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Hi, I need help on questions below. Morganton Company makes one product and it provided the following information to help prepare the master budget for
Hi, I need help on questions below.
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9, 500, 26, 000, 28, 000, and 29, 000 units, respectively. All sales are on credit. Forty-percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 25% of the following month's unit sales. The ending raw materials inventory equals 15% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 per pound. Forty-percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65, 000. What are the expected cash collections for July? Total cash collections $ Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9, 200, 23, 000, 25, 000, and 26, 000 units, respectively. All sales are on credit. Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 20% of the following month's unit sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound. Thirty-percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $62, 000. What are the budgeted sales for July? Budgeted sales $ Schedules of Expected Cash Collections and Disbursements [L02, L04, L08] Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: The cash balance at the beginning of September is $10, 700. Actual sales for July and August and expected sales for September are as follows: July August September Cash sales $ 6, 300 $ 4, 200 $ 7, 500 Sales on account 18, 000 34, 000 38, 000 Total sales $ 24, 300 $38, 200 $45, 500 Sales on account are collected over a three-month period as follows: 5% collected in the month of sale, 60% collected in the month following sale, and 31% collected in the second month following sale. The remaining 4% is uncollectible. Purchases of inventory will total $35, 000 for September. Thirty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $17, 000, all of which will be paid in September. Selling and administrative expenses are budgeted at $14, 000 for September. Of this amount, $5, 000 is for depreciation. Equipment costing $16, 000 will be purchased for cash during September, and dividends totaling $5, 000 will be paid during the month. The company maintains a minimum cash balance of $6, 700. An open line of credit is available from the company's bank to bolster the cash balance as needed. Required: Prepare a schedule of expected cash collections for September. (Do not round intermediate calculations.) Schedule of Expected Cash Collections September cash sales $ September collections on account: July sales August sales September sales Total cash collections $ Prepare a schedule of expected cash disbursements for inventory purchases for September. (Do not round intermediate calculations.) Schedule of Expected Cash Disbursements Payments to suppliers: August purchases $ September purchases Total cash payments $ Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. Assume that any interest will not be paid until the following month. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Calgon Products Cash Budget For the Month of September Cash balance, beginning $ Add cash receipts: Collections from customers Total cash available before current financing Less disbursements: Payments to suppliers for inventory $ Selling and administrative expenses Equipment purchases Dividends paid Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending $Step by Step Solution
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