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##### accounting problems with A+ answers

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Question;Problem 5-1:Your Company, Inc. has determined that its planned production for the upcoming fiscalyear is:Units to be produced,First Quarter = 6,000Second Quarter = 7,000Third Quarter = 5,000Fourth Quarter = 4,000Beginning raw materials inventory for the first quarter is 2,400 pounds. Beginningaccounts payable for the first quarter is \$2,520. Each unit requires 4 pounds of rawmaterial that costs \$0.70 per pound. Management desires to end each quarter with aninventory equal to 10% of the following quarters production needs. The desired endinginventory for the fourth is 2,600 pounds. Management plans to pay 80% of the rawmaterial purchases in the quarter acquired and 20% in the following quarter. Each unitrequires 0.70 direct labor hours and the labor rate is \$16.00 per hour.Required:1] Prepare the companys direct materials budget and schedule of expected cashdisbursements for purchases of raw materials for the upcoming fiscal year.2] Prepare the companys direct labor budget for the upcoming fiscal year, assumingthat the direct labor workforce is adjusted each quarter to match the number of hoursrequired to produce the forecasted number of units produced.Problem 5-2:My Company, Inc. has determined that its planned production for the upcoming fiscalyear is:Units to be produced:First Quarter = 6,000Second Quarter = 7,000Third Quarter = 6,500Fourth Quarter = 5,500Each unit requires 1.4 direct labor hours and workers are paid \$12.50 per hour. Thevariable manufacturing overhead rate is \$0.75 per direct labor hour. The fixedmanufacturing overhead is \$90,000 per quarter. The only non-cash element ofmanufacturing overhead is depreciation, which is \$20,000 per quarter. All labor costsand manufacturing overhead is paid in the quarter incurred.Required:1] Prepare the companys direct labor budget for the upcoming fiscal year, assumingthat the direct labor work force is adjusted each quarter to match the number of hoursrequired to produce the forecasted number of units produced.2] Prepare the companys manufacturing overhead budget.Problem 5-3:You will be required to prepare a December cash budget. You are provided with thefollowing information:a] Cash balance on December 1 is \$60,000.b] Actual sales for October and November and expected sales for December are asfollows:OctoberNovember DecemberCash sales\$95,000\$105,000\$125,000Sales on account\$600,000\$785,000\$900,000Sales on account are collected over a three month period as follows:Month of sale:15%Month following sale:60%Second month following sale:20%Five percent of sales on account are uncollectible.c] Purchases of inventory for December will total \$420,000. Forty percent of a monthsinventory purchases are paid in the month of purchase. The accounts payableremaining from November inventory purchases total \$205,000, all of which will be paidin December.d] Selling and administrative expenses are budgeted at \$440,000 for December, ofthis amount \$50,000 is for depreciation.e] A new machine will be purchased for cash, in December, at a cost of \$205,000,dividends totaling \$25,000 will be paid in December.f] The company maintains a minimum cash balance of \$60,000. An open line of creditis available from the companys bank to bolster the cash position as needed.Required:1] Prepare a schedule of cash collections for December.2] Prepare a schedule of cash disbursements for merchandise purchases forDecember.3] Prepare a cash budget for December. Indicate in the financing section anyborrowing that will be needed during the month. Assume that no interest payments aredue or will be paid before January.

Paper#38839 | Written in 18-Jul-2015

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