Page 2 Question No.3 (25 marks maximum) Gordon Recycle plans to produce 1,500 recycle bins during April. Each bin requires 1.7 kilograms of plastic and 0.1 hours of direct labour Plastic costs $2.15 per kilogram. Gordon pays its employees $12.50 per hour Manufacturing overhead is applied at a rate of 150% of direct labour costs. Finished plastic lids are purchased separately from another supplier Gordon has 400 kilograms of plastic in beginning inventory and wants to have 550 kolograms in ending inventory. Required Answer the following questions, substantiating your statements with the formulas and calculation: *) How many kilograms of plastic direct materials should Gordon plan to buy during April b) How much should Gordon budget for direct labour for April? c) How much manufacturing overhead will be charged to each recycle bin in April? d) What is the cost per unit of the bins produced in April? Question No. 130 marks maximum) Markus Corporation's sales of gizmos are 10% for cash and 90% on credit. Past collection history indicates that credit sales are collected as follows: 25 in the month of sale 70% in the month following sale in the second month following sale In January, sales were $39,000 and February sales were $43,000.Projected sales for March are 4,000 giamos at $9 each. Projected sales for April are 4,700 games at $11 each The cash balance at March 1 was $7,350. Markus expects to purchase $22,000 of materials in February and $19,000 of materials in March Three-quarters of all purchases are paid for in the month of purchase, and the other one fourth are paid for in the month following the month of purchase In addition, a 3% discount is allowed for payments made in the month of purchase All other fixed expenses are $6.570 per month and are paid in the month of purchase Required a) Prepare in good form a cash budget for March b) Why is the cash budget important? The end of the assignment Page 2 of 2 Page 1 of 2 Question No.3 (25 marks maximum) Gordon Recycle plans to produce 1,500 recycle bins during April. Each bin requires 1.7 kilograms of plastic and 0.1 hours of direct labour Plastic costs $2.15 per kilogram. Gordon pays its employees $12.50 per hour. Manufacturing overhead is applied at a rate of 150% of direct labour costs. Finished plastic lids are purchased separately from another supplier. Gordon has 400 kilograms of plastic in beginning inventory and wants to have 550 kilograms in ending inventory Required Answer the following questions, substantiating your statements with the formulas and calculation: a) How many kilograms of plastic direct materials should Gordon plan to buy during April b) How much should Gordon budget for direct labour for April? c) How much manufacturing overhead will be charged to each recycle bin in April? d) What is the cost per unit of the bins produced in April? Question No. 4 30 marks maximum) Markus Corporation's sales of gizmos are 10% for cash and 90% on credit. Past collection history indicates that credit ales are collected as follows: 25% in the month of sale 70% in the month following se 5% in the second month following sale In January, sales were $39,000 and February sales were $43,000. Projected sales for March are 4,000 giamos at $9 each. Projected sales for April are 4,700 giamos a $11 each The cash balance at March 1 was $7,350 Markus expects to purchase $22,000 of materials in February and $19.000 of materials in March. Three-quarters of all purchases are paid for in the month of purchase, and the other one fourth are paid for in the month following the month of purchase In addition, a 3% discount is allowed for payments made in the month of purchase Al other fixed expenses are $6.570 per month and are paid in the month of purchase Required a) Prepare in good form a cash budget for March b) Why is the cash budget important? The end of the assignment Page 2 of 2 m