QUESTION 3

QUESTION 4

Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: January February Sales $357,000 $398,000 Direct materials purchases 121,000 111,000 Direct labour 85,000 112,000 Manufacturing overhead 60,000 74,000 Selling and administrative expenses 76,000 80,000 All sales are on account. Lorch expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2020, $198,000: December 2020, $281,000 2. Purchases of direct materials: December 2020, $91,000 3. Other receipts: January-collection of December 31, 2020, notes receivable $4,000; February-proceeds from sale of securities $6,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2021, to be $49,000. It wants to maintain a minimum cash balance of $41,000. Prepare schedules for (1) the expected collections from customers. Month January February Question 3 of 4 Prepare schedules for (1) the expected collections from customers. Month January February November $ $ December January February $ (2) the expected payments for direct materials purchases. Month January February December $ $ January February 09 $ lestion 3 of 4 -/4 E Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Beginning cash balance $ $ Add: Cash receipts -/1 E iew Policies urrent Attempt in Progress Pacer Inc. is preparing its direct labour budget for 2020 from the following production budget for a full calendar year: Quarter Units Quarter Units 1 19,600 3 34,400 2 24,800 4 30,500 Each unit requires 1.4 hours of direct labour. Prepare a direct labour budget for 2020. Wage rates are expected to be $18 for the first two quarters and $21 for the remaining two quarters. PACER INC. Direct Labour Budget For the Year Ending December 31, 2020 Quarter 1 2 3 $ $ $ $ $ GA $ $ Direct labour cost per hour Direct labour hours per unit Indirect labour Direct labour hours required Units to produce uestion 4 of 4 -/1 iew Policies urrent Attempt in Progress Pacer Inc. is preparing its direct labour budget for 2020 from the following production budget for a full calendar year: Quarter Units Quarter Units 1 19,600 3 34,400 2 24,800 4 30,500 Each unit requires 1.4 hours of direct labour. Prepare a direct labour budget for 2020. Wage rates are expected to be $18 for the first two quarters and $21 for the remaining two quarters. PACER INC. Direct Labour Budget For the Year Ending December 31, 2020 Quarter 2 3 For the year GA $ $ GA $ $ $ $