Reference no: EM132940307
Questions -
Q1. Oliver Company provided the following information for the coming year
Units produced and sold 160,000
Cost of goods sold per unit $6.30
Selling price @10.80
Variable selling and administrative exp. per unit $1.10
Fixed selling & administrative exp. (total) $423,000
Tax rate 35%
How much is budgeted net income after tax?
Q2. Kaila and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing and 25% will be paid in the second month following billing. For the next 5 months, the following sales billing are expected:
May $84,000
June 100,800
July 77,000
August 86,800
September 91,000
How much is total cash collections in September?
How much is total cash collections in August?
Q3. Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is:
January 24,700
February 22,000
March 30,200
Each box of chocolate mix takes 0.4 direct labor hour. The average wage is $17 per hour. How much is total direct labor cost for the quarter?
Q4. Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is:
January 24,700
February 22,000
March 30,200
Each box requires 4.2 pounds of chocolate mix and one box. Company policy requires that ending inventories of raw materials for each month be 10% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of 1 pound of chocolate mix is $1.50. The cost of one box is $0.10.
Calculate the ending inventory of boxes for January.
Calculate the ending inventory of boxes for February.
Calculate the ending inventory of boxes for December of the prior year.
Calculate the ending inventory of chocolate mix in pounds for January.
Calculate the ending inventory of chocolate mix in pounds for February.
Calculate the ending inventory of chocolate mix in pounds for December of the prior year.