Manufacturing costs are estimated to be $360,000 and $450,000 for July and August respectively. These amounts include $30,000 of monthly depreciation plant and equipment expense. Cash payments are paid such that 60% are paid in the month incurred and 40% are paid in the following month. What are the budgeted cash payments for August?

Manufacturing costs are estimated to be $360,000 and $450,000 for July and August respectively. These amounts include $30,000 of monthly depreciation plant and equipment expense. Cash payments are paid such that 60% are paid in the month incurred and 40% are paid in the following month. What are the budgeted cash payments for August?

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

Bonita Industries is preparing its direct labor budget for May. Projections for the month are that 31400 units are to be produced and that direct labor time required is three hours per unit. If the labor cost per hour is $15, what is the total budgeted direct labor cost for May? O $1345500. O $2025000. O $1413000. O$1379250.
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $40,660 $7,740 $43.360 $32,920
Victor Inc. has just received its sales and expense report for December, which follows. Item Amount Sales commissions $250,000 Sales staff salaries 100,000 Telephone and mailing 30,000 Building lease payment 60,000 Heat, light, and water 15,000 Packaging and delivery 30,000 Depreciation 25,000 Marketing consultants 10,000 Sales 600,000 You have been asked to develop budgeted costs for the coming year. Since this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: • Sales volume is expected to increase by 20 percent. • Sales prices are expected to decrease by 10 percent. • Commissions are based on a percentage of selling price. • Sales staff salaries will increase 8 percent next year regardless of sales volume. • Building rent is based on a five-year lease that expires in three years. • Telephone and mailing costs are scheduled to decrease by 5 percent even with no change in sales volume.…
Clarks Company's master budget includes $360,000 for equipment depreciation. The master budget was prepared for an annual volume of 120,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September Clark performed 9,000 chargeable hours and recorded $28,000 of depreciation. Determine the flexible budget amount for equipment depreciation in September?
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Budgeted production (in units) Budgeted raw materials purchases (in pounds) Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 80,600 units 80,000 units 103,400 units 74,000 units 4- March January February ? 80,000 151,600 158,800 70,000 142,400
The sales budget of a company for November and December is 46,000 units and 48,000 units, respectively. its production budget for the same two months is 43,000 units and 44,000 units, respectively. Each unit of finished goods requires 4 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following months production needs. Assume the company pays $2.75 per pound of raw material. It alvways pays for 50% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on October 31 is $146,000. What amount would the company show in their November cash budget for cash disbursements for raw material purchases? Multiple Choice $391,600 $382,850 $388,600 $383,600 ( Prev 4 of 23 MacBook Ain
Each unit requires direct labor of 1.5 hours. The labor rate is $11.86 per hour and next year’s direct labor budget totals $795,253. How many units are included in the production budget for next year? Round to the nearest penny, two decimal places.
Osprey Cycles, Inc. projected sales of 64,237 bicycles for the year. The estimated January 1 inventory is 3,510 units, and the desired December 31 inventory is 6,177 units. What is the budgeted production (in units) for the year?______________________
S ABC Company's raw materials purchases for June, July, and August are budgeted at $39,000, $29,000, and $54,000, respectively. Based on past experience, ABC expects that 70% of a month's raw material purchases will be paid in the month of purchase and 30% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments June July August $ 0
Manu has forecast sales to be $32,000 in February, $41,400 in March, $53,200 in April, and $58,600 in May. 64% of sales are on made on credit, the rest are for cash. The sales on credit are collected 30% in the month of sale, and 70% the month following. What are the total budgeted cash receipts in March? What is the accounts receivable balance as of April 30 ? Prepare the cash receipts budget Item Calculation Amount
For Crane Company, units to be produced are 5,300 in quarter 1 and 7,420 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2022. $ $ CRANE COMPANY Direct Labor Budget 1 Quarter $ $ 2 $ Six Months
If it takes two direct labor hours to produce each unit and Alpha CD's cost per labor hour is P15, direct labor cost for August would be budgeted at: