Question
Direct Labor Cost Budget MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for
Direct Labor Cost Budget
MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
| Junior | Pro Striker | |
| Production budget | 5,800 units | 21,900 units |
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
| Forming Department | Assembly Department | |
| Junior | 0.2 hour per unit | 0.4 hour per unit |
| Pro Striker | 0.35 hour per unit | 0.6 hour per unit |
The direct labor rate for each department is as follows:
| Forming Department | $19 per hour |
| Assembly Department | $13 per hour |
Prepare the direct labor cost budget for March.
| MatchPoint Racket Company | ||
| Direct Labor Cost Budget | ||
| For the Month Ending March 31 | ||
| Forming Department | Assembly Department | |
| Hours required for production: | ||
| Junior | fill in the blank 1 | fill in the blank 2 |
| Pro Striker | fill in the blank 3 | fill in the blank 4 |
| Total hours required | fill in the blank 5 | fill in the blank 6 |
| Hourly rate | x$fill in the blank 7 | x$fill in the blank 8 |
| Total direct labor cost | $fill in the blank 9 | $fill in the blank 10 |
Schedule of Cash Collections of Accounts Receivable
Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:
| May | $200,000 |
| June | 280,000 |
| July | 410,000 |
All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 35% in the month following the sale, and the remainder in the second month following the sale.
Prepare a schedule indicating cash collections from sales for May, June, and July.
| Furry Friends Supplies Inc. | |||
| Schedule of Collections from Sales | |||
| For the Three Months Ending May 31 | |||
| May | June | July | |
| May sales on account: | |||
| Collected in May | fill in the blank 1 | ||
| Collected in June | fill in the blank 2 | ||
| Collected in July | fill in the blank 3 | ||
| June sales on account: | |||
| Collected in June | fill in the blank 4 | ||
| Collected in July | fill in the blank 5 | ||
| July sales on account: | |||
| Collected in July | fill in the blank 6 | ||
| Total cash collected | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
27th edition
978-1337272094, 1337272094, 978-1337514071, 1337514071, 978-1337899451
