About Cost Accounting

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ACCT220BudgetProject.xlsx
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Sheet1

Osbourne Manufacturing: Operations data
Current assets as of December 31 (prior year)
Cash [$$]4,640
Accounts receivable, net [$$]57,600
Inventory [$$]15,600
Property, plant, and equipment, net [$$]121,500
Accounts payable [$$]42,800
Capital stock [$$]124,500
Retained earnings [$$]22,800
December sales info:
Sales [$$]72,000 sales allocation
Unit sales price [$$]12.00 credit 80%
Units sold 6,000 cash 20%
Expected sales for upcoming year: Units sold
January [$$]104,400 8700
February [$$]108,000 9000
March [$$]112,800 9400
April [$$]109,200 9100
May [$$]105,600 8800
1. Cash Collections Budget
January February March Quarter
Cash sales [$$]20,880 [$$]21,600 [$$]22,560 [$$]65,040
Credit sales [$$]83,520 [$$]86,400 [$$]90,240 [$$]260,160
Total cash collections [$$]20,880 [$$]105,120 [$$]108,960 [$$]325,200

Karlyns

Requirement 1
Cash Collections Budget
January February March Quarter
Cash sales 20,880 21,600 22,560 65,040
Credit Sales 57,600 83,520 86,400 227,520 (credit sales from previous month, collected in current month)
Total cash collections 78,480 105,120 108,960 292,560
Requirement 2
Production Budget
January February March Quarter
Unit sales 8700 9000 9400 27100
Plus: Desired ending inventory 900 940 910 2750
Total needed 9600 9940 10310 29850
Less: Beginning inventory 870 900 940 2710
Units to produce 8730 9040 9370 27140
Requirement 3
Direct Materials Budget
January February March Quarter
Units to be produced 8,730 9,040 9,370 27,140
x kg of DM needed per unit 3 3 3 3
Quantity needed (kg) for production 26,190 27,120 28,110 81,420
Plus: Desired ending inventory of DM 8,136 8,433 8,163 24,732
Total quantity (kg) needed 34,326 35,553 36,273 106,152
Less: Beginning inventory of DM 7,857 8,136 8,433 24,426
Quantity (kg) to purchase 26,469 27,417 27,840 81,726
x Cost per kg 2 2 2 2
Total cost of DM purchases 52,938 54,834 55,680 163,452
Requirement 4
Cash Payments for Direct Materials Budget
January February March Quarter
December purchases 42,800 42,800
January Purchases 10,587.60 42,350.40 52,938
February Purchases 10,966.80 43,867.20 54,834
March Purchases 11,136 11,136
Total Cash payments for DM purchases 53,388 53,317 55,003 161,708
Requirement 5
Cash Payments for Conversion Costs Budget
January February March Quarter
Variable conversion costs 9,603 9,944 10,307 29,854
Rent (fixed) 4,500 4,500 4,500 13,500
Other fixed MOH 2,800 2,800 2,800 8,400
Total payments for conversion costs 16,903 17,244 17,607 51,754
Requirement 6
Cash Payments for Operating Expenses Budget
January February March Quarter
Variable operating expenses 11,310 11,700 12,220 35,230
Fixed operating expenses 1,800 1,800 1,800 5,400
Total payments for operating expenses 13,110 13,500 14,020 40,630

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