ACC 206 Week 4 Assignment: Chapter 6 and 7 Problems..
ACC 206 Week four Task: Chapter 6 and seven ProblemsPlease full the next workouts beneath in both Excel or a phrase doc (however should be single doc). It's essential to present your work the place acceptable (leaving the calculations inside Excel cells is appropriate). Save the doc, and submit it within the acceptable week utilizing the Task Submission button.Chapter 6 Downside 31. Complete budgetingThe steadiness sheet of Watson Firm as of December 31, 20X1, follows.WATSON COMPANYBalance SheetDecember 31, 12X1AssetsCash$four,595Accounts receivable10,000Finished items (575 items x $7.00)four,zero25Direct supplies (2,760 items x $zero.50)1,380Plant & gear$50,000Less: Collected depreciation10,00040,000Total belongings$60,000Liabilities & Stockholders' EquityAccounts payable to suppliers$14,000Common inventory$25,000Retained earnings21,00046,000Total liabilities &. stockholders' fairness$60,000The following info has been extracted from the agency's accounting information:1.All gross sales are made on account at $20 per unit. Sixty p.c of the gross sales are collected within the month of sale; the remaining 40% are collected within the following month. Forecasted gross sales for the primary 5 months of 20X2 are: January, 1,500 items,- February, 1,600 items; March, 1,800 items; April, 2,00zero items; Could, 2,100 items.2.Administration desires to keep up the completed items stock at 30% of the next month's gross sales.three.Watson makes use of 4 items of direct materials in every completed unit. The direct materials value has been steady and is anticipated to stay so over the subsequent six months. Administration desires to keep up the ending direct supplies stock at 60% of the next month's manufacturing wants.four.Seventy p.c of all purchases are paid within the month of buy; the remaining 30% are paid within the subsequent month.5.Watson's product requires 30 minutes of direct labor time. Every hour of direct labor prices $7.Directions:a.Rounding computations to the closest greenback, put together the next for January by way of March:1) Gross sales budget2) Schedule of money collections3) Manufacturing budget4) Direct materials purchases budget5) Schedule of money disbursements for materials purchases6) Direct labor budgetb.Decide the balances within the following accounts as of March 31:1) Accounts Receivable2) Direct Materials3) Accounts PayableChapter 7 Downside 12.Primary versatile budgetingCentron, Inc., has the next budgeted manufacturing prices:Direct supplies$zero.40 per unitDirect labor1.80 per unitVariable manufacturing facility overhead2.20 per unitFixed manufacturing facility overheadSupervision$24,000Maintenance18,000Other12,000The firm usually manufactures between 20,00zero and 25,00zero items every quarter. Ought to output exceed 25,00zero items, upkeep and different fastened prices are anticipated to extend by $6,00zero and $four,500, respectively.Through the latest quarter ended March 31, Centron produced 25,500 items and incurred the next prices:Direct Supplies$10,710Direct Labor47,175Variable manufacturing facility overhead51,940Mounted manufacturing facility overheadSupervision24,500Upkeep23,700Different16,800Whole manufacturing prices$174,825Directions:a.Put together a versatile price range for 20,00zero, 22,500, and 25,00zero items of exercise.b.Was Centron's expertise within the quarter cited higher or worse than anticipated? Put together an acceptable efficiency report and clarify your reply.c.Clarify the advantage of utilizing versatile budgets (versus static budgets) within the measurement of efficiency.Chapter 7 Downside 53.Easy variance analysisArrow Enterprises makes use of a regular costing system. The usual value sheet for product no. 549 follows.Direct supplies: four items @ $6.50$26.00Direct labor: eight hours @ $eight.5068Variable manufacturing facility overhead: eight hours@ $7.0056Mounted manufacturing facility overhead: eight hours@ 2.520Whole commonplace value per unit$170.00The next info pertains to exercise for December:1.Direct supplies acquired in the course of the month amounted to 26,350 items at $6.40 per unit. All supplies have been consumed in operations.2.Arrow incurred a mean wage fee of $eight.75 for 51,400 hours of exercise.three.Whole overhead incurred amounted to $508,400. Budgeted fastened overhead totals $1.eight million and is unfold evenly all year long.four.Precise manufacturing amounted to six,500 accomplished items.Directions:a.Compute Arrow's direct materials variances.b.Compute Arrow's direct labor variances.c.Compute Arrow's variances for manufacturing facility overhead.