Question

i Reference (Click to ash budget in add Pet Transport ble, then total dist to the nearest whole doll Units Selling price Total Revenues Cat-allac 530 $ 205 $ 108,650 Dog-eriffic 265 310 82.150 Total 190,800 Manufacturing Overhead Budget For the Month of April Machine setup costs 8,715 Processing costs 103,000 Inspection costs 465 112,180 Total Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total 550 1.650 S Cat-allac 10. S. 16.500 190800 171720 15264 186984 put fields and the Print Done Clear A

Answer 1

The cash budget starts with the opening balance add all the receipts and deduct all the payments.

Sales are 10% cash and 90% on credit card. For credit card sales, 2% fees are deducted and cash is receives immediately.

Purchases are half paid in the current month and half in next month. In the month of April, balance payable to supplies at the end of March and half of the purchases of April month will be paid.

Let us see the cash budget as below:

5,100 19,080 168,286 192,466 19,105 Cash Budget April 30 Cash balance, beginning Add: receipts Cash sales (190,800*10%) Credit sales (190,800*90%)-2% Total cash available for needs Less: Payments Payment to suppliers 8,500+(21,210*50%) Purchase of machine Labor cost Manufacturing cost (excl. depreciation) (112,180-22,000) Nonmanufacturing cost (excl. depreciation) (35,508-13,000) Interest payment (2,900*24%/12) Income tax payment Total payments Balance available for payment of loan Less: Repayment of loan Closing balance 13,100 29,000 90,180 22,508 58 5,800 179,751 12,715 2,900 9,815 Since the cash is more than $10,000 at the end of April, loan is repaid