Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
It is budgeting time for Rod Co. The following assumptions were agreed upon for the next year after a strategic planning which covered a five-year horizon:
1. Sales are estimated to be at 70,000 units at its national selling price of P126
2. Sales discounts are given to various customers at different rates and net to gross ratio is at 93%
3. Mark-up on merchandise is at 45% of invoice cost. Beginning inventory is P80,900 and is expected to be reduced by P15,000 at the end of the period.
4. Selling and administrative expenses are expected to be 15% of gross sales.
5. Depreciation is computed at P500,000
6. Seventy-five percent (75%) of sales are on credit. Doubtful accounts expense is estimated to be 1.5% of credit sales.
Required:
Problem 1: What is the budgeted income statement for Rod Co.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd