Question :
142. Norman Company manufactures two models of microcassette recorders, VCH and : 1233866
142. Norman Company manufactures two models of microcassette recorders, VCH and MTV. Based on the following production data for April of the current year, prepare a production budget for April.
VCH
MTV
Estimated inventory (units), April 1
2,600
3,900
Desired inventory (units), April 30
5,200
3,250
Expected sales volume (units):
Eastern zone
10,500
12,960
Midwest zone
17,000
19,800
Western zone
4,500
9,840
143. Brown Inc. production budget for Product X for the year ended December 31 is as follows:
Product X
Sales
640,000
units
Plus desired ending inventory
85,000
Total
725,000
Less estimated beginning inventory, Jan. 1
90,000
Total production
635,000
In Brown’s production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows:
Product X
Material A
.50 pound per unit
Material B
1.00 pound per unit
Material C
1.20 pound per unit
The prices of direct materials are as follows:
Material A
$0.60 per pound
Material B
1.70 per pound
Material C
1.00 per pound
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production).
144. The Dandy Jeans Company produces two different types of jeans. One is called the “Simple Life” and the other is called the “Fancy Life”. The company sales budget estimates that 350,000 of the Simple Life Jeans and 200,000 of the Fancy Life will be sold during 200x. The Production Budget requires 353,500 units of Simple Life jeans and 196,000 Fancy jeans be manufactured The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type. Prepare a Direct Materials Purchases Budget.
145. The treasurer of Unisyms Company has accumulated the following budget information for the first two months of the coming year:
March
April
Sales.
$450,000
$520,000
Manufacturing costs
290,000
350,000
Selling and administrative
expenses
41,400
46,400
Capital additions
250,000
—
The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are expected to be collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are expected to be paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the probable monthly selling and administrative expenses. Insurance is paid in February and a $40,000 installment on income taxes is expected to be paid in April. Of the remainder of the selling and administrative expenses, one-half are expected to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are expected to be paid in March.Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are composed of accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $20,000.Prepare a monthly cash budget for March and April.
146. Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
August
$100,000
September
185,000
October
225,000
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.
