Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follo April 67,000 77,000 Sales Production May 57,000 67,000 June 77,000 67,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 45% are paid in they are incurred and the balance in the following month. Selling and administrative expenses will amount to $60 accounts payable balance on March 31 totals $184,000, which will be paid in April. All units are sold on account for $15 each. Cash collections from sales are budgeted at 50% in the month of sale, following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts re

Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follo April 67,000 77,000 Sales Production May 57,000 67,000 June 77,000 67,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 45% are paid in they are incurred and the balance in the following month. Selling and administrative expenses will amount to $60 accounts payable balance on March 31 totals $184,000, which will be paid in April. All units are sold on account for $15 each. Cash collections from sales are budgeted at 50% in the month of sale, following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts re

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Sales are expected to increase each month by 10%. Prepare a budgeted income statement.
The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
Clay Company has projected sales and production in units for the second quarter of the comingyear as follows:April May JuneSales 50,000 40,000 60,000Production 60,000 50,000 50,000Cash-related production costs are budgeted at $5 per unit produced. Of these production costs,40% are paid in the month in which they are incurred and the balance in the following month.Selling and administrative expenses will amount to $100,000 per month, paid in the monthincurred. The accounts payable balance on March 31 totals $190,000, which will be paid inApril.All units are sold on account (as credit sales) for $14 each. There are no cash sales. Cashcollections from sales are budgeted at 60% in the month of sale, 30% in the month following themonth of sale, and the remaining 10% in the second month following the month of sale.Accounts receivable on April 1 totaled $500,000 and the full amount is expected to be collectedby end of April.Required:a. Prepare a schedule for each month showing budgeted cash…
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 59,000 49,000 69,000 Production 69,000 59,000 59,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $70,000 per month. The accounts payable balance on March 31 totals $192,000, which will be paid in April. All units are sold on account for $13 each. Cash collections from sales are budgeted at 50% in the month of sale, 35% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. Accounts receivable on April 1 totaled $564,000 ($104,000 from February's sales and $460,000 from March’s sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson…
L Incorporated provided the following estimated sales data in the first five months of 2021: Month Estimated Sales (units) January 15,000 February ??? March 16,000 April ??? May 18,000 The desired ending inventory of finished goods is 20% of next month’s expected sales. Budgeted production for the month of February and April are 16,600 and 18,640 respectively. Each unit costs 120 to manufacture and is sold to yield gross profit of 25% based on cost. All sales are made on account. 20% is collected in the month of sale; 30% of the balance is collected in the following month, another 40% is collected two months after the month of sale while the rest are collected three months after the month of sale. Ending finished goods inventory in March shall be valued at
L Incorporated provided the following estimated sales data in the first five months of 2021: Month Estimated Sales (units) January 15,000 February ??? March 16,000 April ??? May 18,000 The desired ending inventory of finished goods is 20% of next month’s expected sales. Budgeted production for the month of February and April are 16,600 and 18,640 respectively. Each unit costs 120 to manufacture and is sold to yield gross profit of 25% based on cost. All sales are made on account. 20% is collected in the month of sale; 30% of the balance is collected in the following month, another 40% is collected two months after the month of sale while the rest are collected three months after the month of sale. What is the budgeted sales (in pesos) for the month of February? a. 2,400,000 b. 2,512,500 c. 2,010,000 d. 2,450,500 e. Answer not among the choices
Coronado Company estimates that unit sales will be 11,800 in quarter 1, 16,520 in quarter 2, 17,700 in quarter 3, and 21,240 in quarter 4. The unit selling price is $70. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2025,
Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400 in quarter 3; and 18600 in quarter 4. management wnta to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022
Ashvin
Cash DisbursementTimber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $64,000 is paid for computer services. Sales revenue is forecast as follows Month Sales Revenue February $220,000 March 260,000 April 270,000 May 310,000 June 290,000 July 330,000 RequiredPrepare a schedule of cash disbursements for April, May, and June.Do not use a negative sign with your answers. Timber Company Schedule of Cash Disbursements April, May, and June April May June Lumbers purchases Answer Answer Answer Wages Answer Answer Answer Operating expenses Answer Answer…