Swifty Company expects to have a cash balance of $36,900 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $69,700, February $123,000. Payments for direct materials: January $41,000, February $61,500. Direct labor: January $24,600, February $36,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $17,220, February $20,500. These costs include depreciation of $1,230 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $12,300, February $16,400. These costs are exclusive of depreciation. They are paid as Incurred. Sales of marketable securities in January are expected to realize $9,840 in cash. Swifty Company has a line of credit at a local bank that enables it to borrow up to $20.500. The company wants to maintain a minimum monthly cash balance of $16,400 Prepare a cash budget for January and February SWIFTY COMPANY Cash Budget

Swifty Company expects to have a cash balance of $36,900 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $69,700, February $123,000. Payments for direct materials: January $41,000, February $61,500. Direct labor: January $24,600, February $36,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $17,220, February $20,500. These costs include depreciation of $1,230 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $12,300, February $16,400. These costs are exclusive of depreciation. They are paid as Incurred. Sales of marketable securities in January are expected to realize $9,840 in cash. Swifty Company has a line of credit at a local bank that enables it to borrow up to $20.500. The company wants to maintain a minimum monthly cash balance of $16,400 Prepare a cash budget for January and February SWIFTY COMPANY Cash Budget

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

Lily Company expects to have a cash balance of $49,500 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $93,500, February $165,000. Payments for direct materials: January $55,000, February $82,500. Direct labor: January $33,000, February $49,500. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,100, February $27,500. These costs include depreciation of $1,650 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16,500, February $22,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,200 in cash. Lily Company has a line of credit at a local bank that enables it to borrow up to $27,500. The company wants to maintain a minimum monthly cash balance of $22,000. Prepare a cash budget for January and February. LILY COMPANY Cash Budget…
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 3,234,000 1,001,000 246,400 46,200 295,000 198,000 231,000 251,000 610,700 193,000 $ 161,700
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $1.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,370 per month, which includes depreciation of $8.980. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Cholce $9.390 $104.880 $13,860 $13,490
Crane Company expects to have a cash balance of $36,000 on January 1,2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $68,000, February $120,000.Payments for direct materials: January $40,000, February $60,000.Direct labor: January $24,000, February $36,000. Wages are paid in the month they are incurred.Manufacturing overhead: January $16,800, February $20,000. These costs include depreciation of $1,200 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $12,000, February $16,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,600 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $20,000. The company wants to maintain a minimum monthly cash balance of $16,000. Prepare a cash budget for January and February. ReceiptsCollections from…
Yeaman has $13,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling and administrative expenses including salaries of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.) Data table Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes…
Crane Company expects to have a cash balance of $60,350 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $85,350, February $160,350. 2. Payments to suppliers: January $54,350, February $89,350. 3. Wages: January $30,490, February $40,490. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,490, February $24,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,490, February $20,490. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,490 in cash. Crane 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 $34,350. Prepare a cash budget for January and February.
Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 847 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 706 760 738 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases July 718 ZIRA COMPANY Direct Materials Budget April $ $ 706 4 2,824 2,824 ↑ 5 $ 0 $ May 760 4 3,040 Saved 3,040 June 5 $ 0 $ 738 units 4 pounds 2,952 pounds 2,952 pounds 5 per pound 0…
Wala Incorporated bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $30,360 per month, which includes depreciation of $3,630. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 3,100 units are planned to be sold in July. Required: Prepare the selling and administrative expense budget for July.
Ramos Company provides the following budgeted production for the next four months. Units to produce April 620 May June July 750 720 720 Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June. Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases RAMOS COMPANY Direct Materials Budget April May June 620 750 720 units 0
Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs, Beginning direct materials inventory for April was 634 pounds. Direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April May 675 June July Units to produce 634 667 647 ZIRA COMPANY Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
Parlex Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2019, the following data are available. . Sales: 20,000 units quarter 1; 22,000 units quarter 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 4%. Fixed costs per quarter: sales salaries $10,000, office salaries $8,000, depreciation $4,200, insurance $1,500, utilities $800, and repairs expense $500. Unit selling price: $20. Instructions: Prepare a selling and administrative expense budget by quarters for the first 6 months of 2019.