Prepare a set of budgets, to include: a sales budget, a production budget, a direct materials budget, a direct labor budget and a cash budget for the next month of May. Unit sales 100,000 units Unit price $15 Beginning raw materials 4000 lbs Beginning inventory in units 8,000 Desired ending inventory in units 12,000 The product requires four pounds of raw material, costing $2.50 per pound. A desired ending raw materials inventory of 6,000 pounds Each product requires 1/2 hour of direct labor at a rate of $9 per hour. Eastvaco experiences the following: expected cash received in current month (May) of $45,000.Eastvaco has some equipment it is no longer using and plans to sell in May for $3,500.During the current month (May) payments for materials is expected to be $10,000, direct labor payroll is expected to be $12,500, and miscellaneous expenditures is expected to total $14,900. Beginning cash balance (May 1st) is $1,230. Expected collections on previous month (April) accounts receivable is $600,000.Expected collections on March sales is $300,000.
Paper#11255 | Written in 18-Jul-2015Price : $25