6-34 Cash budget (continuation of 6-33). Refer to the information in Problem 6-33

Assume the following: Pet Luggage (PL) does not make any sales on credit. PL. sells only to the public, and accepts cash and credit cards: 90% of its sales are to customers using credit cards, for which PL gets the cash right away less a 2% transaction fee.

Purchases of materials are on account. PL pays for half the purchases in the period of the purchase. and the other half in the following period. At the end of March, PL owes suppliers $8,400

PL. plans to replace a machine in April at a net cash cost of $13,800 Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of course, depreciation, which is not a cash flow. $22.500 of the manufacturing cost and $12,500 of the nonmanufacturing cost for April is depreciation,

PL currently has a $2,600 iyan at an annual interest rate of 24%. The interest is paid at the end of each month. If PL has more than $10,000 cash at the end of April it will pay back the loan. PL. owes $5,400 in income taxes that need to be remitted in April. PL. has cash of $5,200 on hand at the end of March.

Prepare a cash budget for April for Pat Luggage

PLEASE SHOW ALL SOLUTION STEPS, CALCULATIONS AND FORMULAS

6-34 Cash budget (continuation of 6-33). Refer to the information in Problem 6-33. Assume the following: Pet Luggage (PL) does not make any sales on credit. PL sells only to the public, and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which PL gets the cash right away less a 2% transaction fee. Purchases of materials are on account. PL pays for half the purchases in the period of the purchase, and the other half in the following period. At the end of March, PL owes suppliers $8,400. PL plans to replace a machine in April at a net cash cost of $13,800. Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of course, depreciation, which is not a cash flow. $22,500 of the manufacturing cost and $12,500 of the nonmanufacturing cost for April is depreciation. PL currently has a $2,600 irfan at an annual interest rate of 24%. The interest is paid at the end of each month. If PL has more than $10,000 cash at the end of April it will pay back the loan. PL owes $5,400 in income taxes that need to be remitted in April. PL has cash of $5,200 on hand at the end of March. Prepare a cash budget for April for Pet Luggage. 6-33 Comprohensive problem with ABC costing. Pet Luggage Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doers, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Quantities per Unit of Output Invenfory Information, Diret Materials Pet Luggage accounts for direct materials using a FIFO cost flow assumption. Sales and Inventory Iaformation, Finished Goods Pet Luggage uses a FIFO cost flow assumption for finished goods inventory. Pet Luggage uses an activity-besed costing system and classifies overhead into three activity pools: Sotup, Processing, and Inspaction. Activity rates for these activities are $130 por sotup-hour, \$5 per machine-hour, and $20 per inspection-hour, respectively. Other information follows: Nonmanufacturing fixed costs for March equal $32000, of which half are salaries. Salaries are expected to increase 5% in April. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales rovenue, Prepare the following for April: 1. Revenues budget 2 Production budget in units 3. Direct materlal usago budget and direct material purchases budget: 4. Direct manufacturing labor cast budgot 5. Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending finished goods inventory and ending invemtories budget 7. Cost of goods sold budget 8. Nonmanufacturing costs budgot 9. Budgoted Income statement (Ignore income taxes) 6-34 Cash budget (cantinuation of 6-33). Refer to the information in Problem 6-33