1 answer

Problem 21-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below....

Question:

Problem 21-6A (Part Level Submission) Krause Industries balance sheet at December 31, 2016, is presented below. KRAUSE INDUSTo meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget show

Problem 21-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Assets Current Assets Cash Accounts receivable Finished goods inventory (1,500 units) $7,500 73,500 25,070 106,070 Total current assets Property, Plant, and Equipment Equipment Less: Accumulated depreciation $40,130 10,660 29,470 Total assets $135,540 Liabilities and Stockholders' Equity Liabilities Notes payable Accounts payable $27,270 46,490 73,760 Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $36,590 25,190 61,780 $135,540 Budgeted data for the year 2017 include the following. Sales budget (8,000 units at $32) Direct materials used Direct labor Manufacturing overhead applied Selling and administrative expenses 2017 Quarter 4 Total $76,800 $256,000 11,550 62,500 12,500 50,900 10,000 49,260 15,630 75,000
To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an $10,410 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2017. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2017, the company expects to purchase additional equipment costing $10,180. $10,823 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,380 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $7,620. Unpaid income taxes at December 31 will be $5,910. Prepare a budgeted statement of cost of goods sold. KRAUSE INDUSTRIES Budgeted Cost of Goods Sold

Answers

co Hnm A I B krause industries Budgeted cost of goos sold for the year ended DEC 31,2017 4 Finished goods inventory 1/1/17 5A BC krause industries Budgeted cost of goos sold for the year ended DEC 31,2017 4 Finished goods inventory 1/1/17 25070 5 co

.

Similar Solved Questions

1 answer
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following...
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per = $43.70 abalone Variable costs per - $10.80 abalone Fixed costs per year Depreciation per year = $462,000 $137,000 Tax rate = 22% The discount rate for th...
1 answer
Newman Corp. sold a machine with an orginal cost of $50,000 and a basis of $20,000...
Newman Corp. sold a machine with an orginal cost of $50,000 and a basis of $20,000 for $14,000. What is the nature of the gain or loss? Explain....
1 answer
Meadow Hills Hospital is a 211-bed acute care hospital w its medical staff. Meadow serves a...
Meadow Hills Hospital is a 211-bed acute care hospital w its medical staff. Meadow serves a population of 300,000. similarly sized hospitals in the region. As an ore are three very well run. It has a good reputation in the communit be technically advanced based on its investments in imagin organizat...
1 answer
How do you factor #3x^4 y - 24xy^4#?
How do you factor #3x^4 y - 24xy^4#?...
1 answer
Cyclopentadiene (C5H6) reacts with itself to form dicyclopentadiene (C10H12). A 0.880 M solution of C5H6 is...
Cyclopentadiene (C5H6) reacts with itself to form dicyclopentadiene (C10H12). A 0.880 M solution of C5H6 is monitored as a function of time as the reaction proceeds. A graph of ln[C6H5] versus time yields a straight line. How many seconds will it take for the [C5H6] to be 0.110 M? The k for the reac...
1 answer
Use principle of Mathematical Induction show statement is true for all natural nunbers n 2+6+ 18+...
Use principle of Mathematical Induction show statement is true for all natural nunbers n 2+6+ 18+ ... +2.3n-1 = 3 - 1...
1 answer
The figure shows a stationary conducting loop adjacent to a vertical current carrying wire. For which...
The figure shows a stationary conducting loop adjacent to a vertical current carrying wire. For which of the following conditions will a clockwise induced current circulate in the stationary loop? Current-carrying wire Stationary conducting loop Clockwise induced current The current in the vertical ...
1 answer
In 2017, the entire fleet of light‑duty vehicles sold in the United States by each manufacturer...
In 2017, the entire fleet of light‑duty vehicles sold in the United States by each manufacturer must emit an average of no more than 86 milligrams per mile (mg/mi) of nitrogen oxides (NOX) and nonmethane organic gas (NMOG) over the useful life ( 150,000 miles of driving) of the vehicle. NOX + ...
1 answer
Convert 764.23 from decimal to hexadecimal, then devise a scheme for converting hexadecimal directly to base...
Convert 764.23 from decimal to hexadecimal, then devise a scheme for converting hexadecimal directly to base 4 and convert your answer to base 4....
1 answer
Essential nutrients Essential nutrients can only be obtained from nutritional supplements. can only be manufactured in...
Essential nutrients Essential nutrients can only be obtained from nutritional supplements. can only be manufactured in the body. can only be obtained from the diet. must always be available in the body for it to sustain life....
1 answer
Power generated by a windmill in watts, is proportional with a constant of proportionality of 5)...
power generated by a windmill in watts, is proportional with a constant of proportionality of 5) to the density of the area swept out by the windmill rotor blade, and the cube of the velocity of the wind. (a) write the given verbal description as where is the power (W), D is the density of the air (...
1 answer
From the edge of the roof of a building. The object reaches the ground being dropped....
from the edge of the roof of a building. The object reaches the ground being dropped. Determine the height of the building. [Take g-9.8m/'s) 2. An object is dropped 2. 5 seconds after...
1 answer
Samantha K Give the organic product: Br HOC2H OC2H5 IV
Samantha K Give the organic product: Br HOC2H OC2H5 IV...
1 answer
Problem 2 For a given network, the average packet length L = 1024 bytes, packets are...
Problem 2 For a given network, the average packet length L = 1024 bytes, packets are arriving with an average rate = 8 pakets/s, the network is used to support voice call services which can tolerate a maximum end-to-end delay of 150 ms, the average end-to-end distance between any two connected nodes...
1 answer
1 nces Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the...
1 nces Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method Hint. It will help to identify each receivable and payablo, for example, record the purchase on August 1 in Accounts Payable Aron Aug 1 Purc...