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the year. In addition, what is the impact on the financial statements if the
ending finished goods inventory is overstated or understated? (Points :
25)
Question 4.4. (TCO F) Walker Corporation is preparing its cash budget
for November. The budgeted beginning cash balance is $43,000.
Budgeted cash receipts total $117,000 and budgeted cash disbursements
total $122,000. The desired ending cash balance is $55,000. The
company can borrow up to $100,000 at any time from a local bank, with
interest not due until the following month.
Required:
Prepare the company's cash budget for November in good form. Make
sure to indicate what borrowing, if any, would be needed to attain the
desired ending cash balance(Points : 25) Question 5.5. (TCO F) The
following overhead data are for a department of a large company.
Actual Costs Incurred Static Budget
Activity level (in units) 360 340
Variable costs:
Indirect materials $4,182 $4,148
Electricity $2,536 $2,414
Fixed costs:
Administration $6,540 $6,500
Rent $6,310 $6,400
Required: Construct a flexible budget performance report that would be
useful in assessing how well costs were controlled in this department.
(Points : 25)
Question 6.6. (TCO H) McMullen Co. uses 10,000 units of Part X
each year as a component in the assembly of one of its products. The
company is presently producing Part X internally at a total cost of
$125,000 as follows.
Direct materials $40,000
Direct labor 30,000
Variable manufacturing overhead 25,000
Fixed manufacturing overhead 30,000