02.
Understanding Relationships, Master Budget, Comprehensive Review
Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information:
First quarter | 65,000 | ||
Second quarter | 70,000 | ||
Third quarter | 75,000 | ||
Fourth quarter | 90,000 |
First quarter | 13,000 units | ||
Second quarter | 15,000 units | ||
Third quarter | 20,000 units | ||
Fourth quarter | 10,000 units |
Assets | ||||
Cash | $ 250,000 | |||
Direct materials inventory | 5,256,000 | |||
Accounts receivable | 3,300,000 | |||
Plant and equipment, net | 33,500,000 | |||
Total assets | $42,306,000 |
Liabilities and Stockholders’ Equity | ||||
Accounts payable | $ 7,248,000* | |||
Capital stock | 27,000,000 | |||
Retained earnings | 8,058,000 | |||
Total liabilities and stockholders’ equity | $42,306,000 | |||
* For purchase of direct materials only. |
Required:
Prepare a master budget for Optima Company for each quarter of 20X1 and for the year in total. The following component budgets must be included:
2. Production budget (amounts in full, not in thousands) If an amount is zero, enter "0".
Optima Company | |||||
Production Budget | |||||
For the Year Ending December 31, 20X1 | |||||
Qtr. 1 | Qtr. 2 | Qtr. 3 | Qtr. 4 | Total | |
Sales | |||||
Desired ending inventory | |||||
Total needs | |||||
Less: Beginning inventory | |||||
Production |
2. Production budget (amounts in full, not in thousands) If an amount is zero, enter "0".
Optima Company | |||||
Production Budget | |||||
For the Year Ending December 31, 20X1 | |||||
Qtr. 1 | Qtr. 2 | Qtr. 3 | Qtr. 4 | Total | |
Sales | 65000 | 70000 | 75000 | 90000 | 300000 |
Desired ending inventory | 13000 | 15000 | 20000 | 10000 | 10000 |
Total needs | 78000 | 85000 | 95000 | 100000 | 310000 |
Less: Beginning inventory | 0 | -13000 | -15000 | -20000 | -0 |
Production | 78000 | 72000 | 80000 | 80000 | 310000 |
02. Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a...
Problem 9-73 Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year...
11. Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year...
01. Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will...
Having issues with 9,10,11 Problem 9-73 Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and...
Having issues with 6,7,and 8 Problem 9-73 Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity...
having issues with 9,10,11 Problem 9-73 Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and...
9. If more information is required please be specific in what is needed. Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The...
Having a hard time with #6 - 11 . Problem 9-73 Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will...
Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be...
Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be...