Details of this Paper

Managerial Accounting 102 Test 3

Description

solution


Question

Question;The manufacturing overhead budget of Lewison Corporation is based on budgeted direct labor-hours. The June direct labor budget indicates that 5,800 direct labor-hours will be required in that month. The variable overhead rate is $7.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $111,360 per month, which includes depreciation of $17,400. All other fixed manufacturing overhead costs represent current cash flows.Required:a. Determine the cash disbursement for manufacturing overhead for June. Show your work!b. Determine the predetermined overhead rate for June. Show your work1.Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year.On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid twomonths after the month of the sale. Assuming there are no bad debts, what is the expected cash inflow in March? (5 points)2.The following data have been taken from the budget reports of Brandon company, a merchandising company.Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchasesfor the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which thesales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.)Interest payments of $20,000 are paid quarterly in January and April. What are Brandons cash disbursements for the month ofApril? (5 points)3.Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month.The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000finished units in inventory on June 30. What are Berol Companys production requirements in units of finished product for the threemonth period ending September 30? (5 points)4.Prestwich Company has budgeted production for next year as follows:Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A onhand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds ofmaterial A are on hand to start the year. What are the Budgeted purchases of material A for the second quarter? (5 points)5.Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 directlabor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and6,900 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workerscurrently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in totaleach month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the twomonths? (5 points)6.The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct laborbudget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All otherfixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate everymonth. What is the predetermined overhead rate for August? (5 points)7.The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has aunit variable cost of $18. The company has budgeted the following data for November:Sales of $1,152,200, all in cash.A cash balance on November 1 of $48,000.Cash disbursements (other than interest) during November of $1,160,000.A minimum cash balance on November 30 of $60,000.If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% permonth. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.What is the amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desiredNovember 30 cash balance?8.Mitchell Company had the following budgeted sales for the last half of last year:The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, thefollowing information has been assembled: (10 points)Collections on credit sales:60% in month of sale30% in month following sale10% in second month following salea.b.Assume that the accounts receivable balance on July 1 was $75,000. Of this amount, $60,000 representeduncollected June sales and $15,000 represented uncollected May sales. Given these data, what is the total cashcollected during July?What is the budgeted accounts receivable balance on December 1?9.Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variablemanufacturing overhead rate is $6.80 per direct labor-hour, the budgeted fixed manufacturing overhead is $72,000 per month, ofwhich $20,000 is factory depreciation. (10 points)a.If the budgeted direct labor time for October is 5,000 hours, then what is the total budgeted manufacturing overheadfor October?b.If the budgeted direct labor time for November is 5,000 hours, then what are the total budgeted cash disbursementsfor November?c.If the budgeted direct labor time for December is 4,000 hours, then what is the predetermined manufacturingoverhead per direct labor-hour for December?10.The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information(10 points)Sales at $500,000, all for cash.Merchandise Inventory on November 30 was $250,000.The cash balance at December 1 was $20,000.Selling and administrative expenses are budgeted at $50,000 for December and are paid for in cash.Budgeted depreciation for December is $30,000.The planned merchandise inventory on December 31 is $260,000.The cost of goods sold represents 75% of the selling price.All purchases are paid for in cash.a.What are the budgeted cash receipts for December?b.What are the budgeted cash disbursements for December?c.What is the budgeted net income for December?11. Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales inunits for the next three months have been forecasted as follows: (15 points)Units are sold for $12 each. One fourth of all sales are paid for in the month of sale and the balance are paid for in the followingmonth. Accounts receivable at September 30 totaled $450,000. Merchandise is purchased for $7 per unit. Half of the purchases arepaid for in the month of the purchase and the remainder are paid for in the month following purchase. Selling and administrativeexpenses are expected to total $120,000 each month. One half of these expenses will be paid in the month in which they are incurredand the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $290,000.Cash at September 30 totaled $80,000. A payment of $300,000 for purchase of equipment is scheduled for November, and a dividendof $200,000 is to be paid in December.Required:a. Prepare a schedule of expected cash collections for each of the months of October, November, and December.b. Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses foreach of the months October, November, and December.c. Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cashbalance.12.Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: (10 points)Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January.Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.The cost of goods sold is 75% of sales.The company desires an ending merchandise inventory equal to 40% of the following month's cost of goods sold. Payment formerchandise is made in the month following the purchase.The November beginning balance in the accounts receivable account is $70,000.The November beginning balance in the accounts payable account is $257,000.Required:a. Prepare a Schedule of Expected Cash Collections for November and December.b. Prepare a Merchandise Purchases Budget for November and December.13.The manufacturing overhead budget of Lewison Corporation is based on budgeted direct labor-hours. The June direct laborbudget indicates that 5,800 direct labor-hours will be required in that month. The variable overhead rate is $7.70 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $111,360 per month, which includes depreciation of $17,400. All otherfixed manufacturing overhead costs represent current cash flows.Required:a. Determine the cash disbursement for manufacturing overhead for June. Show your work!b. Determine the predetermined overhead rate for June. Show your work!

 

Paper#38859 | Written in 18-Jul-2015

Price : $29
SiteLock