeted credit sales, $12,700
l. June 30 accounts receivable balance, $5,140
m. July cash receipts, $14,200

Requirement
1. Prepare a budgeted balance sheet.


Click here for the solution: Consider the following June actual ending balances and July 31, 2012, budgeted amounts for Oleans.com

Polaski Inc. uses an actual cost, job order system

Polaski Inc. uses an actual cost, job order system. The following transactions are for August 2010. At the beginning of the month, Direct Material Inventory was $ 2,000, Work in Process Inventory was $ 10,500, and Finished Gods Inventory $ 6,500.

- Direct material purchases on account totaled $ 90,000.
- Direct labor cost for the period totaled $ 75,600 for 8,000 direct labor hours; these costs were paid in cash.
- Actual overhead costs were $ 82,000 and are applied on production.
- The ending inventory of Direct Material Inventory was $ 3,500.
- The ending inventory of Work in Process Inventory was $ 7,750.
- Goods costing $ 243,700 were sold for $ 350,400 cash

a. What was the actual OH rate per direct labor hour?
b. Journalize the preceding transactions.
c. Determine the ending balance in Finished Goods Inventory.


Click here for the solution: Polaski Inc. uses an actual cost, job order system

For Kozy Company, actual sales are $1,540,000 and break-even sales are $1,078,000

For Kozy Company, actual sales are $1,540,000 and break-even sales are $1,078,000.

Compute the margin of safety in dollars and the margin of safety ratio.

Click here for the solution: For Kozy Company, actual sales are $1,540,000 and break-even sales are $1,078,000