1) Sango Enterprises Accounting Department collects all pertinent monthly operating data. Selected data are presented below for the current month. From the data provided, please provide Sango Enterprises Management with a flexible budget analysis to see how costs were controlled.
| |
Actual Costs Incurred |
Static Budget |
| Activity level (in units) |
6,256 |
6,250 |
| |
|
|
| Variable costs: |
|
|
| Indirect materials |
$23,150 |
$23,050 |
| Utilities |
$22,750 |
$22,900 |
| Fixed costs: |
|
|
| General and administrative |
$62,900 |
$64,950 |
| Rent |
$65,000 |
$63,275 |
2) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year.
| Sales |
1,150 |
| Raw materials inventory, beginning |
15 |
| Raw materials inventory, ending |
40 |
| Purchases of raw materials |
150 |
| Direct labor |
250 |
| Manufacturing overhead |
300 |
| Administrative expenses |
500 |
| Selling expenses |
300 |
| Work in process inventory, beginning |
100 |
| Work in process inventory, ending |
150 |
| Finished goods inventory, beginning |
80 |
| Finished goods inventory, ending |
120 |
Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated? 3)Jiji Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $19,000. Budgeted cash receipts total $177,500 and budgeted cash disbursements total $165,300. The desired ending cash balance is $42,750. The company can borrow up to $110,000 at any time from a local bank, with interest not due until the following month.
Required: Prepare the company's cash budget for November in good form