1. Simple Manufacturing Company makes units that each requires 4 pounds of material at $3 per pound. Simple Manufacturing is planning that 450 and 750 units will be built in May and June, respectively. This is a brand new product so there is no beginning inventory. Simple Manufacturing desires to keep material on hand equal to 15% of the next month's production needs. Use this information to determine total cost of May's raw material purchases. Round answer to closest dollar. (no cents)
2. Widget Manufacturing Company is preparing a profit budget and has projected that net sales will equal $480,000 for the period and that fixed manufacturing costs will be $110,000.Additionally, Widget expects variable manufacturing costs to be 40% of net sales. Widget manufacturing expects no changes to any inventory values from the beginning of the period to the end of the period. Use this information to determine Widget Manufacturing Company's budgeted gross profit.Enter as a whole number (no cents).
3. Widget manufacturing Company began operations on January 1. All sales are on credit. Widget has sales budgeted as $170,000 for January and $240,000 for February. Accounts Receivable collections are expected to be 60% in the month of sale, 30% the next month, and 10% in the third month. Use this information to determine the dollar value ofFebruary Expected Cash Collections from Customers. Enter as a whole number (no cents).
4. York Corporation has budgeted activity for October to reflect net income $250,000. All sales are credit sales. Receivables are planned to increase by $35,000, payables to decrease by $30,000 and Depreciation Expense is $30,000. Use this information to determine how much cash will increase (decrease) during the month of October. Enter as a whole number (no cents).