1) A Company has prepared the following sales budget: Month Budgeted Sales March 400,000 April 207.000 May 241,000 June 248.000 Cost of goods sold is budgeted at 40% of sales, and the inventory at the end of February was 34,000. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 2) Fly GenX, Inc. has the following budgeted sales for the next quarter. Month: Units 10.000 11.000 12.000 Inventory of finished goods on hand at the beginning of the quarter is 4,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month. Calculate the quantity to be produced during the quarter. 3) Microsoft Manufacturing expects to produce 2,900 units in January and 3,600 units in February. Microsoft budgets $20 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,650. Microsoft desires the ending balance in Raw Materials Inventory to be 10% of the next month's direct materials needed for production. Desired ending balance for February is $51,100. What is the cost of budgeted purchases of direct materials needed for January? 4) From the following details provided by Administaff, Inc., prepare the manufacturing overhead budget for the year. Also, calculate the predetermined overhead allocation rate, using direct labor hours as the allocation base (Complete the below table). Firse Quarter 15,000 $45 Second Quarter 18,000 545 Third Quarter 21,000 $45 Fourth Quarter 24,000 545 Budgeted production units Variable overhead cost per unit Fixed overhead costs Depreciation Rent Direct Labor Hours $3,000 $5,000 $3,000 $5.750 14,500 $3.000 56,250 17,200 $3.000 $7.250 12.800 12.500 Answer: Administaff, Inc. Manufacturing Overhead Budget For the Year Ended December 31, 20XX First Quarter Second Quarter Third Quarter Fourth Quarter Total SA SA SN SN SA SA SS SS SN SX SX SI Sad SN SX SSA Budgeted units to be produced VOH cost per unit Budgeted VOH Budgeted FOH** Depreciation Rent Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours (DLHr) Budgeted manufacturing overhead costs Predetermined overhead allocation rate S SU Sx SSS *VOH - Variable Manufacturing Overhead **FOH - Fixed Manufacturing Overhead 5) From the following details provided by Barry, Inc., prepare the cost of goods sold budget for the year (complete the below table). Direct materials per unit $65 Direct labor hours per unit 2 hours Direct labor rate per hour $50 Manufacturing overhead cost per direct labor hour $20 Beginning inventory units 1,000 Sales price per unit $250 First Second Third Fourth Quarter Quarter Quarter Quarter Units expected to be sold: 15,000 18,000 21,000 24,000 Moore, Inc. expects no inventory units at the end of the second third and fourth quarters. Answer: Moore, Inc. Cost of Goods Sold Budget For the Year Ended December 31, 20XX First Second Third Fourth Quarter Quarter Quarter Quarter Beginning inventory (1,000 units)* Sx Units produced and sold in 20XX @ $205 each Sx $x $x $x (15,000**, 18,000, 21,000, 24,000 units per quarter) Total budgeted cost of goods sold $x Sx $x Sx *Calculation of cost of beginning inventory: 6) Belk, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $39,900846.000 Cash payments: Purchases of direct materials 31,000 22,000 17,500 Operating expenses 12,200 8,700 11,300 Capital expenditures 13,600 24,300 The cash balance on June 30 is projected to be $4,500. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions. 6) Belk, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $39,900846.000 Cash payments: Purchases of direct materials 31,000 22,000 17,500 Operating expenses 12,200 8,700 11,300 Capital expenditures 13,600 24,300 The cash balance on June 30 is projected to be $4,500. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions. 7) Google has provided the following details concerning budgeted sales: Budgeted Sales Jan $75,000 Feb 69,000 March 80,000 April 82,000 May 80,500 June 92,000 The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account. Calculate the cash receipts from customers for the first six months. Answer: Calculation of cash receipts for the first six months: Jan Feb March April May Jun Budgeted sales $75,000 $69.000 $80,500 $92,000 $80,000 $82,000 Cash Receipts from customers: Month of sale (20%) 15,000 13,800 16,000 16,400 16,100 18,400 First month after sale (40%) 30,000 27,600 32,000 32,800 32,200 Second month after sale (40%) 30,000 27,600 32,000 32, 800 Total collection from customers $15.000 $43.800 $73,600 $76, 000 $80,900 $83,400 8) Star Moving Systems, Inc. has provided the following details for direct materials purchased on account in different months. Jan Feb March April May June $35,000 28,000 34,000 39,000 32,000 29,000 The terms of payment offered by the suppliers are to pay 70% in the month of purchase and 30% in the following month. Calculate the payments on account made during the first six months (Complete the below table) March April May Jun Answer: Jan Feb e Purchases on account: $x Sx $x Sx $x $x Cash payments to suppliers: In the month of purchase (70%) X X X X In the next month: (30%) Total payments to suppliers Sx Sx $x Sx $x Sx 9) The following details have been extracted from the budget of a merchandising company. Rent Expense 8.400 per month Depreciation Expense 3.500 per month Insurance Expense 2.000 per month Miscellaneous Expense 2% of sales, paid as incurred Commissions Expense of sales Salaries Expense 6,000 per month Dec Jan Feb March Sales $55,000,000 75.00090,000 Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year. 10) Aunt's Caps, Inc., a merchandising company, has provided the following budgeted amounts for the next budget period. Beginning cash balance $30,400 Cash collections 683,000 Payments for Purchases of merchandise inventory 349,400 Selling and administrative expenses 70,700 Capital expenditures 88,600 A minimum cash balance of $250,000 is required to be maintained. The company can borrow in increments of $10,000 as and when required. Assume the company can borrow the needed funds at the end of the period. Calculate the ending cash balance for the budget period