(3) Under unadjusted trial balance, total debits and credits equals \$40,550. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers. Make the August direct labor cost budget. For hours required, round to nearest whole hour.

Determine the fixed and variable portions of the utility cost using the high-low method. Round the per unit cost to the nearest cent.

## Step by Step Solution

(8) Return on assets equals 1.19%, debt ratio equals 12.35% and current ratio equals 6. (5) Adjusting entries and T accounts are mentioned in Step 5. Prepare the August production budget.

• Enter all amounts as positive numbers.
• (8) Return on assets equals 1.19%, debt ratio equals 12.35% and current ratio equals 6.
• (5) Adjusting entries and T accounts are mentioned in Step 5.
• Determine the fixed costs per month, including the utility fixed cost from part (1).
• Prepare the August budgeted income statement, including selling expenses.

For hourly rate, enter to the nearest cent, if required. Prepare the August direct labor cost budget. (6) Under adjusted trial balance, total debits and credits equals \$42,950. Make the August budgeted income statement, including selling expenses. Prepare the August direct materials purchases budget.

## Step-by-Step-Solution  Step 1: Journal entries and T accounts

Enter the unit price to the nearest cent. Make the August factory overhead cost budget. If an amount box does not require an entry, leave it blank. Prepare the August factory overhead cost budget. In addition, there was no change in the cost per unit or estimated units per case operating data from January. Determine the fixed costs per month, including the utility fixed cost from part (1).

• If an amount box does not require an entry, leave it blank.
• For hourly rate, enter to the nearest cent, if required.
• Round the per unit cost to the nearest cent.
• Make the August budgeted income statement, including selling expenses.
• Prepare the August direct labor cost budget.
• In addition, there was no change in the cost per unit or estimated units per case operating data from January.