Beard Company has $13,600 in cash on hand on January 1 and has collected the following budget data: Beard Company January February Sales $530,400 $563,500 Cash receipts from customers $443,200 $496,900 Cash payments for direct materials $175,262 $161,859 Direct labor costs $137,830 $112,431 Manufacturing overhead costs $55,937 $53,439 (including depreciation of $2,300 per month)       Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Beard Company has cash payments for selling and administrative expenses including salaries of $45,000 per month plus commissions that are 2% of sales, all paid the month of the sale. The company requires a minimum cash balance of $10,000. 1. Prepare a cash budget for January and February. Round to the nearest dollar. Beard CompanyCash BudgetFor the Two Months Ended February 28   January February Total Beginning cash balance       Cash receipts       Cash available       Cash payments:       Purchases of direct materials       Direct labor       Manufacturing overhead       Selling and administrative expenses       Total cash payments       Ending cash balance before financing       Minimum cash balance desired       Projected cash excess (deficiency)       Financing:       Borrowing       Principal repayments       Total effects of financing       Ending cash balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Beard Company has $13,600 in cash on hand on January 1 and has collected the following budget data:

Beard Company January February
Sales $530,400 $563,500
Cash receipts from customers $443,200 $496,900
Cash payments for direct materials $175,262 $161,859
Direct labor costs $137,830 $112,431
Manufacturing overhead costs $55,937 $53,439
(including depreciation of $2,300 per month)    

 

Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Beard Company has cash payments for selling and administrative expenses including salaries of $45,000 per month plus commissions that are 2% of sales, all paid the month of the sale. The company requires a minimum cash balance of $10,000.

1. Prepare a cash budget for January and February. Round to the nearest dollar.

Beard CompanyCash BudgetFor the Two Months Ended February 28
  January February Total
Beginning cash balance      
Cash receipts      
Cash available      
Cash payments:      
Purchases of direct materials      
Direct labor      
Manufacturing overhead      
Selling and administrative expenses      
Total cash payments      
Ending cash balance before financing      
Minimum cash balance desired      
Projected cash excess (deficiency)      
Financing:      
Borrowing      
Principal repayments      
Total effects of financing      
Ending cash balance      
 
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