Question

Prepare and submit (IN PROPER FORM) a budgeted balance sheet for June 30 and a budgeted income/retained earnings statement for the three months ending June 30. Someone please help me with my managerial accounting homework! The assignment is as follows and I have all the info needed attached. Just in the regular format it doesn't matter! Please Help! Assignment:
DIRECT MATERIALS BUDGET Additional data: • 5 pounds of material are required per unit of product. • Management desires to have materials on hand at the end of each month equal to 10% of the following month's production needs. • The beginning materials inventory was 13,000 pounds. • The material costs $0.40 per pound. April May June Quarter Required production in units .... 26,000 46,000 29,000 101,000 Raw materials per unit (pounds) X 5 X 5 X 5 x 5 Production needs (pounds) ...... 130,000 230,000 145,000 505,000 Add desired ending inventory (pounds)* ........ .. 23.000 14,500 11,500 11,500 Total needs (pounds).. ............ 153,000 244,500 156,500 516,500 Less beginning inventory (pounds) .... 13,000 23,000 14,500 13.000 Raw materials to be purchased (pounds) ........ ...... 140,000 221,500 142,000 503,500 Cost of raw materials to be purchased at $0.40 per pound $56,000 $88,600 $56,800 $201,400 * For June: 23,000 units produced in July 5 pounds per unit = 115,000 pounds; 115,000 pounds x 10% = 11,500 pounds June 30 raw materials inventory 11,500 pounds

Answer 1

Answer is given below

Regarding Debtors uncollectible amount it has been shown as Bad debts and a separate line in Income Statement

Royal Company Budgeted Income Statement For the Month ended June 30 Sales $1,000,000 Less $500,000 $500,000 $260,000 $50,000 Cost of Goods Sold ( 100,000 X $5) Gross profit Selling and administration expenses Bad Debts Profit Before Interest $190,000 $1,500 $188,500 Interest on Short term loan Net Income Royal Company Budgeted Balance Sheet As on June 30 Assets Current Assets $43,500 $75,000 $4,600 $25,000 Cash Accounts receivable Raw material inventory (11,500 X $0.40) Finished goods inventory (5,000 x $5) $148,100 Fixed Assets $400,000 $1,610,000 $192,500 $1,802,500 Land Building and Equipment Additions during the quarter $1,361,000 $1,509,100 Less : Depreciation during the quarter -$841,500 Total Assets Total Liabilities and Shareholders Equity Current liabilities Accounts payable $28,400 Stockholders' equity Common Stock Retained earnings $200,000 $1,280,700 $1,480,700 $1,509,100 Total Liabilities and Stockholders' Equity Budgeted Statement of Retained Earnings Retained earnings - Opening Balance Add: Net profit $1,143 $188,500 $1,331,700 -$51,000 Less: Dividend $1,280,700 Retained earnings - Closing Balance Accounts receivable closing balance Opening Balance Add:Sales $30,000 $1,000,000 -$50,000 -$905,000 $75,000 Less: Bad Debts Less: Collection Closing Balance Accounts payable closing balance Opening Balance Add: Purchases Less: Payment Closing Balance $12,000 $201,400 -$185,000 $28,400