Question 1

Exercise 8-10 Production and Direct Materials Budgets [LO8-3, LO8-4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 14,200 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 78,000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 51, 090 August 56,000 September 66,090 October 46,000 November 36, 090 December 26,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October. Pearl Products Limited Production Budget July August September October Budgeted unit sales Total needs Required production in unitsComplete this question by entering wur answers in the tabs below. Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Units of rail-ur materials needed per unit of nished goods Units of rail.r materials needed to meet production Total units of raw materials needed Units of rail.r materials to be purchased Exercise 8-14 Sales and Production Budgets [LO8-2, LO8-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 12, 800 13, 800 15, 800 14, 800 The selling price of the company's product is $27 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $73,800. The company expects to start the first quarter with 2,560 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 2,760 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total salesComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash collectionsComplete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Calculate the required production in units of nished goods for each quarter of the scal year and for the year as a whole. Exercise 8-16 Direct Materials and Direct Labor Budgets [LOB-4, L08-5] The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: lst Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 24,996 22,066 26,699 25,608 ' In addition, 42,000 grams of ramr materials inventory is on hand atthe start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $8,600. Each unit requires 7' grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct laborhours and direct laborers are paid $12.50 per hour. Required: 13:2. Calculate the estimated grams of raw material that need to be purchased and the cost of rawr material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Complete this question by entering your answers in the tabs below. Reqland2 Req3 Req4 Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. Estimated grams ufraw material to be purchased Cost of raw materials to be purchased Required: 1.33:2. Calculate the estimated grams of raw material that need to be purchased and the cost of ramr material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and forihe year as a whole. Complete this question by entering wur answers in the labs below. Reqland2 Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. Total cash disbursements for materials Required: 1.822. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Complete this question by entering your answers in the tabs below. Red land 2 Calculate the estimated direct labor cost for each quarter and for the year as a wl'mle. {Round "Direct laborhours per unit" and "Direct labor cost per hour" answers to 2 decimal places.) Exercise 8-18 Cash Flows; Budgeted Income Statement and Balance Sheet [LOB-2, LOB-3, LOB-9, L08- 10] Wolfpack Company is a merchandising company that is preparing a budget for the month ofJuly. It has provided the following information: Holfpack Company Balance Sheet Ilune 36 Assets Cash 35 81,860 Accounts receivable 69,600 Inventory 46,600 Buildings and equipment, net of depreciation 186,600 Total assets $ 331-490 Liabilities and Stockholders' Equity Accounts payable $ 52,408 Common stock 103,668 Retained earnings 221,600 Total liabilities and stockholders' equityr $ 333,499 Budgeting Assumptions: 1. All sales are on account Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July. 2. All merchandise purchases are on account Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is paid in the month after the purchase. The accounts payable at June 30 will be paid in July. 3. The budgeted inventory balance at July 31 is $36,700. 4. Depreciation expense is $3,720 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. 5. The company's cash budget for July shows expected cash collections of $100,500, expected cash disbursements for merchandise purchases of $72,900, and cash paid for selling and administrative expenses of $16,880. Required: 1. For the month of July, calculate the following: a. Budgeted sales b. Budgeted merchandise purchases c. Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 2 Calculate the budgeted sales for month of July. Budgeted sales for JulyRequired: 1_ For the month of July, calculate the following: a. Budgeted sales b. Budgeted merchandise purchases :2. Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31. Complete this question by enlaengytur answers in the tabs below. Calculate the budgeted merchandise purchases for month of July. Required: 1. For the month of July, calculate the following: a. Budgeted sales b. Budgeted merchandise purchases c. Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 1D Req 2 Calculate the budgeted cost of goods sold for month of July. Budgeted cost of goods sold for JulyRequired: 1. For the month of July, calculate the following: a. Budgeted sales b. Budgeted merchandise purchases c. Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 2 Calculate the budgeted net operating income for month of July. Budgeted net operating income for July2. Prepare a budgeted balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 2 Prepare a budgeted balance sheet as of July 31. Wolfpack Company Balance Sheet July 31 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equityProblem 8-23 Schedule of Expected Cash Collections; Cash Budget [LOB-2, LOB-3] The president of the retailer Prime Products hasjust approached the company's bank with a request for a $87,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difculty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $39,000. Accounts receivable on April 1 will total $170,800, of which $146,400 will be collected during April and $19,520 will be collected during May. The remainderwill be uncollectible. b. Past experience shows that 30% ofa month's sales are collected in the month ofsale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: April May June Sales (all on account] $ 242,000 $ 618,000 $ 310,000 Merchandise purchases 35 213,000 $ 181,500 $ 133,500 Payroll $ 19, 500 $ 19, 500 $ 24, 800 Lease payments 3; 29,200 $ 29,200 $ 29,200 Advertising $ 62, 500 $ 62, 500 $ 4?, 680 Equipment purchases $ 112,000 Depreciation $ 16, 800 $ 16, 800 $ 16, 800 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $174,500. d. In preparing the cash budget, assume that the $87,000 loan will be made in April and repaid in June. Interest on the loan will total $1,220. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the threemonth period. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the threemonth period- Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. Tomncashcouewons ____ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Prime Products Cash Budget April May June Quarter Beginning cash balance Add receipts Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balanceProblem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 32, 500 October 22, 500 August 75, 000 November 9,000 September 44, 000 December 9,500 The selling price of the beach umbrellas is $14 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $336,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 77,750 feet September 30 ? feet e. Gilden costs $0.60 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $38.490.e. Gilden costs $0.60 per foot. Unehalfof a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $38,490. Required: 1- Calculate the estimated sales, by month and in total, for the third quarter. 2- Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, rtugus't= September. and October. 4. Calculate the quantity.r of Gilden {in feet} that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material {Gilden} purchases by month and in total: for the third quarter. 6. Calculate the expected cash disbursements for raw material {Gildenl purchases. by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. I Reql Rqu Req3 Req4and5 Req Calculate the estimated sales, by month and in total, for the third quarter. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September. and October. 4. Calculate the quantity of Gilden {in feet} that needs to be purchased by month and in total. for the third quarter. 5. Calculate the cost ofthe raw material {Gilden} purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material {Gilden} purchases. by month and in total, for the third quarter. Complete this question by entering wur answers in the labs below. Req3 Req4and5 Calculate the expected cash collections, by month and in total, for the third quarter. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantityr of Gilden {in feet} that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the rawI material {Gilden} purchases by month and in total, for the third qualter. 6. Calculate the expected cash disbursements for rawI material {Gilden} purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated quantity of beach umbrellas that need to be produced in July, aliugust,r September, and October. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden [in feet} that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost ofthe raw material {Gilden} purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for [EIW material {Gilden} purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. 4. Calculate the quantity of Gilden (in feet} that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.) Total units of raw materials to be purchased Cost of raw maten'als to be purchased Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden [in feet} that needs to be purchased by month and in total, for the third quarter. 5- Calculate the cost of the raw material {Gilden} purchases by month and in total, for the third quarter. 6- Calculate the expected cash disbursements for raw material {Gilden} purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the labs below. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. ---_