Question
April May June July August Unit Sales 23,000 25,000 27,000 20,000 20,000 Sales Price $10 Desired Ending Inventory for Finished Goods 20% of next month's
|
| April | May | June | July | August | |
| Unit Sales | 23,000 | 25,000 | 27,000 | 20,000 | 20,000 | |
| Sales Price | $10 | |||||
| Desired Ending Inventory for Finished Goods | 20% | of next month's sales in units | ||||
| Desired Ending Inventory for Material Units | 10% | of next month's materials needed for production | ||||
| Cost of one pound of materials | $0.40 | |||||
| Units of Direct Materials to make one unit | 4 | |||||
| Minutes of Direct Labor to make one unit | 12 | |||||
| Direct Labor Costs per Hour | $15 | |||||
| Overhead Costs percentage of Direct Labor | 175 % | |||||
| Minimum cash balance | $ 20,000.00 | |||||
| Cash collections in month of sale | 65% | |||||
| Cash collections in first month after sale | 25% | |||||
| Cash collections in third month after sale | 10% | |||||
| Cash Payments in month of purchase | 70% | |||||
| Cash Payments in the first month after purch | 30% | |||||
| Selling Costs per month | $ 10,000.00 | |||||
| Administrative Costs per month | $ 15,000.00 | |||||
| Annual Interest Rate for Letter of Credit | 12% | |||||
| Annual Interest Rate Earned on Excess Cash | 4% | |||||
| The beginning cash balance is $10,000; sales revenue for February and March are $300,000 and $250,000, respectively.
1.Create Overhead Budget for the quarter 2. Create Cash Receipts of Sales Revenue for the quarter. | ||||||
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Guide To Financial Audit In Life And Health Insurance
Authors: Naser-Eddine Nebbache
1st Edition
6205873397, 978-6205873397
