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Question - ACC 206 week 4 assignments
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ACC 206 Week 4 Assignment Please complete the following exercises below in either Excel or a
word document (but must be single document). You must show your work where appropriate (leaving
the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate
week using the Assignment Submission button. 1. Comprehensive budgeting The balance sheet of
Watson Company as of December 31, 20X1, follows. WATSON COMPANY Balance Sheet December
31, 12X1 Assets Cash $4,595 Accounts receivable 10,000 Finished goods (575 units x $7.00) 4,025
Direct materials (2,760 units x $0.50) 1,380 Plant & equipment $50,000 Less: Accumulated
depreciation 10,000 40,000 Total ass ...Read More ets $60,000 Liabilities & Stockholders' Equity Accounts payable
to suppliers $14,000 Common stock $25,000 Retained earnings 21,000 46,000 Total liabilities &.
stockholders' equity $60,000 The following information has been extracted from the firm's accounting
records: All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the
month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first
five months of 20X2 are: January, 1,500 units,- February, 1,600 units; March, 1,800 units; April, 2,000
units; May, 2,100 units. Management wants to maintain the finished goods inventory at 30% of the
following month's sales. Watson uses four units of direct material in each finished unit. The direct
material price has been stable and is expected to remain so over the next six months. Management
wants to maintain the ending direct materials inventory at 60% of the following month's production
needs. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are
paid in the subsequent month. Watson's product requires 30 minutes of direct labor time. Each hour
of direct labor costs $7. Instructions: Rounding computations to the nearest dollar,... ...Read Less

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