BUSINESS COLLEGE

Preparing a Sales Budget Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Sales Budget For the Coming Quarter January February March 1st Quarter Total Units Price $ $ $ $ Sales $ $ $ $

Answers

Answer 1

Answer:

Answer:

Patrick Inc.

Sales Budget

For the First Quarter

January February March Total Quarter 1

Sale Units 41,000 38,000 50,000 129,000

Average Selling Price per Unit $35.00 $35.00 $35.00

Sales Value $1,435,000 $1,330,000 $1,750,000 $4,515,000

Explanation:

The Sales unit for each month is multiplied by its average sales price for e.g for January (41,000 units × by $35 = $ 1,435,000)

The Quarter totals (Units and sales Values in $) are added up to give the answer under the heading of Total Quarter 1.

The working is also attached with the answer.

Answer 2

Answer:

Final answer:

For Patrick Inc., the sales budget for the first quarter is calculated by multiplying the expected units sold each month by the average price per unit. The total sales for the first quarter amount to $4,515,000.

Explanation:

Preparing a sales budget for Patrick Inc. involves multiplying the units sold each month by the price per unit. The average price for a 5-gallon drum of industrial solvent is $35.

For January: 41,000 units * $35/unit = $1,435,000.

For February: 38,000 units * $35/unit = $1,330,000.

For March: 50,000 units * $35/unit = $1,750,000.

Adding these amounts will give the total revenue for the 1st Quarter: $1,435,000 (January) + $1,330,000 (February) + $1,750,000 (March) = $4,515,000.

So, the sales budget for the first quarter would be as follows:
January: $1,435,000
February: $1,330,000
March: $1,750,000
Total first Quarter: $4,515,000.

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Reuben Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value and fair value of $50,000. What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Holmes Company pays $90,000 to acquire 75 percent ownership in Reuben and goodwill of $20,000 is reported

Answers

Answer:

$30,000

Explanation:

Fair value of equity = Fair value of Assets - Fair value of liabilities

Fair value of equity = $150,000 - $50,000

Fair value of equity = $100,000

Holmes Company pays $75,000 to acquire 75% of Equity

Holmes Company pays $15,000 for 75% of goodwill

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Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2013 and $40,000, after adjusting entries, at the end of 2013.Required:1. What is bad debt expense for 2013?2. Determine the amount of accounts receivable written off during 2013.3. If the company uses the direct write-off method, what would bad debt expense be for 2013?

Answers

Answer:

1. $67,500

2. $69,500

3. $69,500

Explanation:

1. The computation of bad debt expense is shown below:-

Bad debt expense = Credit sales × Debt percentage

= $4,500,000 × 1.5%

= $67,500

2. The computation of receivable written off is shown below:-

receivable written off = Allowance Beginning balance + bad debt expense - Allowance ending balance

= $42,000 + $67,500 - $40,000

= $69,500

3. The computation of bad debt expense be for 2013 is shown below:-

= receivable written off

= $69,500

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Answers

Answer: a. pursue differentiation and low cost simultaneously

Explanation:

Value Innovation as a strategy is highly sought after in many industries as it represents an opportunity to acquire more market share whist keeping costs low. This is because with Value innovation, a company invests in technology that will achieve both low costs and differentiation simultaneously.

This is great news for both consumers and the company because consumers get to buy more differentiated products at lower prices and for the company, they will get more customers buying from their brand.

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 28,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 116,000. Units completed and transferred out: 144,000. Ending Inventory: 31,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $46,000. Costs in beginning Work in Process - Conversion: $51,850. Costs incurred in February - Direct Materials: $316,730. Costs incurred in February - Conversion: $602,150. Calculate the cost per equivalent unit of conversion.

Answers

Answer:

Cost per equivalent unit = 4.015 per unit

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Cost per equivalent unit = cost / total equivalent units

To determine the conversion cost per equivalent unit, we follow the steps below

Step 1

Determine the total equivalent units

Items units Equivalent units

Completed units 144,000 144,000× 100% 144,000

Closing inventory 31,500 31,500 × 60% = 18900

Total equivalent unit 162,900

Step 2

Calculate cost per equivalent unit

Cost per equivalent unit = Total conversion cost/Total equivalent units

= (602,150+ 51,850)/162,900 units

= 4.015 per units

Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Bruce works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. With this policy in place, if Bruce works 600 hours, his income will be

Answers

Answer:

Total income= $16,440

Explanation:

Giving the following information:

Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Bruce works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. With this policy in place, if Bruce works 600 hours, his income will be.

Work= 600*6= 3,600

Welfare= 15,000 - (3600*0.60)= 12,840

Total income= $16,440

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Required:
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