Question

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be

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18.     A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:

Wages Expense                                      $150,000

Purchase of office equipment                      72,000

Selling and Administrative Expenses          48,000

Depreciation Expense                                 36,000

The budgeted cash disbursements for August are

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19.     Astor Manufacturing has the following budgeted sales: January $120,000, February $180,000, and March $150,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:

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            20.       Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be?

Answer 1

Ans-

Sales department budget for june	300000
Less-Opening balance as on 1st june	-80000
Add-Closing balance as on 30th june	120000
No of unit manufatured	340000
Cost per unit	$30
Bugeted cost of manufactured	$10,200,000

18.

Budgeted cash disbursement for aug
Raw material payment made of aug (480000*70%)		$336,000
Raw material payment made of July (300000*30%)		$90,000
Wage expense		$150,000
Purchase of office equipment		$72,000
Selling & administrative exp		$48,000
Total cash budget of aug		$696,000

19.

Total cash receipt of March
Cash sale of march (150000*40%)	$60,000
Credit sale of march (150000*60%*50%)	$45,000
Credit sale of Feb(180000*60%*50%)	$54,000
Total	$159,000

20.

Cash disbursement for aug
Purchase of aug (210000*3/4)	$157,500
Purchase of July (180000*1/4)	$45,000
Total	$202,500