Shooter, Inc. began operations on September 1, 2020The following balances are the ACTUAL TOTALS during 2020 (please be aware that 99.99% of the timeprojected balances are different from what turns out to be actual balances.)Sales - September, 23,000 units, October 21,000 units, November, 22,000 units, December 26,000 unitsProduction - September 28,250 units, October 20,500 units, Nov 22,500 units, December 26,000 unitsPurchases of Raw Material – Sept 172,000 pounds; Oct 105,500 pounds; Nov 117,750 pounds;December 125,125 poundsEnding Inventory (December 31, 2020), Finished Goods - 6,000 unitsEnding Inventory (December 31, 2020), Raw Material – 34,125 poundsAccounts Receivable as of December 31, 2020 - $2,035,600Allowance for Doubtful Accounts as of December 31, 2020 - $128,800Accounts Payable for raw material purchases, December 31, 2020 - $225,225Cash Balance on December 31, 2020 - $483.750Now management for Shooter, Inc. is planning for 2021 and you have been tasked to prepare the masterbudget for the company for January through June 30thEach unit will sell for $140JanuaryFebruaryMarch AprilMayJuneJulyAugForecasted Sales (in units) 24,00019,00026,000 25,000 22,000 23,000 21,00017,000Each unit requires 5 pounds of materialEach unit requires 3 hours of Direct LaborOverhead is applied based on machine hours, each unit requires 2.5 hours of machine timeEach pound of material costs $6Each machine hour costs $10 of overhead of which $1 is depreciationEach Direct Labor hour costs $20Your desired Finished Goods inventory is 25% of next month's salesYour desired Raw Material ending inventory is 30% of next month's usageYour cash collections are 65% during the month of sale, 18% the next month and 10% two months later, 6%three months later, you anticipate never collecting 1%, management policy is to show Bad Debt Expense inthe month the sale occurred and to write off any uncollected account 1 year after the sale occurred. Untilthat time, the amount estimated to never to be collected will appear in Allowance for Doubtful Accounts(go back and look at your 211 stuff)Your cash payments of raw material are 70% the month of purchase and 30% the next monthDecember January February MarchAprilMayJuneAdmin expenses - $460,000 $410,000 $370,000 $480,000 $470,000 $390,000 $400,000$25,000 of administrative expenses are depreciation, 80% of the remaining administrative expenses arepaid in the month incurred, 20% the following month.Taxes are 25% of pre-tax income, all taxes are paid the same month they are incurred.Prepare a master monthly budget for Shooter, Inc. for January through June 30". Your monthly masterbudget should include the following:1. Sales Budget in units and dollars for each month2. Production Budget in units for each month (somewhere near your budget you should calculate cost perunit)3. Direct Labor Budget for each month4. Overhead Budget (remember, some of this is depreciation)5. Purchases Budget for Raw Material for each month6. Administrative Expenses Budget (remember some of this is depreciation)7. Cash Collections Budget for each month8. Cash Disbursements Budget for each month9. Cash Budget for each month10. Income Statement for each month

The master budget is a comprehensive financial planning document. It usually includes all of the…

The following balances are the ACTUAL TOTALS during 2020 (please be aware that 99.99% of the time projected balances are different from what turns out to be actual balances.) Sales – September, 23,000 units, October 21,000 units, November, 22,000 units, December 26,000 units Production - September 28,250 units, October 20,500 units, Nov 22,500 units, December 26,000 units Purchases of Raw Material – Sept 172,000 pounds; Oct 105,500 pounds; Nov 117,750 pounds; December 125,125 pounds Ending Inventory (December 31, 2020), Finished Goods – 6,000 units Ending Inventory (December 31, 2020), Raw Material – 34,125 pounds Accounts Receivable as of December 31, 2020 – $2,035,600 Allowance for Doubtful Accounts as of December 31, 2020 - $128,800 Accounts Payable for raw material purchases, December 31, 2020 – $225,225

The following balances are the ACTUAL TOTALS during 2020 (please be aware that 99.99% of the time projected balances are different from what turns out to be actual balances.) Sales – September, 23,000 units, October 21,000 units, November, 22,000 units, December 26,000 units Production - September 28,250 units, October 20,500 units, Nov 22,500 units, December 26,000 units Purchases of Raw Material – Sept 172,000 pounds; Oct 105,500 pounds; Nov 117,750 pounds; December 125,125 pounds Ending Inventory (December 31, 2020), Finished Goods – 6,000 units Ending Inventory (December 31, 2020), Raw Material – 34,125 pounds Accounts Receivable as of December 31, 2020 – $2,035,600 Allowance for Doubtful Accounts as of December 31, 2020 - $128,800 Accounts Payable for raw material purchases, December 31, 2020 – $225,225

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Shooter, Inc. began operations on September 1, 2020 The following balances are the ACTUAL TOTALS during 2020 (please be aware that 99.99% of the time projected balances are different from what turns out to be actual balances.) Sales – September, 23,000 units, October 21,000 units, November, 22,000 units, December 26,000 units Production – September 28,250 units, October 20,500 units, Nov 22,500 units, December 26,000 units Purchases of Raw Material – Sept 172,000 pounds; Oct 105,500 pounds; Nov 117,750 pounds; December 125,125 pounds Ending Inventory (December 31, 2020), Finished Goods – 6,000 units Ending Inventory (December 31, 2020), Raw Material – 34,125 pounds Accounts Receivable as of December 31, 2020 – $2,035,600 Allowance for Doubtful Accounts as of December 31, 2020 – $128,800 Accounts Payable for raw material purchases, December 31, 2020 – $225,225 Cash Balance on December 31, 2020 – $483,750 Now management for Shooter, Inc. is planning for 2021 and you have been tasked to…
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