Q1.Tilson Company has projected sales and

production in units for the second quarter of the coming year as follows: Cash-related production costs are budgeted at $7 per unit produced.

Of these production costs, 40% are paid in the month

in which they are incurred and the balance in the following month.

Selling and administrative expenses will amount to $110,000 per month, paid in the month incurred.

The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account (as credit sales) for $16 each. There are no cash sales.

Cash collections from sales are budgeted at 60% in the month of sale,

30% in the month following the month of sale, and the remaining

10% in the second month following the month of sale. Accounts

receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Required: a. can you prepare a schedule for each month showing budgeted cash disbursements for the Tilson Company. b. can you Prepare a schedule for each month showing budgeted cash receipts for the Tilson Company.

	April	May	June
Sales	55,000	45,000	65,000
Production	65,000	55,000	55,000

Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month, paid in the month incurred. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account (as credit sales) for $16 each. There are no cash sales. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Required: a. can you prepare a schedule for each month showing budgeted cash disbursements for the Tilson Company. b. can you prepare a schedule for each month showing budgeted cash receipts for the Tilson Company.

	April	May	June
Production units
Cash required per unit
Production costs

Cash disbursements:

	April	May	June
Production this month (40%)
Production prior month (60%)
Selling and administrative
Total disbursements

payments relating to the prior month (March) in April represent the balance of accounts payable at March 31. b.

	April	May	June
Sales units
Sales price
Total sales

	April	May	June
Cash receipts:
February sales
March sales
April sales
May sales
June sales
Total receipts

Q2. at March 31 Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months:

April	60,000
May	75,000
June	90,000
July	81,000

Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales. The selling price is $2 per unit. One-third of sales are paid for by customers in the month of the sale, the balance is collected in the following month. Required: a. can you Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. b. can you Prepare a schedule of expected cash collections for each of the months April, May, and June.

a.

	April	May	June	July
Budgeted sales, in units
Desired ending inventory (40%)
Total needs
Less beginning inventory
Required purchases

b.

	April	May	June
Budgeted sales, at $2 per unit
March 31 Accounts Receivable
April sales
May sales
June sales
Total cash collections

Q3. Asales budget is given below for one of the products manufactured by the Key Co.:

January	20,000 units
February	35,000 units
March	60,000 units
April	40,000 units
May	30,000 units
June	25,000 units

The inventory of finished goods at the end of each month should equal 10% of the next month's sales. However, on December 31 the finished goods inventory totaled only 1,000 units. Each unit of product requires two specialized electrical switches. Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 25% of the next month's production needs. This requirement had been met on January 1 of the current year. Prepare a production budget for the first four months of the year.

	January	February	March	April
Budgeted sales (units)
Add: Desired ending inventory
Total needs
Deduct: Beginning inventory
Units to be produced

Q4. U Balance Corporation manufactures balance bikes for toddlers. Each bike requires 2 tires at a cost of $4.00 per tire, 0.5 direct labor hours and 3 machine hours. Production line works are paid $13.00 per hour. The company has estimated total manufacturing overhead of $400,000 for the year and allocates overhead based on machine hours. Estimated machine hours total 80,000 for the period. Production peaks in November as the company prepares for the gift giving season that occurs in December. The company has planned to produce the following units for the last four months of the year and January of the next year:

September	1,300
October	1,500
November	3,000
December	2,000
January	500

Desired ending inventory of the tires used on the balance bikes is 25% of the next month's production needs. a. can you create a direct materials budget for the third quarter of the year for tires used on the balance bikes. At the bottom of the budget, indicate the total cost to purchase the tires.

a. Direct Materials Budget

	October	November	December	Quarter
Budgeted units to produce
'* materials needed per unit
Production needs
Add: desired ending inventory of RM
Total needs
Less: beginning inventory
Raw Materials to be purchased
Cost of raw materials
Cost of raw materials to be purchased