Becah's Boutique is a retail store carrying a wide selection of designer clothing. Becah's Boutique balance sheet for March 31, 2021, is as follows: Becah's BoutiqueBalance SheetMarch 31, 2021 Assets Current Assets: Cash $17,000 Accounts Receivable $15,900 Merchandise Inventory $48,200 Prepaid Insurance $1,620 Total Current Assets $82,720 Property, Plant & Equipment Equipment & Fixtures $32,200 Less: Accumulated Depreciation ($13,000) $19,200 Total Assets $101,920 Liabilities Current Liabilities: $17,400 Accounts Payable $4,070 Salaries & Commissions Payable $21,470 Total Liabilities Stockholders' Equity Common Stock, no par $19,900 Retained Earnings $60,550 Total Stockholders' Equity $80,450 Total Liabilities and Stockholders' Equity $101,920 The following information is also included: Sales are 70% cash and 30% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted sales for this quarter are: $52,000 in April, $78,000 in May and $61,000 in June. August sales are projected to be $71,000. Beginning Merchandise inventory is on the Balance Sheet. Budgeted Cost of Goods Sold averages 60% of sales. Budgeted Ending Merchandise Inventory is equal to $22,000 plus 80% of the next months Cost of Goods Sold. The monthly payroll for salaries is $2,500 plus commissions equal to 10% of sales. Other monthly costs include: $1,800 per month for rent, $520 for depreciation, $220 for Insurance Expense (from expiration of Prepaid Insurance), and 5% of sales for Miscellaneous Expense. Complete the following budgets for the second quarter.
Becah's Boutique is a retail store carrying a wide selection of designer clothing. Becah's Boutique balance sheet for March 31, 2021, is as follows: Becah's BoutiqueBalance SheetMarch 31, 2021 Assets Current Assets: Cash $17,000 Accounts Receivable $15,900 Merchandise Inventory $48,200 Prepaid Insurance $1,620 Total Current Assets $82,720 Property, Plant & Equipment Equipment & Fixtures $32,200 Less: Accumulated Depreciation ($13,000) $19,200 Total Assets $101,920 Liabilities Current Liabilities: $17,400 Accounts Payable $4,070 Salaries & Commissions Payable $21,470 Total Liabilities Stockholders' Equity Common Stock, no par $19,900 Retained Earnings $60,550 Total Stockholders' Equity $80,450 Total Liabilities and Stockholders' Equity $101,920 The following information is also included: Sales are 70% cash and 30% on account. The balance in the Accounts Receivable account is the sales on account from last quarter. Budgeted sales for this quarter are: $52,000 in April, $78,000 in May and $61,000 in June. August sales are projected to be $71,000. Beginning Merchandise inventory is on the Balance Sheet. Budgeted Cost of Goods Sold averages 60% of sales. Budgeted Ending Merchandise Inventory is equal to $22,000 plus 80% of the next months Cost of Goods Sold. The monthly payroll for salaries is $2,500 plus commissions equal to 10% of sales. Other monthly costs include: $1,800 per month for rent, $520 for depreciation, $220 for Insurance Expense (from expiration of Prepaid Insurance), and 5% of sales for Miscellaneous Expense. Complete the following budgets for the second quarter.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...
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Becah's Boutique is a retail store carrying a wide selection of designer clothing.
Becah's Boutique balance sheet for March 31, 2021, is as follows:
Becah's BoutiqueBalance SheetMarch 31, 2021
Assets | ||
---|---|---|
Current Assets: | ||
Cash | $17,000 | |
$15,900 | ||
Merchandise Inventory | $48,200 | |
Prepaid Insurance | $1,620 | |
Total Current Assets | $82,720 | |
Property, Plant & Equipment | ||
Equipment & Fixtures | $32,200 | |
Less: |
($13,000) | $19,200 |
Total Assets | $101,920 | |
Liabilities | ||
Current Liabilities: | $17,400 | |
Accounts Payable | $4,070 | |
Salaries & Commissions Payable | $21,470 | |
Total Liabilities | ||
Common Stock, no par | $19,900 | |
$60,550 | ||
Total Stockholders' Equity | $80,450 | |
Total Liabilities and Stockholders' Equity | $101,920 |
The following information is also included:
- Sales are 70% cash and 30% on account.
- The balance in the Accounts Receivable account is the sales on account from last quarter.
- Budgeted sales for this quarter are: $52,000 in April, $78,000 in May and $61,000 in June. August sales are projected to be $71,000.
- Beginning Merchandise inventory is on the Balance Sheet. Budgeted Cost of Goods Sold averages 60% of sales.
- Budgeted Ending Merchandise Inventory is equal to $22,000 plus 80% of the next months Cost of Goods Sold.
- The monthly payroll for salaries is $2,500 plus commissions equal to 10% of sales.
- Other monthly costs include: $1,800 per month for rent, $520 for depreciation, $220 for Insurance Expense (from expiration of Prepaid Insurance), and 5% of sales for Miscellaneous Expense.
Complete the following budgets for the second quarter.
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