Question

1. Bustillo Inc. is working on its cash budget for March. The budgeted ...

Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $50,000. Budgeted cash receipts total $134,000 and budgeted cash disbursements total $129,000. The desired ending cash balance is $70,000. To attain its desired ending cash balance for March, the company needs to borrow:

Multiple Choice

• $125,000

• $70,000

• $15,000

• $0

2. Seventy percent of Pitkin ...

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company:

	January			February		March		April
Budgeted sales	$200,000			$300,000		$350,000		$250,000

Total budgeted cash collections in April would be:

Multiple Choice

• $175,000

• $275,000

• $70,000

• $30,000

3. Budgeted sales in Acer Corporation ...

Budgeted sales in Acer Corporation over the next four months are given below:

	September			October		November		December
Budgeted sales	$120,000			$140,000		$180,000		$160,000

Thirty percent of the company’s sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month’s credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:

Multiple Choice

• $141,800

• $100,500

• $118,700

• $161,400

4. Masde Corporation produces and sells Product ...

Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product CharlieD over the next four months are:

	June			July		August		September
Budgeted sales in units	40,000			60,000		50,000		80,000

Budgeted production for August would be:

Multiple Choice

• 57,500 units

• 107,000 units

• 77,000 units

• 80,000 units

5.

The Charade Corporation is preparing its ...

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $7 per direct labor-hour; the budgeted fixed manufacturing overhead is $87,000 per month, of which $16,200 is factory depreciation.

If the budgeted direct labor time for November is 8,200 hours, then the total budgeted manufacturing overhead for November is:

Multiple Choice

• $128,200

• $87,000

• $160,600

• $144,400

Answer 1

1)	opening balance		50,000
	add cash receipts		134,000
	total cash collection		184,000
	less disbursement		-129000
	Excess(Deficiency)		55,000
	borrowing		15,000
	ending cash balance		70,000
	answer	15,000
2)				april
	April (250,000*70%)=			175000
	march (350,000*20%)=			70000
	Feb (300,000*10%)=			30,000
	total cash collection			275000	answer
3)				December
	Dec cash sale			48000
	Credit sale
	Dec (160000*70%*50%)			56000
	Nov (180000*70%*30%)			37800
	oct (140000*70%*20%)			19600
	total cash collection			161400	answer
4)				Aug
	expected unit sales			50,000
	add ending inventory			20000
	less beginning invnetory			-12500
	production required			57,500	answer
5)				nov
	variable (8200*7)			57400
	fixed cost			87,000
	total			144400	answer
	Answer-	144,400