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please show the working out Mumbower Corporation makes one product and has provided the following information to help prepare the master budget for the next
please show the working out
Mumbower Corporation makes one product and has provided the following information to help prepare the
master budget for the next four months of operations:
Credit sales are collected:
in the month of the sale
in the following month
Raw materials purchases are paid:
in the month of purchase
in the following month
The ending finished goods inventory should equal of the following month's sales. The ending raw materials
inventory should equal of the following month's raw materials production needs.
Required:
a What are the budgeted sales for November?
b What are the expected cash collections for November?
c What is the budgeted accounts receivable balance at the end of November?
d According to the production budget, how many units should be produced in November?
e If pounds of raw materials are needed for production in December, how many
pounds of raw materials should be purchased in November?
f What is the estimated cost of raw materials purchases for November?
g If the cost of raw material purchases in October is $ then in November what are
the total estimated cash disbursements for raw materials purchases?
h What is the estimated accounts payable balance at the end of November?
i What is the estimated raw materials inventory balance at the end of November?
j What is the total estimated direct labor cost for November assuming the direct labor
workforce is adjusted to match the hours required to produce the forecasted number of units
produced?
k For simplicity, we will assume that there is no fixed manufacturing overhead and that the
variable manufacturing overhead is $ per direct laborhour. What is the estimated unit
product cost?
What is the estimated finished goods inventory balance at the end of November?
What is the estimated cost of goods sold and gross margin for November?
What is the estimated total selling and administrative expense for November?
o What is the estimated net operating income for November?
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