Assi

gnment
sofcostandmanagementaccount
ingl
l

1.YoniCompany
’snewl
yhi
redaccount
anthasper
suadedmanagementt
opr
epar
ea
mast
erbudgett
oaidfi
nancialandoper
ati
ngdeci
sions.Theplanni
nghor
izoni
sonly
t
hreemonths,Januar
yt o March.Sal
esin December( 2015)wereBr.40,000.
Monthl
ysal
esforthefir
stfourmonthsofthenextyear( 2016)ar
efor
ecast
edas
f
oll
ows:
January Br
.50,
000
Februar
y 80,
000
March 60,
000
Apri
l 50,
000
Nor
mal
l
y60% ofsal
esar
eoncashandt
her
emai
nder
sar
ecr
edi
tsal
es.Al
lcr
edi
t
sal
es ar
e coll
ect
ed i
nthe monthfol
lowi
ng t es.Uncol
he sal l
ecti
ble accounts ar
e
negl
igi
bleandaretobei
gnored.
Becausedeli
veri
esfr
om suppl
ier
sandcustomerdemandareuncert
ain,attheendof
anymont
hYoniwant
stohaveabasi
cinvent
oryofBr
.20,000pl
us80% oft
he
expect
edcostofgoodst
obesol
dint
hef
oll
owi
ngmont
h.Thecostofmer
chandi
se
sol
dav
erages70%ofsal
es.Thepur
chaset
ermsav
ail
abl
etot
hecompanyar
enet30
days.Eachmont
h’spur
chasei
spai
dasf
oll
ows:
50%dur
ingt
hemont
hofpur
chaseand,
50%dur
ingt
hemont
hfol
l
owingthepur
chases.
Mont
hlyexpensesar
e:
Wagesandcommi ssi
ons…………………Br .2,500+15%ofsal es,paidasincur
red.
Rentexpense………………………………………. .
Br.2, 000paidasincur
red.
I
nsuranceexpense…………………………………. .
Br.200expirat
ionpermont h.
Depreci
ati
onincl
udingtruck………………………. Br.
500permont h
Miscell
aneousexpense……………………………. 5%ofsal es,pai
dasi ncur
red.

InJanuary,ausedt r
uckwi l
lbepur chasedf .3,000cash.Thecompanywant
orBr sa
minimum cashbal anceofBr .10,000att heendofeachmont h.Yonicanborr
ow
cashorrepayloansi
nmul t
iplesofBr.1,000.Managementpl anstoborrowcashmor e
thannecessaryandt orepayaspr ompt l
yaspossi ble.Assumet hatthebor
rowing
takesplaceatt hebegi
nning,andr epaymentatt heendoft hemonthsinquesti
on.
Int
eresti
spaidwhentherel
atedl oanisr d.Thei
epai nterestrat
eis18%perannum.
 Thecl
osi
ngbal
ancesheetf
ort
hef
iscal
yearj
ustendedatDecember31,
2015,
is:

YoniCompany
BalanceSheet
December31, 2015

ASSETS
Cur
rentassets:
Cash Br
.10,
000
Accountr ecei
v abl e 16,
000
Merchandi seinv entory 48,000
Unexpiredinsur ance 1,
800 Br .75,
800
Pl
antassets:
Equipment ,f
urni tureandother Br.
37,
000
Accumul ateddepr eci
ati
on (
12,800) 24,200
Tot
alassets Br
.100, 000
LI
ABILI
TIESANDOWNERS’
EQUITY

Li
abili
ti
es:
Accountspay abl
e Br
.16,
800
Accruedwagesandcommi ssi
onspay
abl
e 4,
250 Br
.21,
050
Capit
al:
Owner s’equi
ty 78,
950
Totall
iabili
ti
esandowner
s’equit
y Br
.100,000

I
nst
ruct
ions:

Usi
ngt
hedat
agi
venabov
e,pr
epar
ethef
oll
owi
ngdet
ail
edschedul
esf
ort
hef
ir
st
quar
teroft
hey
ear
:
a.Sal
esbudget
b.Cashcol
l
ect
ionbudget
c.Pur
chasebudget
d.Di
sbur
sementf
orpur
chases
e.Oper
ati
ngexpensesbudget
f
.Di
sbur
sementf
oroper
ati
ngexpenses
Usi
ngt
hebudgetdat
agi
venabov
eandt
heschedul
esy
ouhav
epr
epar
ed,const
ructt
he
f
oll
owi
ngpr
ofor
maf
inanci
alst
atement
s
A.I
ncomest
atementf
ort
hef
ir
stquar
teroft
hey
ear
.
B.Cashbudgeti
ncl
udi
ngr
ecei
pts,
pay
ment
s,andef
fectoff
inanci
ng
Bal
ancesheetatMar
ch31,
201
C.Budget
edcashbal
ance

2.Wal eCompanyusesst andar dcostsandaf lexibl

ebudgett ocontroli
tsmanufact
ure
off inechocolates.Operatingdat afort hepastweekar esummarizedasfoll
ows:(
lb=
pound)
Fi
ni shedunitsproduced:5, 000unitsofchocolates.
Directmaterial
s:purchases, 8,
000l bs@ Br15perl b;standardpr
iceisBr.
16perlb.Used
5,400l bsal
lowedpercasepr oduced,1lb.
Directlabor
:act ualhours,8,000hour s@ Br .30.50.standardall
owedpergoodcase
produced,11/ 2hours.Standar dpri
ceperdi r
ectlabor,Br.30
Var i
ablemanuf actur
ingov erhead:actualcostsBr.88,000.Budgetf ormulai
sBr.10per
standarddirectlaborhour.

I
nst
ruct
ions:
A.Mater
ialpurchasepricev ari
ance
B.Materi
alusagev ari
ance
C.Dir
ectlaborratevari
ance
D.Dir
ectlaborusagev ariance
E.Vari
ableoverheadefficiencyvari
ance.
F.Vari
ableoverheadspendi ngv ar
iance.