Need A Tutor?    |   Need Homework Help?                                                                             Help and Support     | Join or Cancel

Homework  1.1 1.2  2.1 2.2  3.1 3.2  4.1 4.2 5.1 5.2  6.1 6.2  7.1  7.2  8.1  8.2  9.1   9.2  10.1  10.2  11.1  11.2  12.1 12.2  13.1  13.2  14.1  14.2  15.1   15.2
Learnsmart  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15   |  Exam  1  2  3  4  5  6  7  8  9  10  11  12   13  14  15  |  Final Exam 1   2    Homework Help?

Use the following information to prepare the September cash budget for PTO Manufacturing Co.
The following information relates to expected cash receipts and cash payments for the month ended September 30.
Beginning cash balance, September 1, $46,000.
Budgeted cash receipts from sales in September, $263,000.
Raw materials are purchased on account. Purchase amounts are: August (actual), $78,000, and September (budgeted), $105,000.
Payments for direct materials are made as follows: 70% in the month of purchase and 30% in the month following purchase.
Budgeted cash payments for direct labor in September, $36,000.
Budgeted depreciation expense for September, $3,300.
Other cash expenses budgeted for September, $59,000.
Accrued income taxes payable in September, $10,300.
Bank loan interest payable in September, $1,400.
 
 
Jasper Company has sales on account and for cash. Specifically, 59% of its sales are on account and 41% are for cash.
Credit sales are collected in full in the month following the sale.
The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June.
The beginning balance of Accounts Receivable is $306,200 on April 1.
Prepare a schedule of budgeted cash receipts for April, May, and June.
 

   
Ruiz Co. provides the following sales forecast for the next four months:
                                April       May       June      July
Sales (units)       580         660         610         700
The company wants to end each month with ending finished goods inventory equal to 30% of next month’s forecasted sales.
Finished goods inventory on April 1 is 174 units. Assume July’s budgeted production is 610 units. In addition, each finished unit
requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30%
of next month’s production needs. Beginning raw materials inventory for April was 1,087 pounds. Assume direct materials cost $4 per pound.
Prepare a production budget for the months of April, May, and June.
 
Ruiz Co. provides the following sales forecast for the next four months:
 
                                April       May       June      July
Sales (units)       670         750         700         790
 
The company wants to end each month with ending finished goods inventory equal to 30% of next month’s forecasted sales.
Finished goods inventory on April 1 is 201 units. Assume July’s budgeted production is 700 units. In addition, each finished unit
requires four pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to
30% of next month’s production needs. Beginning raw materials inventory for April was 833 pounds. Assume direct materials cost $5 per pound.
Prepare a direct materials budget for April, May, and June.
(Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Addison Co. budgets production of 2,470 units during the second quarter. Other information is as follows:

Direct labor	Each finished unit requires 5 direct labor hours, at a cost of $8 per hour.
Variable overhead	Applied at the rate of $10 per direct labor hour.
Fixed overhead	Budgeted at $520,000 per quarter.

1. Prepare a direct labor budget.

2. Prepare a factory overhead budget.
 
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments
(excluding cash payments for loan principal and interest payments) for the first three months of next year.
 

	Cash Receipts	Cash Payments
January	$526,000	$473,900
February	411,500	359,400
March	464,000	535,000

 
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end.
In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month.
The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess
of $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.
Prepare monthly cash budgets for January, February, and March.
(Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
 
 
Jasper Company has sales on account and for cash. Specifically, 59% of its sales are on account and 41% are for cash.
Credit sales are collected in full in the month following the sale. The company forecasts sales of $519,000 for April, $529,000 for May,
and $554,000 for June. The beginning balance of Accounts Receivable is $300,100 on April 1.
Prepare a schedule of budgeted cash receipts for April, May, and June
Ruiz Co. provides the following sales forecast for the next four months.

	April		May		June		July
Sales (units)	690		770		720		810

 
The company wants to end each month with ending finished goods inventory equal to 30% of next month’s forecasted sales.
Finished goods inventory on April 1 is 207 units. Prepare a production budget for the months of April, May, and June.
Zira Co. reports the following production budget for the next four months.

