Prepare a cost of goods manufactured schedule

Reference no: EM13764867

Prior year Balance Sheet:

Cash	$35,000	Accounts Payable	$98,000
Accounts Receivable	45,000	Other Current Liabilities	39,000
Materials Inventory	35,000	Income Taxes Payable	21,000
WIP Inventory	25,000
Finished Goods Inventory	32,000	Long-Term Debt	250,000
Prepaid Expenses	15,000
Plant and Equipment	450,000	Common Stock	100,000
Accumulated Depreciation	(120,000)	Retained Earnings	27,000
Other Assets	18,000
Total Assets	$535,000	Total Liab. & Equity	$535,000

Information from recent budgets for the coming year:

1. Projected sales are $1,800,000 (12,690 units)

2. Projected direct material purchases are $500,000

3. Projected direct material usage is $495,000

4. Projected direct labor expense is $400,000

5. Projected overhead is $380,000

6. Projected selling expenses are $120,000

7. Projected administrative expenses are $300,000

8. Projected cash collections are $1,785,000

9. Projected payments for materials (accounts payable) are $520,000

10. Projected payments for other operating expenses (other current liabilities) are $1,130,000

11. Projected depreciation expense is $55,000 and is already included in mfg overhead

Additional information that is available:

1. The expected tax rate is 35%

2. The company is planning a stock issue of $25,000

3. Income taxes are paid 3 months after the year-end

4. The company anticipates purchasing a new patent for $10,000 during the year.

5. WIP inventory is expected to decrease by $2,000

6. Finished goods inventory is expected to increase by $8,000

7. Due to insurance rate increases, it is expected that prepaid expenses will increase by $3,000

Investment information:

1. A purchase of additional equipment for $75,000 is expected on January 1^st.

2. The purchase will be made using $50,000 cash and long-term debt will be increased by $25,000

Long-Term Debt information:

1. All long-term debt will have an 8% annual rate.

2. A payment of $50,000 including BOTH principle and interest will be made on December 31^st.

Required: Prepare a cost of goods manufactured schedule, a proforma income statement and proforma balance sheet.

Reference no: EM13764867

Questions Cloud

Review qualitative inquiry and research design : Review Qualitative Inquiry and Research Design: Choosing Among Five Approaches; the examples of themes in "Stretching" Exercises for Qualitative Researchers.

Problems related to energy consumption : Has your community always used these three power sources? If so, how do you feel this has impacted the environment over time?

Construct a circuit using virtual breadboarding in multisim : Replace the transistor to a PNP transistor and the VCC to -12 V. Repeat Part A through Part C. Part F- Based on your observation and measurement of the components above, describe your conclusion about this the circuit

Telecommunications essentials : THE NEW ERA OF MICROWAVE: WIRELESS BROADBAND

Prepare a cost of goods manufactured schedule : Required: Prepare a cost of goods manufactured schedule, a proforma income statement and proforma balance sheet.

What is your plan for improving skills : Assess your progress and skills with qualitative reasoning and analysis. Where do you still need to improve, and what is your plan for improving those skills?

Recommendations to clients in the area : Consider the following situation: You and two of your very best friends have started an engineering consulting firm. This firm studies advanced principles and makes recommendations to clients in the area of "your specialty here."

Explain blending and adapting the approaches : Explain Blending and Adapting the Approaches. you will take your knowledge a step further by discussing how the approaches might be blended or adapted to suit particular research questions or topics.

What is the likelihood that the mean annual precipitation : What is the probability of getting at least one head - What is the probability of each?

User Account

All Pages