Accounting

Accounting

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Please complete as follow:

. 1)  Caprice Corporation is a wholesaler of industrial goods. Data regarding the store’s operations follow:  • Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January.
• Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible.
• The cost of goods sold is 70% of sales.
• The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase.
• The November beginning balance in the accounts receivable account is $78,000.
• The November beginning balance in the accounts payable account is $254,000.

. Required:  A Prepare a Schedule of Expected Cash Collections for November and December.

. B. Prepare a Merchandise Purchases Budget for November and December.

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2)  Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows:

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.                                 April            May            June

. Sales…………   50,000        40,000       60,000

. Production… 60,000      50,000       50,000

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. Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $100,000 per month. The accounts payable balance on March 31 totals $190,000, which will be paid in April.  All units are sold on account for $14 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following th month of sale. Accounts receivable on April 1 totaled $500,000 ($90,000 from February’s sales and $410,000 from March’s sales).

.  Required:  A. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation.

. B. Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation.

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3) The Dean Corporation produces and sells a single product. The following data refer to the year just completed:

Beginning Inventory……………………………. 0

Units Produced………………………………….. 20,000

Units Sold………………………………………… 19,000

Selling price per unit……………………………. $350

Selling and administrative expenses:

Variable per unit………………………………… $10

Fixed {total}……………………………………. $225,000

Manufacturing costs:

Direct materials cost per unit………………… $190

Direct labor cost per unit………………………  $40

Variable manufacturing overhead cost per unit…. $25

Fixed manufacturing overhead {total}…………. $250,000

Assume that direct labor is a variable cost.

Required: 

A. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

B.Prepare an income statement for the year using absorption costing.

C. Prepare a contribution format income statement for the year using variable costing.

D. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.