Question 1 Information: Auto Parts Ltd. Auto Parts Ltd is a worldwide part manufacturing firm based in North America. A
Posted: Sun Jun 05, 2022 8:35 pm
Question 1 Information:
Auto Parts Ltd.
Auto Parts Ltd is a worldwide part manufacturing firm based in
North America. After many years in the market, the
Peterborough division, which produces one product called “Auto
Parts # 857,” reached a spike in the sales level. The
Management wants to have a significant investment to expand the
facility and increase production, but it is requesting the division
prepare a budget for the third quarter of
2022.
The actual
sales from 2022 are
May
52,000 units
June
90,000 units
The division
manager projected the following sales:
July 2022
105,000
units August 2022
225,000 units
September 2022
122,000
units
October 2022
157,000 units
November 2022
162,000 units
The selling price is $12 per unit
Labor $0.60; Indirect materials
$0.40
Janitorial
$2,500
Insurance
$1,750
Depreciation
$15,200
Property Taxes
$2,100
Salaries
$44,800
Three months’ property taxes are prepaid on the first day of the
first month of the quarter.
Salaries
$62,100
Other fixed costs
$4,600
Insurance
$1,200
Depreciation
$2,800
Advertising
$12,000
14.The company has a Common stock
beginning balance is $150,840. The Retained Earnings
Beginning Balance $600,507.
END OF
INFORMATION
Question 1.
Prepare 2022, Third Quarter Master
Budget for Auto Parts Ltd for the including the following
schedules:
Prepare the following Schedules (in this order)
Auto Parts Ltd.
Auto Parts Ltd is a worldwide part manufacturing firm based in
North America. After many years in the market, the
Peterborough division, which produces one product called “Auto
Parts # 857,” reached a spike in the sales level. The
Management wants to have a significant investment to expand the
facility and increase production, but it is requesting the division
prepare a budget for the third quarter of
2022.
The actual
sales from 2022 are
May
52,000 units
June
90,000 units
The division
manager projected the following sales:
July 2022
105,000
units August 2022
225,000 units
September 2022
122,000
units
October 2022
157,000 units
November 2022
162,000 units
The selling price is $12 per unit
Labor $0.60; Indirect materials
$0.40
Janitorial
$2,500
Insurance
$1,750
Depreciation
$15,200
Property Taxes
$2,100
Salaries
$44,800
Three months’ property taxes are prepaid on the first day of the
first month of the quarter.
Salaries
$62,100
Other fixed costs
$4,600
Insurance
$1,200
Depreciation
$2,800
Advertising
$12,000
14.The company has a Common stock
beginning balance is $150,840. The Retained Earnings
Beginning Balance $600,507.
END OF
INFORMATION
Question 1.
Prepare 2022, Third Quarter Master
Budget for Auto Parts Ltd for the including the following
schedules:
Prepare the following Schedules (in this order)