Answered You can hire a professional tutor to get the answer.
1. Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of
1. Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000. Required: 1.1 What are the budgeted sales for July? 1.2 What are the expected cash collections for July? 1.3 What is the accounts receivable balance at the end of July? 1.4 According to the production budget, how many units should be produced in July? 1.5 If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? 1.6 What is the estimated cost of raw materials purchases for July? 1.7 If the cost of raw material purchases in June is $88,880, what are the estimated cash disbursements for raw materials purchases in July?
1.8 What is the estimated accounts payable balance at the end of July? 1.9 What is the estimated raw materials inventory balance at the end of July? 1.10 What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced? 1.11 If the company always uses an estimated predetermined plantwide overhead rate of $10 per direct labor-hour, what is the estimated unit product cost? 1.12 What is the estimated finished goods inventory balance at the end of July? 1.13 What is the estimated cost of goods sold and gross margin for July? 1.14 What is the estimated total selling and administrative expense for July? 1.15 What is the estimated net operating income for July?
2. The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year:
The company expects to start the first quarter with 1,600 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,700 units.
In addition, the beginning raw materials inventory for the first quarter is budgeted to be 3,120 pounds and the beginning accounts payable for the first quarter is budgeted to be $14,820.
Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the
following quarter's production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter. Required: 2.1 Prepare the company's production budget for the upcoming fiscal year. 2.2 Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.
3. You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $40,000. b. Actual sales for October and November and expected sales for December are as follows:
Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible.
c. Purchases of inventory will total $280,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December.
d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation.
e. A new Web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month.
f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed.
Required: 3.1 Prepare a schedule of expected cash collections for December. 3.2 Prepare a schedule of expected cash disbursements for merchandise purchases for December. 3.3 Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month.
