Question

In: Accounting

Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget...

  1. Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 per month. The remainder of the fixed selling and administrative expense represents current cash flows.Calculate the budgeted cash disbursements for selling and administrative expenses for December. Give your answer as a positive number (no sign).

  2. The Kazy Company has the following budgeted sales:

                           April May June July

Credit Sales 300,000 320,000 350,000 400,000

Cash Sales 70,000 80,000 90,000 70,000

The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

Calculate the budgeted cash receipts for July. Hint: for ALL sales

  1. The manufacturing overhead budget at Mayfly Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,900 direct labor-hours will be required in May.The variable overhead rate is $9.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $112,970 per month, which includes depreciation of $18,170. All other fixed manufacturing overhead costs represent current cash flows. Calculate the May budgeted cash disbursements for manufacturing overhead. Give your answer as a positive number (no sign).

  1. Denise Doughnuts pays for 60% of its purchases in the month and 40% in the following month. Given the following expenses, what are Oct. cash disbursements? Give your answer as a positive number (no sign).

Merchandise purchases in Sept.                        $400,000

Merchandise purchases in Oct. $300,000

Cash operating expenses, Oct 1-31                            $250,000

Depreciaton for Oct.                                               $125,000

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Exercise 8-6 Selling and Administrative Expense Budget Weller Company's budgeted unit sales for the upcoming fiscal...
Exercise 8-6 Selling and Administrative Expense Budget Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 15,000 16,000 14,000 13,000 The company’s variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000...
Exercise 8-6 Selling and Administrative Expense Budget [LO8-7] Weller Company's budgeted unit sales for the upcoming...
Exercise 8-6 Selling and Administrative Expense Budget [LO8-7] Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 21,000 28,000 19,000 19,000 The company’s variable selling and administrative expense per unit is $2.00. Fixed selling and administrative expenses include advertising expenses of $14,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of...
Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary...
Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses $0 $0 $0 Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 [The following information applies to the questions displayed below.] Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company...
irkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget....
irkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24....
Prepare a sales, production, direct materials, direct labor, overhead, and selling & administrative expense budget by...
Prepare a sales, production, direct materials, direct labor, overhead, and selling & administrative expense budget by quarter for the year 2020 for the Budgets R Us Co. using the following assumptions: Sales quantity by quarter: 10,000, 11,000, 12,000, 13,000, 14,000, 15,000. Selling price per unit = $20. Ending FG inventory = 10%. RM pounds per unit = 4. Ending RM inventory = 20%. RM price per pound = $2 Direct labor hours per unit = 2 Direct labor hourly rate...
Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense...
Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2008, the following data are developed:       Sales:                                                                20,000 units Unit selling price:                                                       RM35 Variable costs per RM of sales:             Sales commissions                                                 6%             Delivery expense                                                   2%             Advertising                                                            4% Fixed costs per quarter:             Sales salaries                                             RM24,000             Office salaries                                                  17,000             Depreciation                                                      6,000             Insurance                                                            2,000             Utilities                                                              1,000 Prepare a selling and administrative...
Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense...
Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data are developed: 1.   Sales: 20,000 units; unit selling price:                       $35 2.   Variable costs per dollar of sales:             Sales commissions                                                6%             Delivery expense                                                   2%             Advertising                                                             4% 3.   Fixed costs per quarter:             Sales salaries                                                $24,000             Office salaries                                                  17,000             Depreciation                                                       5,000             Insurance                                                           1,000             Utilities                                                               2,000 Instructions Prepare a selling...
Which of the following statements is false with respect to the selling and administrative expense budget?...
Which of the following statements is false with respect to the selling and administrative expense budget? Multiple Choice It includes depreciation expense even though it is not a cash flow. It estimates the cash disbursements for selling and administrative expenses that appear in the cash budget. It includes estimated variable and fixed selling and administrative expenses. It impacts the budgeted cost of goods sold reported on the income statement.
The selling and administrative expense budget of Fenley Corporation is based on the number of units...
The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. The variable selling and administrative expense is $4.40 per unit. The budgeted fixed selling and administrative expense is $35,750 per month, which includes depreciation of $4,000. The remainder of the fixed selling and administrative expense represents current cash flows. Required: Prepare the selling and administrative expense budget for January. (Give the proper answer with...
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses...
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,830 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $42,100 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2017. Quarter 1 2 3 4 Year Variable expenses $ $ $ $ $ Fixed expenses Total selling and administrative expenses...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT