2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: А. 52,000 рounds В. 192,000 рounds C. 208,000 pounds D. 216,000 pounds

2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: А. 52,000 рounds В. 192,000 рounds C. 208,000 pounds D. 216,000 pounds

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
Each unit requires direct labor of 2.2 hours. The labor rate is $11.50 per hour and next years direct labor budget totals $834.900. How many units are included in the production budget for next year?
Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of 12,000 per year per unit Six welding employees each paid a salary of 50,000 per year (A total of 9,000 welding hours are supplied by the six workers.) Welding supplies: 300 per job Welding hours: Three hours used per job During the year, the activity operated at 90 percent of capacity and incurred the actual activity and resource costs, shown on page 676. Lease cost: 48,000 Salaries: 315,000 Parts and supplies: 805,000 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. 2. Prepare a performance report for the welding activity. 3. What if welders were hired through outsourcing and paid 30 per hour (the welding equipment is provided by Foy)? Repeat Requirement 1 for the outsourcing case.
The Steele Corporation has budgeted production for next year as follows: Production in units Quarter O 63,200 pounds O 62,400 pounds O 56,800 pounds O 50,400 pounds First 10,000 Second 12,000 Third 16,000 Fourth 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:
Prester Corporation has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units......... 60,000 70,000 80,000 90,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand 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 of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
The Tabby Company has budgeted production for next year as follows: First 14,000 10,000 Quarter Sales in Units Production in Units Second 12,000 12,000 Third 14,000 16,000 Fourth 16,000 14,000 Four kilograms of raw materials are required for each unit produced. At the start of the year, raw materials on hand total 5,000 kilograms. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. What would be the budgeted purchases of raw materials in the third quarter? 65,600 kilograms. A) B) 56,800 kilograms. 62,400 kilograms. 63,200 kilograms. D)
2. Al Nebras Company has budgeted production for next year as follows: 1" Year QI Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds В. 192,000 рounds C. 208,000 pounds D. 216,000 pounds
Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units... 60,000 80,000 90,000 70,000 ........ Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand 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 of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: A. 82,500 pounds B. 200,000 pounds C. 205,000 pounds D. 165,000 pounds
Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
The total budgeted sales of Obaapa Ltd for April, the first month of the second quarter in 2021 were GHS950,000. Sales are expected to increase by GHS50,000 in each month. Cash sales for each month are GHS100,000 and the remaining are credit sales. All the products are sold at a mark up of the cost plus 25 per cent. On average, Obaapa Ltd collects 50 per cent of the credit sales in the month of sale and 45 per cent in the month following sales. The remainder is uncollectible. Determine the budgeted total cash receipt for each month of the second quarter of 2021 and the expected account receivables at the end of the quarter.
The Brotherhood Company has produced the following information from which a cash budget for the first six months of the year is required The company makes a single product which sells for K 50,000 and the variable cost of each unit is as follows: Material K26,000 Labour (wages) K 8,000 Variable overhead K 2, 000 Fixed overheads (excluding depreciation) are budgeted at K5, 500, 000 per month payable on the 23rd of each month. Notes sales Units for the last two months of the year November December 1000 1200 Budgeted Sales Units for next year January February March April May June 1400 1600…