ASHFORD ACC206 WEEK 5 E22-19 P22-22A P23-28A

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 TEXTBOOK: ACCOUNTING 9E HORNGREN 
 E22-19 OLEANNS.COM 
 P22-22A Thumback Office Supply 
 P22-28A

E22-19
 Preparing a financial budget 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 salesi. Other July expenses, including income tax, total $6,000, paid in cash
 j. June 30 cash balance, $11,400
 k. July budgeted credit sales, $12,700l. June 30 accounts receivable balance, $5,140m. July cash receipts, $14,200

P22-22A Preparing an operating budget [30 min]

Thumbtack’s March 31, 2012, budgeted balance sheet follows:

Current assets:		Current liabilities:
Cash	$18,000	Accounts payable	$12,500
Accounts receivable	12,000	Salary and commissions payable	1,400
Inventory	16,000	Total liabilities	$13,900
Prepaid insurance	2,200
Total current assets	$48,200	Stockholders’ Equity
Plant assets:		Common stock	16,000
Equipment and fixtures	45,000	Retained earnings	33,300
Less: Accumulated depreciation	30,000	Total stockholders’ equity	$49,300
Total plant assets	$15,000
Total assets	$63,200	Total liabilities and stockholders’ equity	$63,200

and so on ....

P23-28A Computing and journalizing standard cost variances [45 min]

Java manufactures coffee mugs that it sells to other companies for customizing with
their own logos. Java prepares flexible budgets and uses a standard cost system to
control manufacturing costs. The standard unit cost of a coffee mug is based on static
budget volume of 60,200 coffee mugs per month:

Direct materials (0.2 lbs @ $0.25 per lb)
Direct labor (3 minutes @ $0.12 per minute)
Manufacturing overhead:
Variable (3 minutes @ $0.05 per minute) $ 0.15
$ 0.05
0.36
0.42 0.57
$ 0.98


and so on .......