Question

The direct materials budget shows: Units to be produced; 3,000 units Total pounds needed for production; 6,000 pounds Total materials required; 6,600 What are the direct materials per unit? (Hint: Don't make this hard!)

       1.08 pounds.
       2.0 pounds.
       2.2 pounds
       Cannot be determined from the data given.

The following information was taken from Sloan Company's cash budget for the month of July:
Beginning Cash Balance; $90,000
Cash Receipts; $57,000
Cash Disbursements; $102,000

If the company has a policy of maintaining a minimum end of the month cash balance of $75,000, the amount the company would have to borrow is

$30,000.
       $15,000.
       $45,000.
       $18,000

The following credit sales are budgeted by Roswell Company:
January; $34,000
February; $50,000
March; $70,000
April; $60,000

The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale; and 8% in the second month following the sale. The anticipated cash inflow for the month of April is

$61,720.
       $56,000.
       $60,000.
       $58,800.

The direct materials budget shows: Desired ending direct materials; 12,000 pounds Total materials required; 18,000 pounds Direct materials purchases; 15,800 pounds The total direct materials needed for production is

       6,000 pounds.
       2,200 pounds.
       3,800 pounds.
       33,800 pounds.

Answer 1

Solution:

1.) 2 pounds.

Direct materials per unit in pounds = Total pounds needed / Units to be produced.

Direct materials per unit in pounds = 6,000/3,000 = 2pounds.

2.) $30,000.

Borrowings = Cash required at the end of the month - Cash at the beginning - Cash receipts + Cash disbursements.

Borrowings = $75,000 - $90,000 - $57,000 + $102,000 = $30,000.

3.) $60,000.

Anticipated Cashflow in April = 8% of February Sales + 20% of March Sales + 70% of April Sales.

Anticipated Cashflow in April

= [(8%) * ($50,000)] + [(20%) * ($70,000)] + [(70%) * ($60,000)]

= $4,000 + $14,000 + $42,000

= $60,000.