Bramble Company expects to have a cash balance of $43,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $81,600, February $144,000. Payments for direct materials: January $48,000, February $72,000. Direct labor: January $28,800, February $43,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $20,160, February $24,000. These costs include depreciation of $1,440 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $14,400, February $19,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11.520 in cash. Bramble Company has a line of credit at a local bank that enables it to borrow up to $24,000. The company wants to maintain a minimum monthly cash balance of $19,20m Prepare a cash budget for January and February

Bramble Company expects to have a cash balance of $43,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $81,600, February $144,000. Payments for direct materials: January $48,000, February $72,000. Direct labor: January $28,800, February $43,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $20,160, February $24,000. These costs include depreciation of $1,440 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $14,400, February $19,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11.520 in cash. Bramble Company has a line of credit at a local bank that enables it to borrow up to $24,000. The company wants to maintain a minimum monthly cash balance of $19,20m Prepare a cash budget for January and February

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Yogi has $14,000 in cash on hand on January 1 and has collected the following budget data: Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yogi has cash payments for selling and administrative expenses including salaries of $50,000 per month plus commissions that are 2% of sales, all paid in the month of sale. The company requires a minimum cash balance of $12,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yogi need to borrow cash by the end of February?
The production budget for Manner Company shows units to be produced as follows: July, 620; August, 680; and September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $20 per hour but is predicted to be $21 per hour in September. Prepare a direct labor budget for the months July, August, and September.
Crane Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Units to be produced (by quarters): 10,600, 12,720, 14,840, 16,960. Direct labor: Time is 1.50 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.8; indirect labor $1.2; and maintenance $0.5. Fixed overhead costs per quarter: supervisory salaries $43,725; depreciation $15,900; and maintenance $12,720. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.) CRANE COMPANY Manufacturing Overhead Budget
Negros Co.'s factory overhead rate is pre-determined at the start of the fiscal period based on expected actual production capacity. Budgeted factory overhead is Ph175,000 for a normal capacity of 50,000 units and Ph225,000 for a maximum capacity of 75,000 units. At the beginning of 2020, the company forecasted a production of 60,000 units. For 2020, the factory overhead rate per unit would be * Ph 2.75 Ph 3.00 Ph 3.25 Ph 3.50
Please complete the instructional questions (a) and (b) so I can check my work. Thank you. -Mitch
China Company expects to have a cash balance of $40,000 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $90,000, February $200,000. Payments for direct materials: January $60,000, February $95,000. Direct labor: January $30,000, February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,000, February $41,000. These costs include depre- ciation of $1,000 per month. All other overhead costs are paid as incured. Selling and administrative expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $10,000 in cash. China Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $25,000. Instructions Prepare a cash budget for January and February.
A manufacturing company budgets production of 800 units during June and 900 units during July. Each unit of finished goods requires 2 pounds of direct materials, at a cost of $8 per pound. The company maintains an inventory of direct materials equal to 10% of next month’s budgeted production. Beginning direct materials inventory for June is 160 pounds. Each finished unit requires 1 hour of direct labor at the rate of $14 per hour. Compute the budgeted (a) cost of direct materials purchases for June and (b) direct labor cost for June.
10. ASD expects to have a cash balance of OMR 45,000 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: January (OMR) February (OMR) Collections from Customer 100,000 160,000 Payments for direct materials Direct labor (wages are paid in the same month they are incurred) Manufacturing overhead (These costs include depreciation of OMR 1,000 per month) Selling and administrative expenses 60,000 80,000 30,000 45,000 26,000 31,000 15,000 20,000 Sales of marketable securities in January are expected to realize OMR 10,000 in cash. ASD has a line of credit at a local bank that enables it to borrow up to OMR 25,000. The Company wants to maintain a minimum monthly cash balance of OMR 25,000. Instructions: Prepare a cash budget for January and February. (
Yordi Company expects to produce 1,710 units in January and 1,836 units in February. Yordi budgets three direct labor hours per unit. Direct labor costs average $18 per hour. Prepare Yordi's direct labor budget for January and February. Begin by preparing the direct labor budget for January and February through the total direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost. Yordi Company Direct Labor Budget Two Months Ended January 31 and February 28 January February Direct labor hours needed for production
Echo Amplifiers prepared the following sales budget for the first quarter of 2018: Jan. Feb. Mar. Units 900 1,300 1,400 Sales price $100 $100 $100 Budgeted sales $90,000 $130,000 $140,000 It also has this additional information related to its expenses: Direct material per unit $1.50 Direct labor per unit 2 Variable manufacturing overhead per hour 0.40 Fixed manufacturing overhead per month 3,000 Sales commissions per unit 16 Sales salaries per month 5,100 Delivery expense per unit 0.50 Factory utilities per month 4,000 Administrative salaries per month 20,000 Marketing expenses per month 7,000 Insurance expense per month 12,000 Depreciation expense per month 10,000 Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all amounts as positive numbers.
Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.04 direct labor-hours. The direct labor rate is $9.10 per direct labor-hour. The production budget calls for producing 4,500 units In February and 5,000 units In March. Required: Prepare the direct labor budget for February and March, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round "labor-hours per unit" & "labor cost per hour" answers to 2 decimal places.) 12 Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost February March
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $ 13,120 $ 15,230 $ 12,050 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,800. The budgeted cash payments for materials in January are: