Question 4:

The Cranberries Sound Company plans to sell 75,000 units in August and 85,000 units in September. The desired monthly ending inventory in units of finished product is 75 percent of the next months estimated sales. There are 52,500 finished units in inventory on July 31. Each unit of finished product requires seven kilograms of raw material at a cost of $6.35 per pound. There are 105,000 kilograms of raw material in inventory on July 31.

Required: Compute the total estimated cost of raw-material purchases for the month of August.

Question 5:

Walking Bird, Inc., a distributor of world food, has the following historical collection pattern for its credit sales.

60 percent collected in the month of sale.

30 percent collected in the first month after sale.

6 percent collected in the second month after sale.

3 percent collected in the third month after sale.

1 percent uncollectible.

The sales on account have been budgeted for the first seven months as follows:

January $93,000

February 111,000

March. 126,000

April 141,000

May 156,000

June 171,000

July 148,500

Other data for July is as follows:

Depreciation Expense $43,000

Payments for purchases 75,000

Cash Balance on June 30. 45,000

Required: Calculate the following:

1. Cash collections in July. (15 points)

2. Cash balance as of July 31.

Question 4 The Cranberries Sound Company plans to sell 75,000 units in August and 85,000 units in September. The desired monthly ending inventory in units of finished product is 75 percent of the next month's estimated sales. There are 52,500 finished units in inventory on July 31. Each unit of finished product requires seven kilograms of raw material at a cost of $6.35 per pound. There are 105,000 kilograms of raw material in inventory on July 31 Required: Compute the total estimated cost of raw material purchases for the month of August. Question 5 Walking Bird, Inc., a distributor of world food, has the following historical collection pattern for its credit sales. 60 percent collected in the month of sale. 30 percent collected in the first month after sale. 6 percent collected in the second month after sale. 3 percent collected in the third month after sale. 1 percent uncollectible. The sales on account have been budgeted for the first seven months as follows: January 593,000 February 111,000 March 126,000 April 141,000 May 156,000 June 171,000 July 148,500 Other data for July is as follows: Depreciation Expense $43,000 Payments for purchases 75,000 Cash Balance on June 30 45,000 Required: Calculate the following: disbursements 1. Cash collections in July (15 points) 2. Cash balance as of July 31. (5 points)