1.
Introduction: Disbursements refer to the payment of money from the dedicated fund. The payments for the purchase of any kind of raw material in any previous accounting period and current budget period are the disbursements for raw material.
The reason why the total cash disbursements for raw materials increased when the budgeted unit sales changed to 75000 units and the total expected cash collections for the year becomes $2,085,000, required production becomes 274000 units, the cost of raw materials to be purchased is now $1,106,800, and the total cash disbursements for the year will be $1,095,980.
2.
Introduction: Purchase of raw materials considers all goods or equipment necessary to produce final goods and services.
(a) The total expected cash collections for the year under the revised budget, (b) the total required production for the year, (c) the total cost of raw materials to be purchased for the year, (d) the total expected cash payments for raw materials for the year, and (e) if there is a potential problem when the production manager cautioned that the plant cannot produce more than 90,000 units due to limited availability of milling machine then what needs to be done in this situation.
Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
- 1. Define working capital and explain its importance in financial health and liquidity management. 2. Assess how the matching concept and accrual basis affect the reporting of current assets and liabilities. 3. Using a hypothetical balance sheet (you may create one), identify at least 5 current assets and 5 current liabilities and analyze how changes in these elements affect liquidity ratios. 4. Recommend at least two strategies VinGrenDom Ltd. can implement to optimize working capital.arrow_forwardNonearrow_forwardNo Ai Answerarrow_forward
- I need the correct answer to this financial accounting problem using the standard accounting approach.arrow_forwardTheron Interiors manufactures handcrafted cabinetry and uses a process costing system. During the month of October, the company started Production on 720 units and completed 590 units. The remaining 120 units were 60% complete in terms of materials and 40% complete in terms of labor and overhead. The total cost incurred during the month was $45,000 for materials and $31,200 for labor and overhead. Using the weighted-average method, what is the equivalent unit cost for materials and conversion costs (labor and overhead)?arrow_forwardGeneral Accountingarrow_forward
- Kamala Khan has to decide between the following two options: Take out a student loan of $70,000 and study accounting full time for the next three years. The interest on the loan is 4% per year payable annually. The principle is to be paid in full after ten years. Study part time and work part time to earn $15,000 per year for the following six years. Once Kamala graduates, she estimates that she will earn $30,000 for the first three years and $40,000 the next four years. Kamala's banker says the market interest for a ten-year horizon is 6%. Required Calculate NPV of the ten-year cash flows of the two options. For simplification assume that all cash flows happen at year-end. Based on the NPV which of the two options is better for Kamala?arrow_forwardFinancial Accountingarrow_forwardPlease give me answer with general accountingarrow_forward
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning