Production cash outflow. California Cement Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 23% of the anticipated month's sale. Beginning inventory in September 2014 was 33,323 units. Each unit costs $2.73. The average sales price per unit is $5.71. The cost is made up of 35% labor, 56% materials, and 9% shipping (to the warehouse). The company pays for labor the month of production, shipping the month afterproduction, and raw materials the month prior to production. What is the production cash outflow for products produced in the month of September 2014, and in what months does it occur? Note: September production is based on November anticipated sales. The following are the fourth-quarter sales for 2014: $1,791,000 (October), $1,545,000 (November), and $2,093,000 (December).
What is the production cash outflow for the month of September 2014 production?
The labor cost is?
(Round to the nearest dollar.)
The raw materials cost is?
(Round to the nearest dollar.)
The shipping cost is?
(Round to the nearest dollar.)
In what months does the production cash outflow for the month of September 2014 production occur?
The production cash outflow for the month of September 2014 production is as follows: (Select the best response. Due to rounding, numbers below might differ from your original answers a few dollar units)
A.August for raw materials, $457,857; September for shipping, $73,584; October for labor, $286,161.
B.August for raw materials, $457,857; September for labor, $286,161; October for shipping, $73,584.
C.August labor, $286,161; September for raw materials, $457,857; October for shipping, $73,584.
D.August for shipping, $73,584; September raw materials, $457,857; October for labor, $286,161
Production cash outflow. California Cement Company produces its products two months in advance of...
Production cash outflow. California Cement Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 20% of the anticipated month's sale. Beginning inventory in September 2014 was 33,275 units. Each unit costs $2.88. The average sales price per unit is $5.83. The cost is made up of 25% labor, 65% materials and 10% shipping (to the warehouse). The company pays for labor the month of...
12.5 Production cash outflow. National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 7% of the anticipated month's sale. Beginning inventory in October 2014 was 263,956 units. Each unit costs $0.24 to make. The average selling price is $0.68 per unit. The cost is made up of 37% labor, 48% materials, and 15% shipping (to the warehouse). The company pays for labor...
Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month Sales September 2.400 October 1,900 November 1,200 December 900 Support At the beginning of September, 600 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales. Each...
CASH BUDGETING Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017: May 2016 $186,000 June 186,000 July 372,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale,...
Sales receipts. California Cement Company anticipates the following fourth-quarter sales for 2009: $1,800,000 (October), $1,600,000 (November), and $2.100.000 (December). It posted the following sales figures for the third quarter of 2009: $1,900.000 (July). $2,050,000 (August), and $2,200,000 (September). CCC sells 90% of its products on credit: 10% are cash sales. The credit sales are collected as follows: 60% in the following month, 20% two months later, 19% three months later, and 1% defaults. What are the anticipated cash inflows for...
Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $175,000 and accounts payable of $99,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $150,000 July $ 90,000 June 160,000 August 80,000 September 100,000 October 120,000 All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected...
Exercise 8-10 Production and Direct Materials Budgets [LO8-3, LO8-4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (CC) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished...
Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter...
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $117,000 November 146,000 December 214,000...
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $107,000 November 134,000 December 196,000...