Managerial Accounting coursework For Mr. Saif Hossain's class

1. ACT202
Managerial Accounting
Section 03
Course Instructor- Saif Hossain
Summer 2013
Coursework
Samiya Yesmin
11304043
22nd August 2013
Samiya Yesmin
Page 1
8/22/2013

2. ACT202
Hillyard Company
1. Sales Budget
Details
Production Units
SP
Sales
$
$
Jan
3920
100 $
392,000 $
Feb
5880
100
588,000
$
$
Mar
2940
100
294,000
$
$
Quarter
12740
Apr
2940
Quarter
224,000 $
392,000 $
352,800 $
58,800 $
803,600 $
Apr
100 $
1,274,000 $
100
294,000
2. Expected cash collection schedule
Details
Accounts receivable
Jan' sales
Feb.'s sales
Mar's Sales
Total
$
$
Jan
112,000
78,400
$
190,400
$
$
$
Feb
112,000
156,800
117,600
$
386,400
Mar
$
$
$
$
156,800
235,200
58,800
450,800
$
$
$
$
$
235,200
117,600
352,800
3. Production Budget
Details
Budgeted sales units
Jan
3920
Feb
5880
Mar
2940
Quarter
12740
Apr
2940
(+) desired ending inventory
1176
588
588
2352
0
Total units needed
(-) beginning inventory
Required production units
5096
1000
4096
6468
1176
5292
3528
588
2940
15092
2764
12328
2940
588
2352
Samiya Yesmin
Page 2
<-Assumed
8/22/2013

3. ACT202
4. Direct Materials Budget
Details
Production
Materials per unit
Production
(+) desired ending inventory
total ended
(-) beginning inventory
Materials to be purchased
price of materials
Purchase of materials
Jan
$
$
$
$
$
$
$
$
$
4,096 $
2 $
8,192 $
1,058 $
9,250 $
500 $
8,750 $
10 $
87,504 $
Feb
5,292
2
10,584
588
11,172
1,058
10,114
15
151,704
Mar
Quarter
12,328 $
2 $
24,656 $
470 $
25,126 $
500 $
24,626 $
$
325,644 $
Apr
2,352.0
2.0
4,704.0
4,704.0
470.4
4,233.6
15.0
63,504.0
Apr
$
$
$
$
75,852 $
43,218 $
Quarter
93,000
87,504
151,704
43,218
119,070 $
375,426
2,940 $
2 $
5,880 $
470 $
6,350 $
588 $
5,762 $
15
86,436 $
$
$
$
$
$
$
$
$
$
5. Expected cash disbursements for Direct Material
Details
Accounts pay. 12/31
Jan.'s purchases
Feb.'s purchases
Mar.'s purchases
Apr.'s purchases
Total cash disbursements
$
$
$
Jan
93,000
43,752
136,752
Feb
Mar
$
$
43,752
75,852
$
119,604
$
$
$
$
$
$
$
$
$
$
Feb
5,292
2
10,584
4,000
6,584
9
59,256
24,000
83,256
$
$
$
$
$
$
$
$
$
$
$
$
43,218
31,752
43,218
$
$
$
Apr
2352
2
4,704
4,000
704
9
6,336
24,000
30,336
6. Direct Labour Budget
Details
Production
Direct labour hours
Labour hours required
Guaranteed labour hours
extra Labour hours required
Bonus Wage rate
Bonus labour cost
Basic Labour wage (4000*6)
Total Direct Labour
Samiya Yesmin
Jan
$
$
$
$
$
$
$
$
$
4,096
2
8,192
4,000
4,192
9
37,728
24,000
61,728
Mar
Page 3
2,940 $
2 $
5,880 $
4,000 $
1,880 $
9 $
16,920 $
24,000 $
40,920 $
Quarter
12,328
2
24,656
12,000
12,656
9
113,904
72,000
185,904
8/22/2013

