Prepare a master budget and all supporting budgets

Assignment Help Cost Accounting
Reference no: EM13553543

The Garden Ornament Company manufactures two types of garden ornament: a duck and a heron. The information presented in Tables T1 to T5 has been prepared, as a result of discussions by line managers, for the purposes of preparing a master budget for Year 6.

Sales and production volumes and direct costs

(T1)

 

Ducks

Herons

Unit sales for the year

8,000

15,000

 

£

£

Unit selling price

30

45

Unit variable cost:

 

 

Direct material

14

16

Direct labour

12

13

Direct labour costs are based on an average cost of £15,000 per person per year.

Other costs

(T2)

Production heat and light

£8,000 for the year

Production fixed overheads

£4,000 for the year

Partners' salaries

£55,000 for the year

Rent of premises

£11,000 for the year

Office staff salaries

£48,450 for the year

Marketing and distribution

18 per cent of sales

Working capital targets

(T3)

Debtors at end of year

Half of one month's sales.

Trade creditors for materials

One month's purchases.

Stock of raw materials

Enough for 60 per cent of next month's production.

Stock of finished goods

No stock held, as goods are made to order and delivered to the customer on completion.

Sales and purchases are planned to be spread evenly over the year.

Capital budget plans

(T4)

Purchase one new moulding machine at £70,000, at the start of the year.

Depreciate all machinery for a full year at 20% per annum on a straight-line basis.

Balance sheet at 31 December Year 5

(T5)

 

£

£

Equipment at cost

 

190,000

Accumulated depreciation

 

40,000

Net book value

 

150,000

Stock of raw materials:

 

 

For 400 ducks @ £14 each

5,600

 

For 750 herons @ £16 each

12,000

 

Trade debtors

32,000

 

Cash

2,500

 

 

52,100

 

Trade creditors

30,000

 

 

 

22,100

 

 

172,100

Partners' capital

 

172,100

Required

Prepare a master budget and all supporting budgets.

Reference no: EM13553543

Questions Cloud

Determine the frequency of oscillation : An electric dipole attached to a massless rod of length b is placed in a uniform electric field E. Find the natural frequency of oscillation if the dipole is slightly rotated from its equilibrium position and released.
Difference between absorption costing and variablting : What is the basic difference between absorption costing and variablting? Explain how fixed manufacturing overhead costs are shifted from one period to another under absorpti sting.
What is the pressure of the water at the bottom of the hill : Water in a pipe runs down a 20 m high hill. If the speed of the water on the top of the hill is 5.0 m/s and its pressure is 150 kPa, what is the pressure of the water at the bottom of the hill
One-dimensional time-independent schrondinger equation : The one-dimensional parity operator pi is defined by pi psi (x) = psi (-x) In other words, pi changes x into –x everywhere in the function. Is pi a Hermitian operator? For what potentials V(x) is it possible to find a set of wavefunctions which are e..
Prepare a master budget and all supporting budgets : Prepare a master budget and all supporting budgets - discussions by line managers, for the purposes of preparing a master budget for Year 6.
How much energy does this engine extract : Two energy reservoirs are at 20 degrees Celsius and 827 degrees Celsius. How much energy does this engine extract from the hot reservoir to do 3500 J of work
Calculate the erp effective rate of protection : Calculate  the ERP (effective rate of protection)
Relating to blackbody spectrum-photoelectric effect : The fundamental physical constant of quantum mechanics, h, has played an important role in each of the three theoretical advances (those relating to the blackbody spectrum, the photoelectric effect, and the structure of the H atom).
Journalizing and posting : Enter a debit balance of $1,500 as of May 1, 2014. Place a check mark (?) in the Posting Reference column.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd