Question

May 735 pple Company provides the following data for the next three months. Feb 780 Jan 685 Budgeted production units Beginning Raw Materials inventory-Ibs. Ending Finished Goods Inventory - units 705 160 Apple had decided that Raw Materials desired ending inventory shou month's production needs. Each unit of production takes four pounds w Materials desired ending inventory should be 40% of the next Each unit of production takes four pounds of raw materials. What is the quantity (lbs.) of Raw Materials to be purchased in February w Materials to be purchased in February? DEVE omobil isubizon nebog 2. Birch Corporation has budgeted production units of 45,800 for June and 36,520 for July The direct labor requirement per unit is one-fourth hour and the labor rate is $18.50 per hour. What is the budgeted number of hours and cost of direct labor for July? 2009 22951 lenobbA znolihanM EL baristanowili zl2 - noiz ish935 1 USA to isa annuos a 3. Candle Company anticipates total sales for January $400,000, for February $350,000, and for March $550,000. Cash sales are normally 40 % of total sales. Of the credit sales, 30% are collected in the same month as the sale, 67% are collected during the first month after the sale, and the remaining 3% are not collected. What is the amount of cash received from Sales in March?

Answer 1

D Estimated production Feb (780 x 4) Add: Ending inventory (735 x 4 x 40%) Less: Beginning inventory (780 x 4 x 40%) Raw material to be purchased Ibs. 3,120 1,176 (1,248) 3,048 Budgeted number of hours (36,520 =4) Cost of direct labor (9,130 x $18.50) 9,130 $168,905

Sales Cash Sales Credit sales 30% same month receipt Credit sales 67% same month receipt Total cash collection in the month G H I Jan Feb Mar $400,000 $350,000 $550,000 $160,000 $140,000 $220,000 $72,000 $63,000 $99,000 $160,800 $140,700 $232,000 $363,800 $459,700

Jan Sales 400000 Cash Sales =G2*0.4 Credit sales 30% same month receipt =(G2-G3)*0.3 Credit sales 67% same month receipt Total cash collection in the month =SUM(G3:55) Feb 350000 =H2*0.4 = (H2-H3)*0.3 =(G2-G3) *0.67 =SUM(H3:15) Mar 550000 =12*0.4 =(12-13) *0.3 = (H2-H3) *0.67 =SUM(13:15)