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Irina18 [472]
3 years ago
15

The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light manufactures two different prod

ucts - night lights and desk lamps. Night lights is budgeted for 60,000 units. Each night light requires 1/2 hour of direct labor. Desk lamps is budgeted for 80,000 units. Each desk lamp requires 2 hours of direct labor. Determine the total number of budgeted direct labor hours for year.
Business
1 answer:
AveGali [126]3 years ago
3 0

Answer:

Explanation:

Budgeted direct labor hour is defined as the average time it will take to complete a budgeted production . This is calculated by multiplying the budgeted production by the labor hour per unit of production.

Workings

Total overhead budget = 807,500

Night light budgeted production = 60,000

Desk lamp budgeted production= 80,000

Night lamp production = 1/2 hour / unit

Desk lamp production = 2 hour / unit

Night light budgeted hour = 60000*1/5 = 30,000 hours

Desk lamp budgeted hour  = 80,000 * 2 = 160,000 hours

Total number of budgeted direct labor hours = 190,000 hours

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Philip Morris expects the sales for his clothing company to be $670,000 next year. Philip notes that net assets (Assets − Liabil
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Answer:

the ending cash balance is $330,300

Explanation:

The computation of the ending cash balance is shown below:

Ending cash balance = Opening cash balance + Profit

= $270,000 + (9% × $670,000)

= $270,000 + $60,300

= $330,300

We simply added the opening cash balance and the profit so that the ending cash balance could come

Hence, the ending cash balance is $330,300

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2 years ago
The following information is available for two different types of businesses for the 2014 accounting period. Lewis CPAs is a ser
gayaneshka [121]

Answer:

a-1) Lewis CPAs Income Statement:

Service Revenue              $60,000

Salary Expense                -$40,000

Net Income                       $20,000

a-2) Lewis CPAs Balance Sheet:

Cash                                  $100,000

Total Assets                     $100,000

Liabilities + Equity:

Bank Loan                          $80,000

Retained Earnings             $20,000

Total Liabilities + Equity $100,000

a-3) Lewis CPAs Statement of Cash Flows:

Cash from customers                      $60,000

Cash to suppliers of labor              -$40,000

Net Cash from operating activities $20,000

Bank Loan                                        $80,000

Total Cash inflows                          $100,000

a-4) Casual Clothing Income Statement

Sales                   $60,000

Cost of Sales      -$32,000

Gross Profit        $28,000

Operating Exp    -$7,200

Net Income         $20,800

a-5) Casual Clothing Balance Sheet:

Cash                                 $82,800

Inventory                           $18,000

Total Assets                   $100,800

Liabilities + Equity:

Bank Loan                         $80,000

Retained Earnings            $20,800

Total Liabilities + Equity $100,800

a-6) Casual Clothing Statement of Cash Flows:

Cash from customers                    $60,000

Cash to suppliers                          -$50,000

Operating Expenses                       -$7,200

Net Cash from operating activities $2,800

Bank Loan                                      $80,000

Total Cash inflows                         $82,800

b) Casual Clothing has product costs.  While Lewis CPAs has service costs.

Explanation:

a) Revenue from Customers:  Lewis CPAs as a service business does not have sales as revenue from customers.  Its revenue from customers is described as Service Revenue.  For Casual Clothing, its revenue from customers is typically described as Sales.

b) Cost of Goods Sold: Lewis CPAs has cost of goods sold in the form of salaries paid to providers of labor, while Casual Clothing's cost of goods sold is in the form of inventory.   Therefore, there is always inventory either at the beginning or at the ending of the business period.

c) Ending Inventory for Casual Clothing is determined as follows:

Purchase =             $50,000

Cost of Sales =     -$32,000

Ending Inventory = $18,000

d) Cash Balances:

i) Lewis CPAs:

Bank Loan =                    $80,000

Cash from customers =  $60,000

Salary Expense=            -$40,000

Balance =                       $100,000

ii) Casual Clothing:

Bank Loan =                     $80,000

Purchases =                    -$50,000

Cash from customers =  $60,000

Operating Expense=        -$7,200

Balance =                        $82,800

e) The Net Income in each case is treated as Retained Earnings since there are no other charge against it.

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Flipco signed a 15​-year note payable on January​ 1, 2018​, of $900,000. The note requires annual principal payments each Decemb
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