Wells Company reports the following budgeted sales: September, $50,000; October, $58,000; and November, $88,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November. The Guitar Shoppe reports the following budgeted sales: August, $170,000; and September, $270,000. For its total sales, 30% are immediately collected in cash, 45% are credit sales and collected in the month following sale, and the remaining 25% are written off as uncollectible. Prepare a schedule of cash receipts from sales for September. Each unit requires 5 hours of direct labor at a rate of $17 per hour. The company applies variable overhead at the rate of $10 per direct labor hour. Budgeted fixed factory overhead is $189,000 per month. Prepare a factory overhead budget for August. QS 7-23 (Algo) Cash budget LO P2 Santos Company is preparing a cash budget for February. The company has $18,000 cash at the beginning of February and budgets $67,000 in cash receipts from sales and $103,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1 Note: Negative cash balances, if any, should be indicated with minus sign. Exercise 7.6 (Algo) Manufacturing: production budgets LO P1 Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 263,400 units. The following unit sales are budgeted during the rest of the year: second quarter, 439,000 units; third quarter, 394,000 units; and fourth quarter, 443,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 60% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. QS 7.6 (Algo) Manufacturing: Production budget LO P1 Champ Incorporated budgets the following sales in units for the coming two months. Each month's ending inventory of finished units should be 50% of the next month's sales. The April 30 finished goods inventory is 120 units. Prepare the production budget for May. Each unit requires 4 pounds of direct materials, which cost $7 per pound. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. As of June 30 , the company has 5,520 pounds of direct materials in inventory. Prepare the direct materials budget for July. Electro Company budgets production of 560,000 electric panels in the second quarter and 630,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $1.20 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 89,600 pounds. Prepare a direct materials budget for the second quarter. QS 7-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for June and July of $410,000 and $408,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 15% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 25% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31 . Hint: Determine the percent of June and July sales that are uncollected at July 31. QS 7-10 (Algo) Manufacturing: Direct labor budget LO P1 Each unit requires 5 hours of direct labor at a rate of $17 per hour. Prepare a direct labor budget for July. QS 7.8 (Algo) Manufacturing: Production budget LO P1 Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 20% of the next month's budgeted unit sales. October's ending inventory equals 92,000 units. November and December sales are budgeted to be 460,000 units and 410,000 units, respectively. Prepare the production budget for November. QS 7-19 (Algo) Schedule of cash receipts LO P2 Music World reports the following budgeted sales: August, $140,000; and September, $260,000. Cash sales are 60% of total sales, and all credit sales are collected in the month following the sale. Prepare a schedule of cash receipts from sales for September. QS 7.28A (Algo) Merchandising: Merchandise purchases budget LO P4 Raider-X Company budgets sales of 20,000 units for April and 22,000 units for May. Beginning inventory on April 1 is 8,000 units, and the company wants to have 40% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $2. Prepare a merchandise purchases budget for the month of April. QS 7-30A (Algo) Merchandising: Computing merchandise purchases LO P4 Montel Company's July sales budget shows sales of $600,000. The company budgets beginning merchandise inventory of $55,000 and ending merchandise inventory of $32,000 for July. Cost of goods sold is 30% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory) to solve for purchases. Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.6 hour of direct labor at the rate of $17 per hour. The company budgets variable overhead at the rate of $21 per direct labor hour and budgets fixed overhead of $8,100 per month. 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Complete this question by entering your answers in the tabs below. Prepare a direct labor budget for April, May, and June. Note: Enter your direct labor hours (hours) per unit in two decimal places. a. Beginning cash balance on March 1, $76,000. b. Cash receipts from sales, $310,000. c. Cash payments for direct materials, $131,000. d. Cash payments for direct labor, $73,000. e. Cash payments for overhead, $43,000. f. Cash payments for sales commissions, $8,000 g. Cash payments for interest, $160 ( 1% of beginning loan balance of $16,000 ) h. Cash repayment of loan, $16,000. Prepare a cash budget for March for Gado Company. QS 7-26A (Algo) Merchandising: Schedule of cash payments LO P4 Garda purchased $510,000 of merchandise in August and budgets merchandise purchases of $630,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September