ACCT 344 WEEK 6 HOMEWORK

ACCT 344 WEEK 6 HOMEWORK

ACCT 344 Week 6 Homework,

The following information is used for Lucky's Inc.’s monthly master budget.

June's balance sheet balances:
	Cash	$10,500			Accounts payable				$53,760
	Accounts receivable	$80,000			Capital stock				$260,000
	Inventory	$26,000			Retained earnings				$2,740
	Building and equipment (net)	$200,000
Actual sales for June and budgeted sales for July, August, and September:
	June (actual)		$140,000
	July (budget)		$320,000
	August (budget)		$180,000
	September (budget)		$200,000

Sales are 25% cash and 75% on credit. All credit sales are collected in the following month. There are no bad debts.

Gross margin percentage is 60% of sales.

The desired ending inventory is expected to be 20% of the following month's cost of goods sold. One fifth of the purchases are paid for in the month of purchase, and the remaining balance is purchased on credit and paid in the following month.

The monthly cash operating expenses are $80,000, including the monthly depreciation expense of $7,000.

During July, Lucky's Inc. will purchase new office equipment for $17,000 cash

The Sparkly Corporation has the following budget and actual results.

http://www.homeworkproviders.com/shop/acct-344-week-6-homework/

Budgeted data
Unit sales		30,000
Unit production		30,000
Fixed overhead
	Supervision	$54,000
	Depreciation	$60,000
	Rent	$30,000
Variable costs per unit
	Direct materials	$18.00
	Direct labor	$25.00
	Supplies	$0.25
	Indirect labor	$1.20
	Electricity	$0.15

Actual results
Unit sales		33,000
Unit production		36,000
Fixed overhead
	Supervision	$53,550
	Depreciation	$60,000
	Rent	$30,000
Variable costs
	Direct materials	$642,000
	Direct labor	$960,000
	Supplies	$7,500
	Indirect labor	$30,000
	Electricity	$4,500

Required:
a. Prepare a performance report for all costs, showing static budget variances (indicate F or U).
b. Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).

ACCT 344 WEEK 6 HOMEWORK