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Danner Company

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Danner Company expects to have a cash balance of $59,110 on January 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows.;Collections from customers: January $109,225, February $192,750.;Payments for direct materials: January $64,250, February $89,950.;Direct labor: January $38,550, February $57,825. Wages are paid in the month they are incurred.;Manufacturing overhead: January $26,985, February $32,125. These costs include depreciation of $1,285 per month. All other overhead costs are paid as incurred.;Selling and administrative expenses: January $19,275, February $25,700. These costs are exclusive of depreciation. They are paid as incurred.;Sales of marketable securities in January are expected to realize $12,850 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,125. The company wants to maintain a minimum monthly cash balance of $25,700.;Prepare a cash budget for January and February.;DANNER COMPANY;Cash Budget;For the Two Months Ending February 28, 2014;---------------------------------------------------------------------------------------------------------------------------------;#2;Duncan Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2014, the following data are available.;1. Sales: 20,800 units quarter 1, 22,700 units quarter 2.;2. Variable costs per dollar of sales: Sales commissions 5%, delivery expense 2%, and advertising 4%.;3. Fixed costs per quarter: Sales salaries $10,200, office salaries $6,480, depreciation $4,750, insurance $2,080, utilities $810, and repairs expense $610.;4. Unit selling price: $22.;Prepare a selling and administrative expense budget by quarters for the first 6 months of 2014. (List variable expenses before fixed expense.);DUNCAN COMPANY;Selling and Administrative Expense Budget;For the Six Months Ending June 30, 2014;Quarter;1;2;Six Months

 

Paper#79645 | Written in 18-Jul-2015

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