Peyton Accepted Budgeted Steadiness Sheet 30-Jun-15 ASSETS Money $42,000 Accounts receivable 259,900 Uncooked supplies stock 35,650 Completed items stock 241,080 Complete present property 578,630 Gear $720,000 Much less gathered depreciation 240,000 480,000 Complete property $1,058,630 LIABILITIES AND EQUITY Accounts payable $63,400 Quick-term notes payable 24,000 Taxes payable 10,000 Complete present liabilities 97,400 ong-term observe payable 300,000 Complete Liabilities 397,400 Frequent inventory $600,000 Retained earnings 61,230 Complete stockholders’ fairness 661,230 Complete liabilities and fairness $1,058,630 1. Gross sales have been 20,000 items in June 2014. Forecasted gross sales in items are as follows: July, 19,000; August, 21,000; September, 20,000; October, 24,000.
The product’s promoting value is $17.50 per unit and its whole product value is $14.35 per unit. 2. The June 30 completed items stock is 14,700 items. three. Going ahead, firm coverage requires a given month’s ending completed items stock to equal 70% of the following month’s anticipated unit gross sales. four. The June 30 uncooked supplies stock is four,375 items. The budgeted September 30 uncooked supplies stock is 1,980 items. Uncooked supplies value $eight per unit. Every completed unit requires zero.50 items of uncooked supplies. Firm coverage requires a given month’s ending uncooked supplies stock to equal 20% of the following month’s supplies necessities. 5. Every completed unit requires zero.50 hours of direct labor at a charge of $16 per hour. 6. Overhead is allotted based mostly on direct labor hours.
The predetermined variable overhead charge is $1.35 per direct labor hour. Depreciation of $20,000 monthly is handled as mounted manufacturing facility overhead. 7. Month-to-month normal and administrative bills embrace $12,000 administrative salaries and zero.9% month-to-month curiosity on the long-term observe payable. eight. Gross sales representatives’ commissions are 10% of gross sales and are paid within the month of the gross sales. The gross sales supervisor’s month-to-month wage is $three,750 monthly. 9. The corporate expects 30% of gross sales to be for money and the remaining 70% on credit score. Receivables are collected in full within the month following the sale (none are collected within the month of the sale). 10. All uncooked supplies purchases are on credit score, and no payables come up from another transactions. One month’s uncooked supplies purchases are absolutely paid within the subsequent month. 11. Dividends of $20,000 are to be declared and paid in August. 12. Revenue taxes payable at June 30 will probably be paid in July. Revenue tax expense will probably be assessed at 35% within the quarter and paid in October. 13. Gear purchases of $100,000 are budgeted for the final day of September. he minimal ending money steadiness for all months is $40,000. If crucial, the corporate borrows sufficient money utilizing a short-term observe to achieve the minimal. Quick-term notes require an curiosity fee of 1% at every month-end (earlier than any compensation). If the ending money steadiness exceeds the minimal, the surplus will probably be utilized to repaying the short-term notes payable steadiness. Get accounting project homework assist