High End Crockery Corp makes pottery bowls. The following information is available:

Budgeted Selling Price

$200

each

Budgeted Unit Sales

December

4,000

January

3,500

February

2,500

March

2,000

April

1,800

Desired ending finished goods inventory

15%

of next month's sales

Pounds of clay needed per bowl

4

Price per pound of clay

$2.50

Desired ending inventory direct materials

30%

of next month's production needs

December purchases for direct materials

$37,525

Direct labor hours per bowl

6

Direct labor cost per hour

$22.50

Variable manufacturing overhead rate

$3.20

per direct labor hour

Fixed manufacturing overhead

$2,300

per month (paid in cash monthly)

Variable operating expenses per unit sold

$16

(paid in cash monthly)

Fixed operating expenses

Salaries

$2,800

per month (paid in cash monthly)

Studio Rent

$4,500

per month (paid in cash monthly)

Depreciation

$1,600

per month

Interest expense

$3.000

per month (paid in cash monthly)

Income Tax Expense

$5,500

per month (paid in cash monthly)

Company sales

Cash Sales

35%

Credit Sales

65%

Credit sales collections

Month of sale

40%

Month after sale

55%

Never collected

5%

Cash payments for materials

In month of purchase

60%

In month after purchase

40%

Beginning cash balance

$65,000

Minimum required cash balance

$200,000

What are the total number of bowls budgeted to be sold for the quarter?

What is the total budgeted revenue for March?

What is the desired ending inventory for January?

What is the desired ending inventory for the quarter?

What is the desired beginning inventory for March?

How many units should be produced in January?

How many units should be produced in February?

How many units should be produced in March?

How many units should be produced for the quarter?

How many pounds of clay are required for production in January?

How many pounds of clay are required for production in February?

How many pounds of clay are required for production in March?

What is the desired ending inventory of clay for January?

What is the desired ending inventory of clay for March?

What is the desired beginning inventory of clay for January?

What quantity of clay should be purchased for March?

What is the total cost of direct materials to be purchased for the quarter?

What are the total direct labor hours required for the quarter?

What is the total cost of direct labor for the quarter?

What is the total variable overhead for February?

What is the fixed overhead for the quarter?

What is the total overhead (variable + fixed) for the quarter?

How many units are produced for the quarter?

What is the average manufacturing overhead for the quarter (round to nearest penny)?

What is the average COGS per unit?

What are the total variable operating expenses for March?

What are the total fixed expenses for February?

What are the total operating expenses for the quarter?

What is the total cost of goods sold from the income statement for the quarter ended March 31?

What is the operating income from the income statement (round to nearest penny)?

What is the net income from the income statement (round to nearest penny)?

How much cash is collected (on cash sales and credit sales) in January?

How much cash is collected (on cash sales and credit sales) for the quarter?

What are the cash payments January on purchases made in December?

What are the cash payments for operating expenses in February?

What are the total cash payments for the quarter?

What is the ending cash balance before financing for January?

What is the ending cash balance before financing for February

What is the ending cash balance before financing for March

Does High End Crockery Corp ever need to borrow money to meet their minimum cash balance requirement?

		Yes
		No