The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other Multiple Choice $ 50,000 $ 60,000 $ 20,000 $ 40,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred If the budgeted cash disbursements for selling and administrative expenses for April total $195,500, then how many Debs does the company plan to sell in April? 14,400 units 8,000 units Monthly Fixed Cost 10,200 units Variable Cost Per Deb Sold $0.90 $ 1.40 $ 0.20

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other Multiple Choice $ 50,000 $ 60,000 $ 20,000 $ 40,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred If the budgeted cash disbursements for selling and administrative expenses for April total $195,500, then how many Debs does the company plan to sell in April? 14,400 units 8,000 units Monthly Fixed Cost 10,200 units Variable Cost Per Deb Sold $0.90 $ 1.40 $ 0.20

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

Phoneix Company... Please refer to the two images below.
Show the solution in good accounting form
Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter. a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating incone "Includes $34,000 of depreciation each month. April $ 740,000 518,000 222,000 92,000 51,000 143,000 $ 79,000 Hay $ 920,000 644,000 276,000 111,000 69,600 180,600 $ 95,400 June $ 620,000 434,000 186,000 73,000 45,200 118,200 $ 67,800 July $530,000 371,000 159,000 53,000 50,000 103,000 $56,000 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with…
required: Use this information to prepare a cash budget for the first two quarters of the year
Wellness Products, needs a cash budget for September. The following information is available: 1. The cash balance at the beginning of August is 9,000€. 2. Contribution margin is 50% (COGS are 50% of sales) 3. Actual sales for July and expected sales for August, September and October are as shown below. Some customers pay in cash (Cash sales) and others in account as described in the figure below. Customers that pay in account, make the payment the month after. 4. Purchases of inventory (company just resells what they buy) must be done so that the end of month inventory must cover 20% of next month sales. Initial inventory in July was 5.300€. 100% of a month's inventory purchases are paid for during the month of purchase. 1. Prepare a schedule of expected cash collections for August, September & October. 2. Prepare a merchandise purchases budget for July, August, and September. 3. Prepare a schedule of expected cash flow (cash in minus cash out) for August, and September. Cash Sales…
Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: Budgeted monthly absorption costing income statements for April–July are: April May June July Sales $ 720,000 $ 890,000 $ 600,000 $ 500,000 Cost of goods sold 504,000 623,000 420,000 350,000 Gross margin 216,000 267,000 180,000 150,000 Selling and administrative expenses: Selling expense 90,000 109,000 71,000 50,000 Administrative expense* 50,000 68,000 44,000 48,000 Total selling and administrative expenses 140,000 177,000 115,000 98,000 Net operating income $ 76,000 $ 90,000 $ 65,000 $ 52,000 *Includes $32,000 of depreciation each month. Sales are 20% for cash…
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) September sales (actual) October sales (estimated) November sales (estimated) December sales (estimated) $ 40,000 $ 50,000 $ 20,000 $ 70,000 $ 60,000 Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. Budgeted collections from customers in October total:
I set my collectiosn of accounts as May-28700+58500,June 31500+66950, July 36050+79300. I must be missing something because it is wrong. Please help me fix the wrong answers. Thank you
The management accountant at Miller Merchandising & More, Odail Russell is in the process ofpreparing the cash budget for the business for the fourth quarter of 2021. It is customary for thebusiness to borrow money during this quarter. Extracts from the sales and purchases budgets areas follows:Month cash sales sales on account purchasesAugust $85,000 $640,000 $420,000September $70,000 $550,000 $550,000October $ 88,550 $600,000 $500,000November $77,160 $800,000 $600,000December $174,870 $500,000 $450,000 Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms –2/30, n60: 60% in the month in which the inventory is purchased40% in the…
SPU, Ltd., has just received its sales expense report for January, which follows. Item Amount Sales commissions $ 430,500 Sales staff salaries 88,400 Telephone and mailing 51,000 Building lease payment 50,000 Utilities 16,100 Packaging and delivery 74,000 Depreciation 38,750 Marketing consultants 61,190 You have been asked to develop budgeted costs for the coming year. Because 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 14 percent. Sales prices are expected to decrease by 10 percent. Commissions are based on a percentage of sales revenue. Sales staff salaries will increase 4 percent next year regardless of sales volume. Building rent is based on a five-year lease that expires in three years. Telephone and mailing expenses are scheduled to increase by 10 percent even with no change in sales volume.…
Gibco Service has budgeted the following time-and-material for 2019: Budgeted Costs For 2019 Time Material Charges Charges Painters' wages and benefits $54,000 Service manager's salary and benefits $44,000 Office employee's salary and benefits 7,400 6,000 Cost of paint 50,000 Overhead (supplies, utilities, etc.) 14,000 22,000 Gibco budgets 2,000 hours of paint time in 2019 and will charge a profit of $8 per hour on the labour rate, in addition to a 12% mark-up on the cost of paint. On February 15, 2019, Gibco is asked to prepare a price estimate to paint a building. Gibco estimates that this job will take 25 labour hours and $900 in paint. 1.Calculate the material loading charge rate % for 2019 2. What is the planned profit for the year? Do not enter $ or commas.
Helen is working on her department's budgeted annual income statement. In the process, she needs to determine the budgeted amount for selling, general, and administrative (SG&A) expenses in order to complete her budget. Sales Variable SG&A cost 11500 units $0.20 per unit Advertising expense $6200 per year Depreciation on office equipment $8600 per year Other fixed SG&A costs $24800 On the basis of the given data, what are total budgeted selling, general, and administrative (SG&A) expenses of the department? ○ $35700 O $33300 O $17100 O $41900