ACC 206 Week 4 Assignment | Documents and Forms | Research Papers

ACC 206 Week 4 Assignment

ACC 206 Week 4 Assignment PLDZ-3250
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 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.

 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 assets

$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:

  1. 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.
  2. Management wants to maintain the finished goods inventory at 30% of the following month's sales.
  3. 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.
  4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month.
  5. Watson's product requires 30 minutes of direct labor time. Each hour of direct labor costs $7.

 

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
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