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In: Accounting

Part #1: K Company is planning its cash disbursements for the upcoming months. In June, it...

Part #1: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $77,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $84,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid half in the current month and half in the following month. Payroll is paid 70 percent in the current month and 30 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.

Part #2: Q Company anticipates production for its second quarter to be 18,000 units in April, 28,400 units in May, and 36,000 units in June. Each unit of finished product requires four pounds of raw materials. Q Company maintains raw materials inventories equal to 25 percent of the following month’s pounds needed for production. The April 1 inventories are in line with Q Company’s inventory policy. The anticipated cost per pound in April is $6 while the anticipated cost per pound in May is $6.25. Prepare a Direct Materials Purchases Budget with columns for April and May only.

Part #3: F Company’s Production Budget indicates that 13,000 units will be produced in April and 12,300 units in May. Workers are paid $19 per hour. It generally takes a worker 15 minutes (which is .25 hours) to make a unit. Prepare a Direct Labor Budget with columns for April and May only.

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Part 2 Workings:

Part 2 Final Answer:

Part 3 Final Answer:

ekkarill92 answered 6 months ago
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