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Sweet Potato Inc. requires a cash budget for




Question;Question;1;Sweet Potato Inc. requires a cash budget for the month of december 2014. The;following information is available for preparation of the cash budget.;-The cash balance on December 1 is $11,000;-Sales for November and December are $55,000 and $60,000 respectively. Cash;collections on sales are 40% of the month of sale and 60% in the month after;the sale;-General expenses budgeted for December 2014 are $18,000 (depreciation;represents $2000 of this amount);-Inventory purchases will total $30,000 in November and $50,000 in December.;The company pays for 40% of its inventory purchases in the month of purchase;and 60% in the month after purchase;-The company will pay $5000 in cash for desks in December 2014;-Salaries and wages not included in general expenses above are budgeted at;$8,000;-The company plans to issue and pay salary bonuses in December 2014 in the;amount of $6,000;-The company maintains a minimum ending cash balance of $10,000 and can borrow;from the bank in multiples of $100 all loans are repaid after 60 days;Prepare a cash budget for Sweet Potato Inc. for the month of December 2014 and;explain all steps taken in order to solve this question;Question 2;Stuffed Turkey Inc. whose fiscal year begins on November 1 has just completed a;record breaking year producing and selling turkeys. Its inventory account;balances on October 31 of this year were;Materials Inventory: $83,000;Work In Process Inventory: $2,700,000;Finished Goods Inventory: $1,800,200;At the beginning of the year the inventory account balances were;Materials Inventory: $56,200;Work In Process Inventory: $3,300,000;Finished Goods Inventory: $1,596,400;During the fiscal year the companys purchases of direct materials totaled;$750,000 direct labor hours totaled 140,000 and the average labor rate was $11;per hour. The following overage costs were incurred during the year;-Depreciation/plant and equipment $85,600;-Indirect labor $207,300;-Property Tax/ Plant and equipment:$96,000;-Plant maintenance: $8,000;Small Tools: $42,400;Utilities: $96,500;Employee Benefits: $176,100;Prepare a statement of cost of goods manufactured for the year ended October 31;2014 and explain each step and how to prepare


Paper#53080 | Written in 18-Jul-2015

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