4. ACT202
7. Manufacturing Overhead
Details
Direct labour hours
MO labour cost/hour
Variable MOH cost
Fixed MOH
Total MOH
$
$
$
$
Jan
8192
5
40,960
17,000
57,960
$
$
$
$
Feb
10584
5
52,920
17,000
69,920
$
$
$
$
Mar
5880
Quarter
24656
$
$
$
Quarter
48,000 $
1,027,600 $
1,075,600 $
April
(120,340)
352,800
232,460
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
375,426
185,904
174,280
30,000
210,000
49,000
38,220
86,200
45,000
1,194,030
(118,430)
191,000
191,000
1,910
(120,340)
$
$
$
$
$
$
$
43,218
30,336
40,520
10,000
70,000
14,700
8,820
$
$
217,594
14,866
$
14,866
5 $
29,400 $
17,000 $
46,400 $
5
123,280
51,000
174,280
$
$
$
$
Apr
4704
5
23,520
17,000
40,520
8. Cash Budget
Details
Beginning cash balance
(+) cash collections
total cash available
(-) Payments
Direct materials
Direct labour
Manufacturing overhead
Salaries & wages
advertising
shipping
others
Equipment Purchases
Dividend
total cash disbursements
Excess/Deficit if Cash
(+) Loan
(-) Loan Repayment
(-) Interest
Ending Balance
Samiya Yesmin
$
$
$
Jan
48,000
190,400
238,400
$
$
$
$
$
136,752
61,728
57,960
10,000
70,000
$
11,760
$
$
$
$
$
$
$
$
$
Feb
30,200
386,400
416,600
$
$
$
Mar
30,880
450,800
481,680
$
$
$
$
$
$
$
$
119,604
83,256
69,920
10,000
70,000
19,600
17,640
1,700
$
$
$
$
$
$
$
$
119,070
40,920
46,400
10,000
70,000
29,400
8,820
84,500
391,720
24,880
6,000
$
$
409,110
72,570
45,000
393,200 $
(154,800) $
185,000 $
1,850
30,200
$
$
$
60 $
30,880 $
Page 4
191,000
1,910
(120,340)
8/22/2013

5. ACT202
9. Income statement
Sales
(-) Cost of goods sold:
Direct Material
$
Direct Labour
$
Manufacturing Overhead
$
Beginning Goods inventory $
Total COGS
Gross Income
(-) Selling and administrative expenses:
Salaries & Wages
$
Advertising
$
Shipping
$
Other expenses
$
Depreciation
$
$
Interest
Total S&A expense
NET INCOME
(-) Dividend
(+) Retained earnings b/d
Retained earnings c/d
Samiya Yesmin
Hillyard Company
10. Budgeted Balance Sheet
31-Mar
$ 1,274,000
375,426
185,904
174,280
60,000
30,000
210,000
49,000
38,220
42,000
1,910
$
$
$
$
$
$
$
Assets:
Cash
Accounts receivable
Raw Materials Inventory
Finished goods Inventory
Buildings & Equipment
Total Assets
795,610
478,390
Liabilities & Shareholders' Equity:
Accounts payable
Capital Stock
Loan
Retained earnings c/d
Total Liabilities & Equity
371,130
107,260
(45,000)
109,000
171,260
discrepancy
Page 5
$
$
$
$
$
$
(120,340)
450,800
119,070
294,000
456,200
1,199,730
$
$
$
$
371,130
510000
191,000
171,260
1,243,390
$
(43,660)
8/22/2013

6. ACT202
11. Marginal Costing Income Statement
Sales
(-) Cost of goods sold:
Direct Material
$
$
375,426
Variable Direct Labour
$
113,904
Variable Manufacturing Overhead
$
123,280
Beginning Goods inventory
$
1,274,000
60,000
Total COGS
Contribution Margin
(-) Selling and administrative expenses:
Salaries & Wages
Advertising
Shipping
Other expenses
Depreciation
Fixed Manufacturing Overhead
Fixed Direct Labour
Interest
Total S&A expense
NET INCOME
(-) Dividend
(+) Retained earnings b/d
Retained earnings c/d
Samiya Yesmin
Hence we can see that in Marginal costing
method, contribution margin is higher than
gross income by absorption costing system
But net income is same for both as there are
672,610 no ending inventories
$
$
$
$
$
$
$
$
$
$
30,000
210,000
49,000
38,220
42,000
51,000
72,000
1,910
601,390
$
$
$
$
$
494,130
107,260
(45,000)
109,000
171,260
Page 6
8/22/2013