Week 4 Assignment from the Textbook

ACC/400

November 23, 2015
Shonda Meadows

Exercise BE 23.6

Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A.

Column A

1. Budgeted income statement e. Sales budget

2. Budgeted balance sheet d. Payables budget

3. Cash flow budget a. Direct materials budget

4. Cost of goods sold budget b. Cost of goods sold budget

5. Production budget c. Production budget

Exercise 23.1

The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication:

Direct materials inventory, Jan. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,000
Direct materials inventory, Dec. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000
Direct materials budgeted for use during the year . . . . . . . . . . . . . . . . . . . . . . . . . 264,000
Accounts payable to suppliers of materials, Jan. 1 . . . . . . . . . . . . . . . . . . . . . . . . 46,000
Accounts payable to suppliers of materials, Dec. 31 . . . . . . . . . . . . . . . . . . . . . . . 77,000

Compute the budgeted amounts for:
a. Purchases of direct materials during the year. $252,000
b. Cash payments during the year to suppliers of materials. $233,000

Exercise 23.8

Sales on account for the first two months of the current year are budgeted as follows:

Jan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$800,000
Feb. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880,000

All sales are made on terms of 2/10, n/30 (2% discount if paid in 10 days, full amount by 30