Budget Electronics is planning to sell 2,200 and produce 2,000 wicker baskets during June. Each unit requires 120 linear feet of wicker and 0.70 hours of direct labor. Wicker costs $0.35 per linear foot and employees of the company are paid $13.00 per hour. Manufacturing overhead is applied at a rate of 140% of direct labor costs. The company wants to have 10% of the wicker needed for the next month’s production available at the end of each month. The expected production in July is 1,800 baskets. What is the total amount that will be budgeted for direct labor for June?

1. Budget Electronics is planning to sell 2,200 and produce 2,000 wicker baskets during June. Each unit requires 120 linear feet of wicker and 0.70 hours of direct labor. Wicker costs $0.35 per linear foot and employees of the company are paid $13.00 per hour. Manufacturing overhead is applied at a rate of 140% of direct labor costs. The company wants to have 10% of the wicker needed for the next month’s production available at the end of each month. The expected production in July is 1,800 baskets. What is the total amount that will be budgeted for direct labor for June?
2. 1. Walker Entertainment is a distributor of video games and expects its video game sales to be as follows for the first 4 months of 2014:

   January                     $100,000

   February                   $150,000

   March                       $180,000

   April                         $200,000

   Walker’s cost of goods sold is 70% of sales. Ending inventory is expected to equal 40% of the next month's cost of goods sold. How much are budgeted inventory purchases for February?

3. 1. Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors’ invoiced $200,000 to clients. Projected revenues for the first six months of 2014 are given below:

                                     Month                      Revenue

   January                     $180,000

   February                     215,000

   March                         220,000

   April                           218,000

   May                            240,000

   June                            255,000

   What are the expected cash receipts for April, 2014?

4. 1. Market Leasing budgeted credit sales in the first quarter of 2014 to be as follows:

   January                     $210,000

   February                     190,000

   March                         170,000

   The budgeted beginning cash balance at February 1 is expected to be $14,000 and budgeted monthly cash disbursements are expected to be $198,000. Credit sales in December, 2013 are expected to be $204,000. The company expects to collect 20% of a month’s sales in the month of sale and 80% in the following month. How much is the budgeted cash balance at the end of February?

    

5. In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is

6.

1. Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

7.

1. Stut Corporation, a retailer, plans to sell 28,000 units of Product X during the month of August. If the company has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month?

8.

1. Green Company’s sales are 20% cash and 80% credit. Of the credit sales, 60% are collected in the month of sale and 30% in the month following the sale. The balance is collected during the following month. Budgeted sales data is as follows:

June                          $300,000

July                          $250,000

August                      $280,000

September                $310,000

How much is total Accounts Receivable at the end of August?

9.

1. Wisdom Toys has budgeted sales and production over the next quarter as follows:

                                                                             Unit Sales     Production

September                    43,000             44,400

October                        50,000             52,800

November                    64,000             61,200

The company requires that 20% of the next month’s sales in units are on hand at the end of each month. December sales are expected to be 50,000 units. How many video games are in inventory at October 31?

10.

1. SalaRita’s sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows:

June                          $200,000

July                            120,000

August                        150,000

How much is total cash collected during August?