From the slides: 1. EXPECTED CASH COLLECTIONS - For May and June, find: 1 a. Total Cash Collections b. Ending balance of Accounts Receivable 2. PRODUCTION BUDGET - For May and June, find: a. Number of Units Produced b. Ending balance of Finished Goods Inventory 3. DIRECT MATERIALS BUDGET - For May and June, find: a. Direct Materials Purchases * Assume July Production was 23,000 units. You need this information to fin direct materials purchases 4. EXPECTED CASH DISBURSEMENTS FOR MATERIALS For May and Jun a. Total Cash Payments b. Ending balance of Accounts Payable 5. DIRECT LABOR BUDGET For May and June, find: a. Direct Labor Hours Required b. Wages Paid (in SS) 6. MANUFACTURING OVERHEAD BUDGET For May and June, find: a. Total Manufacturing Overhead Costs b. Cash Disbursements for Overhead 7. ENDING FINISHED GOODS INVENTORY BUDGET Find: a. Total Per-Unit Manufacturing Cost at Quarter End (June) b. Value of Ending Finished Goods Inventory at Quarter End (June) 8 S&A EXPENSE BUDGET For May and June, find: a S&A Expense b. Cash Disbursement for S&A Expense EEEE == Elf Picture A Convert to SmartArt Exercise 1 March, April, and May sales are $100,000, $120,000, and $125,000, respectively. A total of 80% of all sales are credit sales and 20% are cash sales. A total of 60% of credit sales are collected in the month of the sale and 40% are collected in the next month. There are no bad debt expenses. What is the amount of cash collections fo April? a. $89,600 b. $111,600 c. $113,600 d. $132,600 Exercise 2 Referring to the facts in question 1 above, what is accounts receivable balance at the end of May? a. $40,000 b. $50,000 c. $72,000 d. $80,000 Exercise 3 If a company has a beginning merchandise inventory of $50,000, a desired ending merchandise inventory of $30,000, and a budgeted cost of goods sold of $300,00 what is the amount of required inventory purchases? a. $320,000 b. $280,000 c. $380,000 d. $300,000 Exercise 4 Budgeted unit sales for March, April, and May are 75,0 80,000, and 90,000 units. Management desires to maint an ending inventory equal to 30% of the next month's u sales. How many units should be produced in April? a. 80,000 units b. 83,000 units c. 77,000 units d. 85,000 units