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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

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ekkarill92 answered 1 year ago
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