	April		May		June		July
Production (units)	604		645		637		617

 
Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal
to 20% of next month’s production needs. Beginning raw materials inventory for April was 483 pounds. Assume direct materials cost $5 per pound.
Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
 
Electro Company manufactures an innovative automobile transmission for electric cars.
Management predicts that ending finished goods inventory for the first quarter will be 238,200 units.
The following unit sales of the transmissions are expected during the rest of the year:
 
second quarter, 397,000 units
third quarter, 286,000 units
fourth quarter, 216,000 units
 
Company policy calls for the ending finished goods inventory of a quarter to equal 60% of the next quarter’s budgeted sales.
Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours
at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is
$16,000 per month. The company’s policy is to end each month with direct materials inventory equal to 30% of the next month’s materials
requirement. At the end of August the company had 2,980 pounds of direct materials in inventory.
The company’s production budget reports the following.
 

Production Budget	September		October		November
Units to be produced	4,600		6,800		6,200

(1) Prepare direct materials budgets for September and October.


(2) Prepare direct labor budgets for September and October.


(3) Prepare factory overhead budgets for September and October.
Zhang Industries sells a product for $700. Unit sales for May were 400 and each month’s sales are expected to exceed the prior month’s results by 3%. Compute the total sales dollars to be reported on the sales budget for month ended June 30.
$280,000
$297,000
$271,600
$288,400
$364,000
  To determine the production budget for an accounting period, consideration is given to all of the following except:
 
Budgeted ending inventory.
Budgeted beginning inventory.
Budgeted sales.
Budgeted overhead
Ratio of inventory to future sales.
   
Zhang Industries is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000
in cash receipts and $111,290 in cash disbursements during June. The company has no loans outstanding on June 1.
Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance.
 
$28,710
$12,290
$16,290
$11,290
$6,290
   
Which of the following budgets is not a budget that a manufacturer would include in its master budget?
 
Sales budget.
Direct materials budget.
Production budget.
Merchandise purchases budget
Cash budget.
   
Frankie’s Chocolate Co. reports the following information from its sales budget:
 

Expected Sales:	July	$90,000
	August	104,000
	September	120,000

 
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale.
The total amount of cash expected to be received from customers in September is:
 
$30,000
$78,000
$108,000
$120,000
$130,500
   
Q6. Junior Snacks reports the following information from its sales budget:
 

Expected Sales:	October	$  143,000
	November	151,000
	December	187,000

 
All sales are on credit and are expected to be collected 40% in the month of sale and 60% in the month following sale.
The total amount of cash expected to be received from customers in November is:
 
$146,200
$85,800
$151,000
$236,800
$60,400
   
Flagstaff Company has budgeted production units for July of 7,900 units. Variable factory overhead is $1.20 per unit.
Budgeted fixed factory overhead is $19,000, which includes $3,000 of factory equipment depreciation.
Compute the total budgeted overhead to be reported on the factory overhead budget for the month.
 
$25,480
$19,000
$23,900
$28,480
$9,480
   
Boulware Company’s budgeted production calls for 5,000 units in October and 8,000 units in November. Each unit requires 8 pounds (lbs.)
of raw material A. Each month’s ending inventory of raw materials should equal 20% of the following month’s budgeted materials requirements.
The October 1 inventory for this material is 8,000 pounds. What is the budgeted materials purchases for this key material in pounds for October?
 
40,000 lbs
44,800 lbs
52,800 lbs
60,800 lbs
35,200 lbs
   
Ratchet Manufacturing anticipates total sales for August, September, and October of $200,000, $210,000, and $220,500 respectively.
Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale.
Compute the amount of accounts receivable to be reported on the company’s budgeted balance sheet for August.
 
$150,000
$50,000
$157,500
$52,500
$200,000
   
Fortune Company’s direct materials budget shows the following cost of materials to be purchased for the coming three months:
 

	January	February	March
Material purchases	$12,040	$14,150	$10,970

 
Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase.
The December Accounts Payable balance is $6,500. The budgeted cash payments for materials in January are:
 
$6,500
$9,270
$12,520
$13,095
$18,540

Homework  1.1 1.2  2.1 2.2  3.1 3.2  4.1 4.2 5.1 5.2  6.1 6.2  7.1  7.2  8.1  8.2  9.1   9.2  10.1  10.2  11.1  11.2  12.1 12.2  13.1  13.2  14.1  14.2  15.1   15.2
Learnsmart  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15   |  Exam  1  2  3  4  5  6  7  8  9  10  11  12   13  14  15  |  Final Exam 1   2    Homework Help?