This is for my managerial accounting course this material is from the Wiley series.

4/16/2016 Problem 23-4A Problem 234A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January Sales February $426,240 $473,600 Direct materials purchases 142,080 148,000 Direct labor 106,560 118,400 Manufacturing overhead 82,880 88,800 Selling and administrative expenses 93,536 100,640 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,184 of depreciation per month. Other data: 1. Credit sales: November 2016, $296,000 December 2016, $378,880. 2. Purchases of direct materials: December 2016, $118,400. 3. Other receipts: JanuaryCollection of December 31, 2016, notes receivable $17,760 FebruaryProceeds from sale of securities $7,104. 4. Other disbursements: FebruaryPayment of $7,104 cash dividend. The company's cash balance on January 1, 2017, is expected to be $71,040. The company wants to maintain a minimum cash balance of $59,200. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January November $ February $ 0 December January February http://edugen.wileyplus.com/edugen/student/mainfr.uni 1/3 4/16/2016 Problem 23-4A Total collections $ $ Expected Payments for Direct Materials January December February $ $ $ $ January February Total payments Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.) COLTER COMPANY Cash Budget January $ February $ : : http://edugen.wileyplus.com/edugen/student/mainfr.uni 2/3 4/16/2016 Problem 23-4A : : $ Question Attempts: 0 of 1 used $ SAVE FOR LATER SUBMIT ANSWER Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/student/mainfr.uni 3/3 4/16/2016 Problem 24-3A Problem 243A Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Manufacturing Costs Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $48,380 $47,280 $1,100 Favorable Variable costs Direct materials Direct labor 57,820 54,520 Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable 7,080 7,190 Maintenance Total variable 181,130 176,350 3,300 Favorable 110 Unfavorable 4,780 Favorable Fixed costs Rent 12,100 12,100 -0- Neither Favorable nor Unfavorable Supervision 19,000 19,000 -0- Neither Favorable nor Unfavorable Depreciation 7,300 7,300 -0- Neither Favorable nor Unfavorable Total fixed 38,400 38,400 -0- Neither Favorable nor Unfavorable $219,530 $214,750 $4,780 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is = $ + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY http://edugen.wileyplus.com/edugen/student/mainfr.uni 1/4 4/16/2016 Problem 24-3A Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Budget Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ $ $ $ http://edugen.wileyplus.com/edugen/student/mainfr.uni $ $ 2/4 4/16/2016 Problem 24-3A In September, 63,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Budget Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ $ $ $ http://edugen.wileyplus.com/edugen/student/mainfr.uni $ $ 3/4 4/16/2016 Problem 24-3A Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/student/mainfr.uni 4/4