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Directions Below is information for Charlotte Company. Using this information, answer the following questions on the Calculation Below file. Show your work and format appropriately.
Directions | ||||||||
Below is information for Charlotte Company. Using this information, answer the following questions on the "Calculation Below" file. Show your work and format appropriately. | ||||||||
Charlotte Company makes one product and it provided the following information to help prepare the master budget: | ||||||||
A. | The budgeted selling price per unit is $70. Budgeted unit sales for June, July , August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit. | |||||||
B. | Forty percent of credit sales are collected in the month of the sale and 60% in the following month. | |||||||
C. | The ending finished goods inventory equals 20% of the following month's unit sales. | |||||||
D. | The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials the raw materials cost $2.00 per pound. | |||||||
E. | Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. | |||||||
F. | The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. | |||||||
G. | The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000. | |||||||
Required (completed on the "Calculations Below"): | ||||||||
1 | What are the budgeted sales for July? | |||||||
2 | What are the expected cash collections for July? | |||||||
3 | What is the accounts receivable balance at the end of July? | |||||||
4 | According to the production budget, how many units should be produced in July? | |||||||
5 | If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? | |||||||
6 | What is the estimated cost of raw materials purchases for July? | |||||||
7 | In July what are the total estimated cash disbursement for raw materials purchases? Assume the cost of raw materials purchases in June is $88,880. | |||||||
8 | What is the estimated accounts payable balance at the end of July? | |||||||
9 | What is the estimated raw materials inventory balance at the end of July? | |||||||
10 | What is the total estimated direct labor cost for July? | |||||||
11 | If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated unit product cost? | |||||||
12 | What is the estimated finished goods inventory balance at the end of July? | |||||||
13 | What is the estimated cost of goods sold and gross margin for July? | |||||||
14 | What is the estimated total selling and administrative expense for July? | |||||||
CALCULATIONS BELOW:
1 | What are the budgeted sales for July? | 8 | What is the estimated accounts payable balance at the end of July? | |||||||||||||||
2 | What are the expected cash collections for July? | 9 | What is the estimated raw materials inventory balance at the end of July? | |||||||||||||||
10 | What is the total estimated direct labor cost for July? | |||||||||||||||||
3 | What is the accounts receivable balance at the end of July? | |||||||||||||||||
4 | According to the production budget, how many units should be produced in July? | 11 | If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated unit product cost? | |||||||||||||||
5 | If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? | 12 | What is the estimated finished goods inventory balance at the end of July? | |||||||||||||||
6 | What is the estimated cost of raw materials purchases for July? | 13 | What is the estimated cost of goods sold and gross margin for July? | |||||||||||||||
7 | In July what are the total estimated cash disbursement for raw materials purchases? Assume the cost of raw materials purchases in June is $88,880. | 14 | What is the estimated total selling and administrative expense for July? | |||||||||||||||
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