Johnson Company expects to have a cash balance of $51,300 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows:
Collections from customers: January $96,900, February $171,000
Payments for direct materials: January $57,000, February $85,500
Direct Labor: January $34,200, February $51,300. Wages are paid in the month they are incurred.
Manufacturing overhead: January $23,940, February $28,500. These costs include depreciation of $1,710 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $17,100, February $22, 800. These costs are exclusive of depreciation. That are paid as incurred.
Sales of marketable securities in January are expected to realize to $13,680 in cash. Johnson Company has a line of credit at a local bank that enables it to borrow up to $28,500. The company wants to maintain a minimum monthly cash balance of $22,800.
-Prepare a cash budget for January and February
January February
_____________________________________________________________________________________________________________________________________
Beginning cash balance
Add: Receipts
Collections from customers
Sale of marketable securities
Total receipts
Total available cash
Less: Disbursements
Direct materials
Direct labor
Manufacturing overhead
Selling and administrative expenses
Total disbursements
Excess (Deficiency) of available cash over cash disbursements
Financing
Add: Borrowings
Less: Repayments
Ending cash balance
Cash budget | ||
January | February | |
Beginning cash balance | $51300 | $31350 |
Add: Receipts | ||
Collections from customers | 96900 | 171000 |
Sale of marketable securities | 13680 | 0 |
Total receipts | $110580 | $171000 |
Total available cash | $161880 | $202350 |
Less: Disbursements | ||
Direct materials | 57000 | 85500 |
Direct labor | 34200 | 51300 |
Manufacturing overhead | 22230 | 26790 |
Selling and administrative expenses | 17100 | 22800 |
Total disbursements | $130530 | $186390 |
Excess (Deficiency) of available cash over cash disbursements | $31350 | $15,960 |
Financing | ||
Add: Borrowings | 0 | 6840 |
Less: Repayments | 0 | |
Ending cash balance | $31350 | $22800 |
Johnson Company expects to have a cash balance of $51,300 on January 1, 2020. Relevant monthly...
Flounder Company expects to have a cash balance of $52,470 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $99,110, February $174,900. Payments for direct materials: January $58,300, February $87,450. Direct labor: January $34,980, February $52,470. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,486, February $29,150. These costs include depreciation of $1,749 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $52,965 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $100,045, February $176,550. Payments for direct materials: January $58,850, February $88,275. Direct labor: January $35,310, February $52,965. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,717, February $29,425. These costs include depreciation of $1,765 per month. All other overhead costs are paid as incurred....
Sarasota Company expects to have a cash balance of $59,985 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $113,305, February $199,950. Payments for direct materials: January $66,650, February $99,975 Direct labor: January $39,990, February $59,985. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,993, February $33,325. These costs include depreciation of $1,999 per month. All other overhead costs are paid as incurred...
Indigo Company expects to have a cash balance of $45,810 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $86,530, February $152,700. Payments for direct materials: January $50,900, February $76,350 Direct labor: January $30,540, February $45,810. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,378, February $25,450. These costs include depreciation of $1,527 per month. All other overhead costs are paid as incurred...
Danner Company expects to have a cash balance of $58,050 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $109,650, February $193,500. Payments for direct materials: January $64,500, February $96,750. Direct labor: January $38,700, February $58,050. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,090, February $32,250. These costs include depreciation of $1,935 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $46,350 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $87,550, February $154,500. Payments for direct materials: January $51,500, February $77,250. Direct labor: January $30,900, February $46,350. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,630, February $25,750. These costs include depreciation of $1,545 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $54,450 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $102,850, February $181,500. Payments for direct materials: January $60,500, February $90,750. Direct labor: January $36,300, February $54,450. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,410, February $30,250. These costs include depreciation of $1,815 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $49,950 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $94,350, February $166,500 Payments for direct materials: January $55,500, February $83,250. Direct labor: January $33,300, February $49,950. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,310, February $27,750. These costs include depreciation of $1,665 per month. All other overhead costs are pa as incurred....
Danner Company expects to have a cash balance of $54,000 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $102,000, February $180,000. Payments for direct materials: January $60,000, February $90,000. Direct labor: January $36,000, February $54,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,200, February $30,000. These costs include depreciation of $1,800 per month. All other overhead costs are paid as incurred....
3. Martin Company expects to have a cash balance of $136,500 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: • Collections from customers: January $243,200, February $430,900. • Payments for direct materials: January $154,400, February $236,400 • Direct labor: January $89,700, February $136,000. Wages are paid in the month they are incurred. • Manufacturing overhead: January $62,400, February $74,900. These costs include depreciation of $5,000 per month. All other overhead...