Question 4 Krause Industries balance sheet at December 31 20

Question 4 Krause Industries\' balance sheet at December 31, 2016, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Current Assets Accounts receivable 73,500 goods inventory 1,500 units) Total curent assets Proparty, Pant, and Equipmant $40,720 10.55030.170 Tctal assets Liabilities and Stockholders\' Equity Nores payable Accounts payable $23,360 Total Fabilties Stockholders Equity Common stock Retained earnings Total stockholders equity Total lisbilities and stockholders\' equity Budgeted data for the year 2017 include the following. 2017 Quarter 4 Total Seles budget (8,000 units at $32) Direct materials used Direct labor Manufacturing overhead applied Seling and administrative expenses 576,800 $256,000 11.680 12,500 50,900 10,000 50,940 17,330 75,000 To meet sales requirements and to have 2.500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3.500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an 59.010 cash dividend. The company\'s cash budget shows an expected cash balance of S5,880 at Docar bar 31, 2017. All sales and purchase; are on account. It is expected that 60% o quarterly sales are collected in cash within the quarter and the remainder is collected in the

Solution

Finished goods Inventory , 1/1/17 26520 Cost of goods Manufactured Direct Materials used 62500 Direct Labour 50900 Manufacturing overhead Applied 50940 164340 Cost of goods available for sale 190860 Finished goods Inventory , 31/12/17 45000 Cost of goods sold $ 145860