Akash M

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Use the following data for problems 10-12: Barth Company is preparing the operating budget for the first quarter of 2024. They forecast sales of $75,000 in January, $80,000 in February, and $85,000 in March. Cost of goods sold is budgeted at 45% of Sales. Variable and fixed expenses are as follows: Variable: Miscellaneous expenses: 22% of Sales Fixed: Salary expense: $15,000 per month Rent expense: $3,000 per month Depreciation expense: $2,000 per month Miscellaneous expenses/fixed portion: $1,000 per month Use the following grid for your calculations: Budgeted Income Statement Sales Revenue Less: COGS (45% of sales) = Gross Profit Less Variable Expenses = Contribution Margin Less: Fixed Expenses Salary expense Rent expense Depreciation expense Misc. expenses = Operating Income/(Loss) JANUARY FBRUARY MARCH 10) What is the budgeted operating income/(loss) for January? 11) What is the budgeted operating income/(loss) for February? 12) What is the budgeted operating income/(loss) for March?

          Use the following data for problems 10-12:
Barth Company is preparing the operating budget for the first quarter of 2024. They forecast
sales of $75,000 in January, $80,000 in February, and $85,000 in March. Cost of goods sold is
budgeted at 45% of Sales. Variable and fixed expenses are as follows:
Variable: Miscellaneous expenses: 22% of Sales
Fixed:
Salary expense: $15,000 per month
Rent expense: $3,000 per month
Depreciation expense: $2,000 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Use the following grid for your calculations:
Budgeted Income Statement
Sales Revenue
Less: COGS (45% of sales)
= Gross Profit
Less Variable Expenses
= Contribution Margin
Less: Fixed Expenses
Salary expense
Rent expense
Depreciation expense
Misc. expenses
= Operating Income/(Loss)
JANUARY
FBRUARY
MARCH
10) What is the budgeted operating income/(loss) for January?
11) What is the budgeted operating income/(loss) for February?
12) What is the budgeted operating income/(loss) for March?

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Use the following data for problems 10-12:
Barth Company is preparing the operating budget for the first quarter of 2024. They forecast
sales of 75,000 in January,80,000 in February, and 85,000 in March. Cost of goods sold is
budgeted at 45% of Sales. Variable and fixed expenses are as follows:
Variable: Miscellaneous expenses: 22% of Sales
Fixed:
Salary expense:15,000 per month
Rent expense: 3,000 per month
Depreciation expense:2,000 per month
Miscellaneous expenses/fixed portion: 1,000 per month
Use the following grid for your calculations:
Budgeted Income Statement
Sales Revenue
Less: COGS (45% of sales)
= Gross Profit
Less Variable Expenses
= Contribution Margin
Less: Fixed Expenses
Salary expense
Rent expense
Depreciation expense
Misc. expenses
= Operating Income/(Loss)
JANUARY
FBRUARY
MARCH
10) What is the budgeted operating income/(loss) for January?
11) What is the budgeted operating income/(loss) for February?
12) What is the budgeted operating income/(loss) for March?

Added by Guillermo M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

06/09/2023

Step 1

- January: $75,000 * 45% = $33,750 - February: $80,000 * 45% = $36,000 - March: $85,000 * 45% = $38,250 Show more…

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Use the following data for problems 10 - 12: Barth Company is preparing the operating budget for the first quarter of 2024. They forecast sales of $75,000 in January, $80,000 in February, and $85,000 in March. Cost of goods sold is budgeted at 45% of Sales. Variable and fixed expenses are as follows: Variable: Miscellaneous expenses: 22% of Sales Fixed: Salary expense: $15,000 per month Rent expense: $3,000 per month Depreciation expense: $2,000 per month Miscellaneous expenses/fixed portion: $1,000 Use the following grid for your calculations: Budgeted Income Statement Sales Revenue Less: COGS (45% of sales) = Gross Profit Less Variable Expenses = Contribution Margin Less: Fixed Expenses Salary expense Rent expense Depreciation expense Misc. expenses JANUARY per month FEBRUARY = Operating Income/(Loss) 10) What is the budgeted operating income/(loss) for January? 11) What is the budgeted operating income/(loss) for February? 12) What is the budgeted operating income/(loss) for March? MARCH

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Transcript

00:04 To calculate the budgeted cash collection in march, we need to determine the cash sales and credit sales for the month of march.

00:43 So, the budgeted sales in the march is b cash sales which is 20 % of the total sale which is into 0 .20 which is equals to the p1 ,12 ,000.

01:49 So next is the credit sales which is equals to p4 ,48 ,000.

02:22 Now let's calculate the collecting the patent for the credit sale.

02:27 So 30 % of in the month of sale, now let's collect collection patent for credit sales.

02:49 30 % in the month of sale which is equals to 40 % in the month after the month of sale which is equals to into 0 .40 which is equals to p1 ,179 ,200.

04:11 So next is the 25 % of the second month after the month of sale which is p into 0 .25 equals to p1 ,12 ,000.

04:56 So finally we add up the collection cash collections for the march.

05:00 So the cash collection in march is equals to p1 ,34 ,400 which is from the month of the sale plus p1 ,79 ,200 which is from the month after the month of the sale plus p1 ,12 ,000 which is from the second month after the month of the sale.

05:44 So the total collection is cash collection is equals to p4 ,25 ,600.

06:08 So therefore the budgeted cash collection in march for the sales made in the march is p4 ,25 ,600.

06:19 So next we have to find to calculate the budgeted cash receipts for the month of the april.

07:03 So we need to consider cash sales collection from credit sales made in the previous month and any other cash receipts...

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