PLEASE SHOW STEPS IN EXCEL SHEET
MC algo 26-19 Cash Disbursements Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of Quarter 1 is $25,800. What is the amount of the expected disbursements for Quarter 2 given the following expected quarterly sales?
Quarter 1: $ 67,000 Quarter 2: $ 108,000 Quarter 3: $ 100,000 Quarter 4: $ 109,000
Multiple Choice
A. $40,200
B. $61,600
C. $65,000
D. $63,200
E. $57,000
In: Finance
Delma Leathers Company is a manufacturer and seller of sports shoes. Information on budgeted sales in units is given below. Use this information to answer all parts of question one.
Month Units
February 2018 20,000
March 2018 24,000
April 2018 60,000
May 2018 45,000
June 2018 35,000
July 2018 30,000
Aug 2018 50,000
Required:
The selling price per unit is AED 35.
All sales are on account. Based on past experience, sales are collected in the following pattern:
|
Month of sale |
70% |
|
Month following sale |
30% |
The company maintains finished goods inventories equal to 20% of the following month's sales. The ending inventory on 31st March was 12,000 units.
Each shoes requires 6 pounds of raw materials.
The company requires that the ending inventory of raw materials be equal to 20% of the following month's production needs. The beginning inventory of materials on April 1st was 85,500 units
The raw materials costs $1.70 per pound.
60% of a month's purchases of raw materials is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable balance at the end of March was AED 325,000 to be paid in full in April.
Required:
Prepare a sales budget, by month and in total, for the second quarter. (Show your budget in both units and dollars.)
Prepare a schedule of expected cash collections, by month and in total, for the second quarter.
Prepare a production budget for each of the months of April-July.
Prepare a direct materials budget, by month and in total, for the second quarter.
Prepare a schedule of expected cash disbursements, by month and in total, for the second quarter.
In: Accounting
Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company’s master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 4.0 hours to 3.75 hours.
Labor-related costs include pension contributions of $1.05 per hour, workers’ compensation insurance of $0.75 per hour, employee medical insurance of $3 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $22.00 per hour on April 1, 20x1. Management expects to have 19,000 frames on hand at December 31, 20x0, and has a policy of carrying an end-of-month inventory of 100 percent of the following month’s sales plus 40 percent of the second following month’s sales.
These and other data compiled by Demarest are summarized in the following table.
|
January |
February |
March |
April |
May |
|||||
|
Direct-labor hours per unit |
4.0 |
4.0 |
3.75 |
3.75 |
3.75 |
||||
|
Wage per direct-labor hour |
$ 20.00 |
$ 20.00 |
$ 20.00 |
$ 22.00 |
$ 22.00 |
||||
|
Estimated unit sales |
13,000 |
15,000 |
11,000 |
12,000 |
12,000 |
||||
|
Sales price per unit |
$ 58.00 |
$ 55.50 |
$ 55.50 |
$ 55.50 |
$ 55.50 |
||||
|
Production overhead: |
|
|
|
|
|
||||
|
Shipping and handling (per unit sold) |
$ 1.00 |
$ 1.00 |
$ 1.00 |
$ 1.00 |
$ 1.00 |
||||
|
Purchasing, material handling, and inspection (per unit produced) |
$ 2.00 |
$ 2.00 |
$ 2.00 |
$ 2.00 |
$ 2.00 |
||||
|
Other production overhead (per direct-labor hour) |
$ 6.00 |
$ 6.00 |
$ 6.00 |
$ 6.00 |
$ 6.00 |
3. Prepare a production overhead budget for each month and for the first quarter.
Prepare a production overhead budget
for each month and for the first quarter.
