1.
Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. April May June July Production (units) 646 700 678 658 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 1,163 pounds. Assume direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 646 700 678 units Materials requirements per unit 6 6 6 lbs. Materials needed for production (Ibs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. $ 3 $ 3 $ 3 per lb. Total budgeted direct materials costExercise 20-10 Manufacturing: Production budget LO P1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 4,000 units; October, 4,200 units; November, 6,500 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's sales. At the end of August, the company had 2,400 nished units on hand. Prepare a production budget for each of the months of September, October, and November. 0 I I I I I I Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Cash Receipts payments January $526, 000 $466, 200 February 408. 0 348, 200 March 473, 000 525, 000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance $ 50,000 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month $ 100,000 $ 0 Additional loan (loan repayment) Loan balance - End of monthExercise 20-18 Budgeted cash receipts LO P2 Jasper Company has sales on account and for cash. Specifically, 63% of its sales are on account and 37% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $528,000 for April, $538,000 for May, and $563,000 for June. The beginning balance of Accounts Receivable is $295,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. - -_ -!!! Cash receipts from: Cash sales Collection of accounts receivable Total budgeted cash receipts
