Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 120,800 units. The following unit sales are
Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 120,800 units. The following unit sales are budgeted during the rest of the year: second quarter, 302,000 units; third quarter, 221,000 units; and fourth quarter, 452,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Second Quarter Third Quarter 221,000 302,000 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units 452,000 Units to produce Ramos Company provides the following budgeted production for the next four months. Units to produce April 510 May 640 June 610 July 610 Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 765 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June. RAMOS COMPANY Direct Materials Budget April May June Units to produce 510 640 610 units Materials needed for production (pounds) Total materials requirements (pounds) 0 Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $44,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments July $ 95,000 123,000 August $ 121,000 109,900 September $ 160,000 137,400 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) MOTORS CORPORATION Cash Budget July August September Total cash available 0 0 0 Less: Cash payments for Preliminary cash balance 0 0 0 Ending cash balance $ 0 $ 0 $ 0 Loan balance $ 0 $ 0 Loan balance, Month-end $ 0 $ 0 $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started