# Managerial accounting 6 | Accounting homework help

Description

Managerial Accounting focuses heavily on finding solutions to numerical problems. With that in mind, most units will include a number of problems. For each problem, you will need to provide more than a simple numerical response. Your solutions should thoroughly address the issue and present the findings in a meaningful format similar to those developed within the chapters and as part of the review exercises solutions. Part value may be assigned for incorrect responses.

##### Question 1: (30 marks)

For the second quarter of the following year Cloaks Company has projected sales and production in units as follows:

Jan

Feb

Mar

Sales

49,000

51,000

56,000

Production

53,000

48,000

49,000

Cash-related production costs are budgeted at \$7 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the next month. \$95,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals \$185,000, which will be paid in Feb.

All units are sold on account for \$13 each. Cash collections from sales are budgeted at 55% in the month of sale, 25% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. On January 1 accounts receivable totaled \$500,000 (\$90,000 from November’s sales and the remaining from January).

Required:

1)     Prepare a schedule for each month showing budgeted cash disbursements for Cloaks Company.

2)     Prepare a schedule for each month showing budgeted cash receipts for Cloaks Company.

##### Question 2: (36 marks)

A merchandising firm by the name of Star Wars Enterprises, had an inventory of 42,000 units on March 31, and it had accounts receivable totaling \$83,500. Sales, in units, have been budgeted as follows for the next four months:

April

55,000

May

65,000

June

81,000

July

79,000

To be enforced in April, Star Wars board of directors has established a policy that states that the inventory at the end of each month should contain 35% of the units required for the following month’s budgeted sales.  \$2.5 is the selling price per unit. One-Quarter of sales are paid for by customers in the month of the sale; the balance is collected in the following month.

Required:

1)         Prepare a merchandise purchases budget showing how many units should be purchased for

each of the months April, May, and June.

2)          Prepare a schedule of expected cash collections for each of the months April, May, and June.

##### Question 3: (24 marks)

Fonsey Corporation, a merchandising company, has provided the following budget data:

Purchases

Sales

PuMonth

\$39,500

\$69,000

January

47,200

65,900

February

37,500

61,200

March

55,000

79,850

April

59,500

66,100

May

Collections from customers are normally 65% in the month of sale, 22% in the month following the sale, and 11% in the second month following the sale. It is expected that the balance be uncollectible. Fonsey pays for purchases in the month following the purchase. Cash disbursements for expenses other than merchandise purchases are expected to be \$13,300 for May. Fonsey’s cash balance on May 1 was \$21,500.

Required:

1)          Compute the expected cash collections during May.

2)          Compute the expected cash balance on May 31.

##### Question 4: (10 marks)

Five years ago, Phil Coulson left his position at a large company to start Coulson Spy Solutions Co. (CSS), a software design and tracking company. CSS’s first product was a unique software package that seamlessly integrates networked PCs. Robust sales of this initial product permitted the company to begin development of other software products and to hire additional personnel. The staff at CSS quickly grew from three people working out of Phil’s basement to more than 70 individuals working in leased spaces at an industrial park. Continued growth led Coulson to hire seasoned marketing, distribution, and production managers and an experienced accountant.

Recently, Coulson decided that the company had become too large to run on an informal basis and that a formalized planning and control program centered around a budget was necessary. Coulson asked the accountant, Maria Hill, to work with him in developing the initial budget for CSS.

Coulson forecasted sales revenues based on his projections for both the market growth for the initial software and successful completion of new products. Hill used this data to construct the master budget for the company, which she then broke down into departmental budgets. Coulson and Hill met a number of times over a three-week period to hammer out the details of the budgets.

When Coulson and Hill were satisfied with their work, the various departmental budgets were distributed to the department managers with a cover letter explaining CSS’s new budgeting system. The letter requested everyone’s assistance in working together to achieve the budget objectives. Several of the department managers were displeased with how the budgeting process was undertaken. In discussing the situation among themselves, they felt that some of the budget projections were overly optimistic and not realistically attainable.

Required:

1)             How does the budgeting process Coulson and Hill used at CSS differ from recommended practice?

2)             What are the behavioural implications of the way Coulson and Hill went about preparing the master budget

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.