Question
In: Accounting
Assume FXX company's sales budget for April and May is 39,000 units and 41,000 units, respectively....
Assume FXX company's sales budget for April and May is 39,000
units and 41,000 units, respectively. Its production budget for the
same two months is 36,000 units and 37,000 units, respectively.
Each unit of finished goods required 5 pounds of raw materials. The
company always maintains raw materials inventory equal to 25% of
the following month's production needs.
Also, assume the company pays $2.40 per pound of raw material. It
always pays for 60% of its raw material purchases in the month of
purchase and the remainder in the following month. The accounts
payable balance on March 31st is $139,000. What would be
the accounts payable balance at the end of April?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Assume a company’s sales budget for April and May is 35,000 units and 37,000 units, respectively....
Assume a company’s sales budget for April and May is 35,000
units and 37,000 units, respectively. Its production budget for the
same two months is 32,000 units and 33,000 units, respectively.
Each unit of finished goods required 4 pounds of raw materials. The
company always maintains raw materials inventory equal to 10% of
the following months production needs. Also assume the company pays
$2.20 per pound of raw material. It always pays for 50% of its raw
material purchases in...
Question 1: - Cash Budget: Estimated sales January February March April May Total Coffee sales (units)...
Question 1: - Cash Budget:
Estimated sales
January
February
March
April
May
Total Coffee sales (units)
15,000
16,000
17,500
18,000
14,500
Your friend, MATT, has been running a successful coffee shop for
the last couple of years. He has asked you to put together a cash
budget. His regular accountant was too busy to help, but told MATT
his depreciation expense was going to be $1,800 per year, using the
straight-line method. He has supplied you with the following
information...
Cash Budget: Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 17,500...
Cash Budget:
Estimated sales
January
February
March
April
May
Total Coffee sales (units)
15,000
16,000
17,500
18,000
14,500
Your friend, Chris Coffee, has been running a successful coffee
shop for the last couple of years. He has asked you to put together
a cash budget. His regular accountant was too busy to help, but
told Chris his depreciation expense was going to be $1,800 per
year, using the straight-line method. He has supplied you with the
following information (above) to...
Assume a company’s estimated sales for January, February, and March are 25,000 units, 27,000 units, and 24,000 units, respectively.
Assume a company’s estimated sales for January, February, and March are 25,000 units, 27,000 units, and 24,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month’s unit sales. What is the required production in units for January?
Cowboy Company's sales employees earn a total of $41,000 per month and are paid on the...
Cowboy Company's sales employees earn a total of $41,000 per
month and are paid on the last working day of the month. Each
employee’s wages are subject to FICA Social Security taxes of 6.2%
and Medicare taxes of 1.45% on all wages. Withholding for each
employee also includes federal income tax of 14% and monthly
medical insurance premiums of $2,200 for the employees. Prepare the
general journal entry to accrue the monthly sales salaries expense
at January 31.
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:...
Quagmire Inc. has prepared the following sales budget for the
quarter of April, May and June:
Sales Budget
April
May
June
Total
Sales in units
10200
14400
12000
36600
Selling price per unit
x $30
x $30
x $30
Sales revenue
$306000
$432000
$360000
$1098000
All of the sales are on credit.
Quagmire collects from customers as follows:
40% of sales in the month of sale
25% in the month following the sale, and
35% in the second month following...
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 18,000 units)
for the first quarter reveals the following.
Fixed Budget
Sales (18,000 units × $208 per unit)
$
3,744,000
Cost of goods sold
Direct materials
$
414,000
Direct labor
756,000
Production supplies
468,000
Plant manager salary
214,000
1,852,000
Gross profit
1,892,000
Selling expenses
Sales commissions
126,000
Packaging
270,000
Advertising
100,000
496,000
Administrative expenses
Administrative salaries
264,000
Depreciation—office equip.
234,000
Insurance
204,000
Office rent
214,000
916,000
Income from operations
$
480,000
(1)...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units)
for the first quarter reveals the following.
Fixed Budget
Sales (10,000 units × $201 per unit)
$
2,010,000
Cost of goods sold
Direct materials
$
230,000
Direct labor
430,000
Production supplies
260,000
Plant manager salary
30,000
950,000
Gross profit
1,060,000
Selling expenses
Sales commissions
90,000
Packaging
140,000
Advertising
100,000
330,000
Administrative expenses
Administrative salaries
80,000
Depreciation—office equip.
50,000
Insurance
20,000
Office rent
30,000
180,000
Income from operations
$
550,000
(1)...
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 16,000 units)
for the first quarter reveals the following.
Fixed Budget
Sales (16,000 units × $209 per unit)
$
3,344,000
Cost of goods sold
Direct materials
$
400,000
Direct labor
688,000
Production supplies
448,000
Plant manager salary
200,000
1,736,000
Gross profit
1,608,000
Selling expenses
Sales commissions
128,000
Packaging
240,000
Advertising
100,000
468,000
Administrative expenses
Administrative salaries
250,000
Depreciation—office equip.
220,000
Insurance
190,000
Office rent
200,000
860,000
Income from operations
$
280,000
(1)...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the...
Tempo Company's fixed budget (based on sales of 10,000 units)
for the first quarter reveals the following. Fixed Budget Sales
(10,000 units × $204 per unit) $ 2,040,000 Cost of goods sold
Direct materials $ 230,000 Direct labor 430,000 Production supplies
270,000 Plant manager salary 30,000 960,000 Gross profit 1,080,000
Selling expenses Sales commissions 80,000 Packaging 140,000
Advertising 100,000 320,000 Administrative expenses Administrative
salaries 80,000 Depreciation—office equip. 50,000 Insurance 20,000
Office rent 30,000 180,000 Income from operations $ 580,000 (1)...
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