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Budgeted sales for the third quarter of the year for Brown company are as follows:

Budgeted sales for the third quarter of the year for Brown company are as follows:

July$300,000
August$375,000
September $450.000

The Company normally collects 30% in the month of sale and 65% in the month following the sale. Five percent of all sales are uncollectible and are written off in the following month. The balance in accounts receivable at July 1 was $245,000 which represents 70% of June sales.

Prepare a schedule of cash collections on accounts receivable for the third quarter.
 

E4-2 The adjusted trial balance columns of the worksheet for Goode Company are as follows.

E4-2, E4-3, E4-4 The adjusted trial balance columns of the worksheet for Goode Company are as follows.
GOODE COMPANY
Worksheet (partial)
For the Month Ended April 30, 2008

Adjusted Trial Income - Balance Statement Balance Sheet

Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
Cash 13,752 Accounts Receivable 7,840 Prepaid Rent 2,280 Equipment 23,050 Accumulated Depreciation 4,921 Notes Payable 5,700 Accounts Payable 5,672 Common Stock 25,000 Retained Earnings 5,960 Dividends 3,650 Service Revenue 15,590 Salaries Expense 10,840 Rent Expense 760 Depreciation Expense 671 Interest Expense 57 Interest Payable 57 Totals 62,900 62,900

Instructions
Complete the worksheet.

E4-3 Worksheet data for Goode Company are presented in E4-2. No common stock was issued during April.

Instructions
Prepare an income statement, a retained earnings statement, and a classified balance sheet.

E4-4 Worksheet data for Goode Company are presented in E4-2.
Instructions
(a) Journalize the closing entries at April 30.
(b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts.
(c) Prepare a post-closing trial balance at April 30.
 
xacc-280-E4-2-E4-3-E4-4-Goode-Company.xls File type: application/vnd.ms-excel Peixw: $10

Contribution Margin and Breakeven point Elizabeth McClary recently begin a small snowboard company called Pure Powder.

Contribution Margin and Breakeven point Elizabeth McClary recently begin a small snowboard company called Pure Powder. She and her staff have assembled cost information regarding the snowboard Variable unit cost per (per snowboard):
Direct materials $25
Direct labor 20
Variable manufacturing overhead 7
Variable Selling and administrative 3
Fixed cost( for period):
Fixed manufacturing overhead 24,3000
Fixed selling and administrative 40,-075
The snowboards sell for $180

What is the unit cost contributing margin for snowboard?
What is the breakeven point in units?
Explain what the contribution margin is and why?
 

Plainfield Bakers Inc. Manfacturres and sells a popular line of fat –free cookies under the name Aunt May’s Cookies .

Plainfield Bakers Inc. Manfacturres and sells a popular line of fat –free cookies under the name Aunt May’s Cookies . The process plainfield uses to manufacture the cookies is labor intensive it relies heavily on direct labor .Last year Plainfield sold 300,000 dozens of cookies at $2.50 per dozen .variable cost at the level of production totaled $1.50 per dozen ,and fixed cost for the year totaled $150,000.

Prepare a contribution margin income statement for last year.

Calculate the company’s contribution margin ratio and breakeven point in sales units

Plainfield’ Direct labor rate is going to go $0.40 a dozen next year, assuming that the selling price stays at $ 2.50 a dozen calculate next years contribution margin and break even point in sales units.

Plainfield’s management is thinking about automating the production process ,a change that would reduce variable cost by $0.60 a dozen but would raise fixed costs by $150,000 a year.. If the company undertakes the automatic project how would it contribution margin and breakeven point in sales unit be affected?

Assuming that Plainfield s dose go ahead with the automatic project (see requirement D), how many cookies will the company have to sell at $2.50 dozen to earn the same income last year?

What are some of the nonfinancial aspect of the automatic decision that Plainfield management should considered when deciding whether to embark on the automotive project or not.

Randazzo's cost accountant recently completed a study that associated cost and revenue data with each product listed in the company's catalogue.

Randazzo's cost accountant recently completed a study that associated cost and revenue data with each product listed in the company's catalogue. Exhibit A identifies sales volume, selling prices per unit, and variable costs for a sample of ten products representing the mix manufactured by Randazzo.

In addition to the variable costs indentified in Exhibit A the accountant estimated $600,000 of fixed costs would be associated with the production of these ten products.

Products A, B, C, D, E, F, G, H, I, J
Sales volume in units (x 1,000) 50, 80, 10, 20, 70, 25, 5, 12, 11, 15
Selling price per unit- $12, $15, $2, $10, $15, $10, $2, $5, $5, $6
Variable cost $10, $11, $3, $8, $10, $8, $4, $4, $5, $6

Assume $70,000 of the $600,000 in fixed costs can be saved if products C and G are dropped.

What is the total benefit to the company of dropping the two products?
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