SPIFFY SHADES CORPORATION - Production Overhead Budget - For the
First Quarter of 2001
(Month) January February March
Quarter
Shipping and handling
Purchasing, material handling, and inspection
Other overhead
Total production overhead
In: Accounting
AU Company has the following inventory transactions for the month of March:
| Units | Unit Cost | |
| Beginning, Mar. 1 | 10,000 | 15 |
| Purchases, Mar. 10 | 20,000 | 18 |
| Sold, Mar. 15 | 15,000 | |
| Purchases, Mar. 18 | 5,000 | 23 |
| Sold, Mar. 25 | 6,000 |
The company uses the perpetual inventory system. Determine the cost of inventory on March 31 and cost of goods sold under:
| Inventory Cost Flow | Ending Inventory | Cost of Goods Sold |
| First in, first out (FIFO) | ||
| Moving Average | ||
| Last in, first out (LIFO) |
In: Accounting
EBECEDE Company has the following inventory transactions for the month of February:
| Units | Unit Cost | |
| Beginning, Feb. 1 | 10,000 | 40 |
| Purchases, Feb. 10 | 10,000 | 43 |
| Sold, Feb. 15 | 15,000 | |
| Purchases, Feb. 18 | 5,000 | 44 |
| Sold, Feb. 25 | 2,000 |
The company uses the perpetual inventory system. Determine the cost of inventory on February 29 and cost of goods sold under:
| Inventory Cost Flow | Ending Inventory | Cost of Goods Sold (COGS |
| First in, first out (FIFO) | ||
| Weighted Average | ||
| Last in, first out (LIFO) |
In: Accounting
Transactions of ABC Corporation for the month of January are as follows:
Units Unit cost
Beginning, Jan. 1 10,000 20
Purchases, Jan. 10 10,000 22
Sold, Jan. 15 15,000
Purchases, Jan. 18 5,000 23
Sold, Jan. 25 8,000
The company uses the perpetual inventory system. Determine the cost of inventory on January 31 and cost of goods sold under:
| Inventory Cost Flow | Ending Inventory |
Cost of Goods Sold |
|
| First in, first out (FIFO) | |||
| Moving average | |||
| Last in, first out (LIFO) |
In: Finance
Work through the National Budget Simulation in an effort to achieve a budget deficit of $1100B dollars.
Scenario: The President of the United States has been elected on the promise of fiscal responsibility. By law he cannot reduce the net interest paid on the debt. The President's budget is projected to leave the country with a $1100B deficit.
The United States is subject to global security concerns. At the same time, a lingering recession and financial markets rescue package reduces the government's tax revenues and forces the government to increase its spending on unemployment benefits, welfare, housing assistance, food stamps, and other need-based programs. Because of the increased spending and reduced revenues, the nation falls into a projected deficit of nearly XXX in 2015 (This is the first piece of the information you need to find).
The President is committed to keeping his campaign promises in order to avoid future crisis over the US's financial standing. He must raise taxes, cut spending, or a combination of both to stay within his new guideline of a deficit below $1100B. The President turns to you, his trusted economic advisor, for help. (Note: While some events in this scenario reflect actual events, others are hypothetical for the purposes of this exercise. Budget figures in the simulation are actual White House figures of 2012, including spending and revenues of 2012.)
Given the information you watch and read in the preceding Module 7 activities, use that background to answer the following questions for discussion. Since the simulation is using 2012 numbers, start off with actual numbers just to inject a sense of reality into this discussion. Research this information from a reliable source and begin your analysis with what you found. Detail your choices for cuts and spending, paying close attention to what you read in the Bowles and Montgomery articles. Finally, analyze the effect your choices will have on the economy.
In: Economics
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 5,000 | 8,000 | 7,000 | 6,000 |
In addition, 6,000 grams of raw materials inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $2,880.
Each unit requires 8 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor hours and direct laborers are paid S 11.50 per hour.
Required:
Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.
In: Accounting
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1-49000, Quarter 2-78000, Quarter 3- 39000 Quarter 478000 Budgeted Unit Sales. Each T-shirt is expected to sell for $24. The purchasing manager buys the T-shirts for $10 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 34 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $98,000 per quarter plus 14 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expenses for each quarter. 5. Complete the budgeted income statement for each quarter.
