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CoursHeroTranscribedText: 9. value: 11.00 points The following information is provided concerning the operations of Tolstoy Corporation for the current period: Actual (based on actual of 180 units) Sales revenue $ Less Manuf acturing costs Dire ct labor Mat erials Vari able overhead Market ing Admini strative 5,260 Master Budget (based on budgeted 200 units) $ 5,400 760 800 650 740 360 460 315 350 200 200 Tota l variable costs $ 2,285 $ 2,550 Contrib ution margin $ 2,975 $ 2,850 Fixed costs Man ufacturin g Mar keting Ad ministrati ve 243 250 520 500 508 510 Tota l fixed costs $ 1,271 $ 1,260 Operat ing profits $ 1,704 $ 1,590 There are no inventories. Required: Prepare a flexible budget for Tolstoy Corporation. (Do not round your intermediate calculations.) 5. value: 11.00 points Brighton, Inc., manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month bank loan of $500,000 starting May 1. The bank would charge interest at the rate of 0.75 percent per month and require the company to repay interest and principal on May 31. In considering the loan, the bank requested a projected income statement and cash budget for May. The following information is available: The company budgeted sales at 600,000 units per month in April, June, and July and at 500,000 units in May. The selling price is $4 per unit. The inventory of finished goods on April 1 was 150,000 units. The finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process. The inventory of raw materials on April 1 was 43,125 pounds. At the end of each month, the raw materials inventory equals no less than 30 percent of production requirements for the following month. The company purchases materials in quantities of 63,500 pounds per shipment. Selling expenses are 10 percent of gross sales. Administrative expenses, which include depreciation of $2,500 per month on office furniture and fixtures, total $165,000 per month. The manufacturing budget for tiles, based on normal production of 500,000 units per month, follows: Materials (0.25 pound per tile, 125,000 pounds, $4 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $200,000) Total $ 500,000 390,000 190,000 410,000 $ 1,490,000 Required: (a Prepare schedules computing inventory budgets by months for ) (1 Production in units for April, May, and June. ) (2 Raw materials purchases in pounds for April and May. (Round your answers to ) the nearest whole number.) (b Prepare a projected income statement for May. Cost of goods sold should equal ) the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1% and bad debt expense of 0.50%. (Do not round intermediate calculations. Input all amounts as positive values.) Table below

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