Managerial Accounting qestions

The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming scal year. First Quarter Second Quarter Third Quarter Fourth Quarter Budgeted unit sales 17, 300 16, 300 15, 300 16, 300 The selling price ofthe company's product is $30.00 per unit. Management expects to collect 70% of sales in the quarter in which the sales are made and 20% in the following quarter, and 10% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the rst quarter, is $79,000. The company expects to start the rst quarter with 4,500 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 4,700 units. Required: 1a. Compute the company's total sales. Required: 1. Prepare a schedule of expected cash collections for December. Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collections 02. Prepare a schedule of expected cash disbursements during December for merchandise purchases. Schedule of Expected Cash Disbursements Payments to suppliers: November purchases December purchases Total cash payments 0. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assume hat any interest will not be paid until the following month. Beginning cash balance Add collections from customers Total cash available Less cash dbhursements: Payments to suppliers for inventory Selling and administrative expenses New web sewer Dividends paid Total cash disbursements Excess (deciency) of cash available over disbursements Financing: Borrowings Repayments Interest Total nancing 0 Ending cash balance $ 0 Scott Products Inc. is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Scott Products has had to borrow money during the third quarter to support peak sales of back toschool materials, which occur during August The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for for July through October are as follows: July August September October Sales $40, UUU $70, 000 $50, UUU $45, 000 Cost of goods sold 24, DUO 42, DUO 30, BUD 2?, DUB Gross margin 16, DUO 28, DUO 20, BUD 18, BUD Selling and administrative expenses. Selling expense 1200 11, TUE! 13, SUD 7, 300 Administrative expense* 5, 600 7, 200 6, 100 5, 900 Total expenses 12, 800 18, 900 14, 600 13, 200 Operating income :3 3, 200 $ 9, 100 $ 5, 400 $ 4, 800 ' Includes $2,000 depreciation each month. b. Sales are 20% for cash and 80% on credit. c. Credit sales are collected over a threemonth period, with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totalled $30,000, and June sales totalled $36,000. d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for inventory purchases at June 30 total $11,700. e. The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $18,000. f. Land costing $4,500 will be purchased in July. g. Dividends of $1,000 will be declared and paid in September. h. The cash balance on June 30 is $8,000; the company must maintain a cash balance of at least this amount at the end of each ' month. i. The company has an agreement with a local bank that allows the company to borrow up to a total loan balance of $40,000. The ' interest rate on these loans is 1% per month. All borrowing is done at the beginning ofa month. The company would, as far as it is able, repay the loan at the end of each month. Interest must be paid at the end of each month based on the outstanding loans for that month. There are no loans outstanding as at June 30. Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. Cash sales Sales on account: September Total cash collections 6 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. Merchandise Purchases Budget July August September October Budgeted cost of goods sold Total needs Book Required inventory purchases ferences b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. July August September Quarter Accounts payable, June 30 July purchases August purchases September purchases Total cash collections3. Prepare a cash budget for July, August, and September and for the quarter in total. (Round your intermediate calculations and final answers to the nearest whole dollar. Cash deficiency, repayments and interest should be indicated by a minus sign.) Scott Products, Inc. Cash Budget For the Quarter Ended September 30 July August September Quarter ok Cash balance, beginning Add collections from sales Total cash available nces Less disbursements: For inventory purchases For selling expenses For administrative expenses For land For dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayment Interest Total financing Cash balance, ending1-b. Complete the schedule of expected cash collections. Graber Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collectionsed 2. Prepare the company's production budget for the upcoming fiscal year. k Graber Corporation ces Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales Total units needed 0 0 0 0 0 Required production 0 0 0 0Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $3 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below: Year 2 Year 3 First Second Third Fourth First Budgeted production, in calculators 66, 000 96, 000 156, 000 106, 000 86, 000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end of a quarter must be equal to 15% of the following quarter's production needs. A total of 42,000 chips will be on hand to start the first quarter of year 2. Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Micro Products, Inc. Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Required production in calculators Number of chips per calculator Production needs-chips Total needs O 0 0 0 0 Required purchases-chips Total cost of purchases i. . .The Bakery Department of Culbert Dessert Corporation has submitted the following forecast offruit pies to be produced by quarter for the upcoming scal year. First Second Third Fourth Quarter Quarter Quarter Quarter Unite to be produced 9, 100 12, 100 10, 100 14, 100 Each unit requires 060 direct labourhours, and direct labourhour workers are paid $1000 per hour, In addition, the variable manufacturing overhead rate is $2.00 per direct labourhour. The fixed manufacturing overhead is $25,750 per quarter. The only nonecash element of manufacturing overhead is depreciation, which is $7,550 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced, Units to be produced Direct labourtjme per unit (hours) Total direct labourihours needed Direct labour cost per hour I I Total direct labour oost 2. Prepare the company's manufacturing overhead budget. As per Schedule 5, your manufacturing overhead budget should also include the budgeted cash disbursements for overhead. Culbert Dessert Corporation Manufacturing Overhead Budget First Second Third Fourth Quarter Quarter Quarter Quarter Year Budgeted direct labour-hours Variable overhead rate Variable manufacturing overhead $ 0 $ 0 $ 0 0 Fixed manufacturing overhead Total manufacturing overhead 0 0 0 0 0 Cash disbursements for manufacturing overhead $ 0 S 0 $ 0 $ 0 0The direct labour budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours: 1st 2nd Brd 4th Quarter Quarter Quarter Quarter Budgeted direct labour-hours 9, 800 9, 100 9, 400 10, 200 The company's variable manufacturing overhead rate is $4.25 per direct labour-hour and the company's fixed manufacturing overhead s $66,000 per quarter. The only non-cash item included in fixed manufacturing overhead is depreciation, which is $16,500 per quarter. Required: 1. Complete the company's manufacturing overhead budget for the upcoming fiscal year. Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead 0 0 $ 0 0 $ 02. Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Total budgeted manufacturing overhead for the year Budgeted direct labour-hours for the year Predetermined overhead rate for the yearYou have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December'l is $43,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. October November December Cash sales $ 76, 200 $ 70, 800 $ 84, 400 Sales on account 520, 000 527, 000 549, 000 c. Purchases ofinventory will total $370,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $193,000, all of which will be paid in : December. d. Selling and administrative expenses are budgeted at $433,000 for December. Of this amount, $99,800 is for depreciation. e. A new web server for the Marketing Department costing $78,500 will be purchased for cash during December, and dividends : totalling $18,500 will be paid during the month. f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed