Compute the required answer

Reference no: EM13784938

Compute the required answer for each of the following independent situations.

a. For next year, Penny Suits projects $8,000,000 of sales and total fixed manufacturing costs of $2,000,000. Variable manufacturing costs are estimated at 65 percent of sales. Assuming no change in inventory, what is the company's projected cost of goods sold?

b. Tommy's Company has projected the following information for October:

Sales .....................................................................$800,000

Gross profit (based on sales) .......................................... 25%

Increase in Merchandise Inventory in October ..................... $20,000

Decrease in Accounts Payable for October ......................... $45,000

What are expected cash disbursements for inventory purchases for October?

a. Buda Corp. is attempting to budget its overhead costs for March 2011. Overhead is a mixed cost with the following flexible budget formula: y = $250,000 + $17.50X, where X represents machine hours. Fixed overhead includes $95,000 of depreciation. If Buda Corp. expects to utilize 7,500 machine hours in March, what is the company's budgeted March overhead cost? How much cash will the company pay for budgeted overhead in March?

b. Elizabeth Enterprises expects to begin 2011 with a cash balance of $15,000. Cash collections from sales and on account during the year are expected to be $470,500. The firm wants to maintain a minimum cash balance of $5,000. Budgeted cash disbursements for the year are as follows:

Payoff of note payable .........................................................$52,500

Interest on note payable ......................................................... 4,700

Purchase of computer system ................................................... 17,900

Payments for operating costs and inventory purchases .....................193,500

Direct labor payments ..........................................................110,000

Cash overhead payments .......................................................106,400

Cash selling and administrative payments .................................... 94,800

The company can, if necessary, borrow in $1,000 amounts. Prepare a cash budget for 2011.

Reference no: EM13784938

Questions Cloud

Capacity and demand decision affect corporate performance : In what ways does the management of capacity and demand decision affect corporate performance? Use examples to discuss your argument.

Prepare a purchases budget for the first quarter : Prepare a purchases budget for the first quarter of 2011 in units, in total, and in dollars. Determine the budgeted payments for purchases of raw materials for each of the first three months of operations and for the quarter in total.

Explain the relationship between quality and productivity : Explain the relationship between quality and productivity under the lean philosophy and discuss why lean hard to implement in practice? How is choice between a level strategy and chase strategy influenced by the skill level of workforce and the degre..

Factors that have driven growth in real gdp : Identify and analyze the factors that have driven growth in real GDP - Identify any recent events or changes that have caused an increase in GDP but not a correlating increase in our nation's standard of living.

Compute the required answer : Compute the required answer for each of the following independent situations.

Short notes on consumer surplus : Consumer Surplus.

What is a regression analysis : What is a regression analysis? In which research situation is it useful? What does a correlation coefficient tell? What is a factor analysis? In which situation is it useful? Identify and appraise factors in making design decision in details.?

Impact of autism on a child development : What is the impact of autism on a child's development? Discuss what the most effective treatment(s) for this issue might be.

The company''s business culture issues : Examine an instance where you had to make an intuitive decision that required quick thinking on your part.

User Account

All Pages