In: Accounting
Use the following to fill in the blanks
| Perky Turkey Jerky, LLC | ||||
| Budgeting Assumptions | ||||
| For the Quarter Ending June 30, 2018 | ||||
| Month | ||||
| April | May | June | July | |
| Sales Budget | ||||
| Budgeted Sales in units | 10,000 | 12,000 | 15,000 | 15,000 |
| Selling Price Per Unit | $9.00 | $9.00 | $9.00 | |
| Percentage of Sales collected in the month of the sale | 90% | 90% | 80% | |
| Percentage of Sales collected in the month after the sale | 10% | 10% | 20% | |
| Production Budget | ||||
| Percentage of next month's sales in ending finished goods inventory | 20% | 25% | 30% | |
| Direct Materials Budget | ||||
| Meat per pound | $2.50 | $2.50 | $2.50 | |
| Pounds of meat per unit | 2 | 2 | 2 | |
| Percentage of next months production needs in ending inventory | 10% | 10% | 10% | |
| Percentage of purchases paid in the month purchased | 60% | 60% | 60% | |
| Percentage of purchases paid in the month after purchase | 40% | 40% | 40% | |
| Direct Labor Budget | ||||
| Direct labor hours required per unit (20 units per labor hour) | 0.05 | 0.05 | 0.05 | |
| Cost per direct labor hour | $15.00 | $15.00 | $15.00 | |
| Manufacturing Overhead Budget | ||||
| Variable manufacturing overhead per direct labor hour | $5.00 | $5.00 | $5.00 | |
| Fixed manufacturing overhead | $15,000 | $15,000 | $15,000 | |
| Manufacturing Depreciation | $10,000 | $10,000 | $10,000 | |
| Variable Selling and Administrative Expense Budget | ||||
| Sales Commissions | $0.15 | $0.15 | $0.15 | |
| Fixed selling and administrative expenses | ||||
| Advertising | $2,500 | $2,500 | $2,500 | |
| Manager Salaries | $5,000 | $5,000 | $5,000 | |
| Insurance | $2,000 | $2,000 | $2,000 | |
| Depreciation on Office Equipment | $500 | $500 | $500 | |
| Total fixed selling and administrative expenses | $10,000 | $10,000 | $10,000 | |
| Cash Budget | ||||
| Minimum cash balance | $50,000 | $50,000 | $50,000 | |
| Simple annual interest rate | 3% | 3% | 3% | |
| Perky Turkey Jerky, LLC | |||||||
| Balance Sheet | |||||||
| March 31, 2018 | |||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash | 52,000.00 | ||||||
| Accounts Receivable | 9,000.00 | ||||||
| Raw Materials Inventory | 2,750.00 | ||||||
| Finished Goods Inventory | 14,300.00 | ||||||
| Total Current Assets | 78,050.00 | ||||||
| Plant and Equipment | |||||||
| Equipment | 930,000.00 | ||||||
| Accumulated Depreciation | (63,000.00) | ||||||
| Plant and Equipment, Net | 867,000.00 | ||||||
| Total Assets | 945,050.00 | ||||||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities | |||||||
| Accounts Payable | 7,500.00 | ||||||
| Bonds Payable | 100,000.00 | (for simplicity, ignore interest on Bonds Payable) | |||||
| Stockholders' Equity | |||||||
| Common Stock | 800,000.00 | ||||||
| Retained Earnings | 37,550.00 | ||||||
| Total Stockholders' Equity | 837,550.00 | ||||||
| Total Liabilities and Stockholders' Equity | 945,050.00 | - | |||||
| Perky Turkey Jerky, LLC | ||||
| Sales Budget | ||||
| For the Quarter Ending June 30, 2018 | ||||
| Month | Quarter Total | |||
| April | May | June | ||
| Budgeted Sales (in units) | ||||
| Selling price per unit | ||||
| Total Sales | ||||
| Schedule of Expected Cash Collections | ||||
| Beginning Accounts Receivable | ||||
| April sales | ||||
| May sales | ||||
| June sales | ||||
| Total cash collections | ||||
| Perky Turkey Jerky, LLC | ||||
| Sales Budget | ||||
| For the Quarter Ending June 30, 2018 | ||||
| Month | Quarter Total | |||
| April | May | June | ||
| Budgeted sales in units | ||||
| Add: Desired Ending Inventory | ||||
| Total units needed | ||||
| Less: Units of beginning finished goods inventory | ||||
| Required production in units | ||||
| Perky Turkey Jerky, LLC | ||||
| Direct Materials Budget | ||||
| For the Quarter Ending June 30, 2018 | ||||
| Month | Quarter Total | |||
| April | May | June | ||
| Required production (in units) | ||||
| Pounds of raw materials per unit | ||||
| Pounds of raw materials needed for production | ||||
| Add: Desired Raw Materials ending inventory | ||||
| Total pounds of Raw Materials needed | ||||
| Less: Beginning Raw Materials inventory | ||||
| Pounds of Raw Materials to be purchased | ||||
| Cost of Raw Materials per pound | ||||
| Cost of Raw Materials to be purchased | ||||
| Schedule of Expected Cash Disbursements for the Purchase of Materials | ||||
| Beginning Accounts Payable | ||||
| April purchases | ||||
| May purchases | ||||
| June purchases | ||||
In: Accounting