Prepare schedule of cash collections for each month

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Reference no: EM131621330

Answer all Questions.

Question 1 -

Skylight Company is a manufacturer of computers. The company has enough orders for the monthly production of 1,000 computers. The company management provide you with the monthly manufacturing information data as follows:

Plant manger's salary                                           $8,000

Factory building maintenance cost                          $3,000

Advertising for computers                                      $16,000

Sales commissions                                                $10,000

Rent on factory building                                         $12,000

Insurance on factory building                                 $6,000

Depreciation on factory building                              $1,400

Raw materials                                                       $40,000

Factory utilities                                                      $1,600

Supplies for Administrative office                            $400

Wages for factory workers                                     $108,000

Depreciation on office equipment                            $1,000

Miscellaneous factory materials (thread, glue, etc.,) $4,000

Instruction:

Identify cost items and compute the following costs:

a. Product Costs

b. Period cost

Question 2 -

Jay Williams Company, a manufacturer of soccer ball provide you with the following data for the month of January, 2016:

Raw materials purchased                                       $96,400

Repairs on factory building                                     $1,400

Property taxes paid on factory                                $9,600

Factory manager's salary                                       $29,000

Office utilities expense                                           $8,650

Factory utilities                                                      $27,600

Depreciation on factory machinery                          $16,000

Factory insurance                                                  $4,600

Indirect labor                                                        $24,460

Direct labor                                                          $149,250

Sales                                                                   $554,000

Sales discounts                                                     $4,200

Cash                                                                    $32,000

Accounts receivable                                               $27,000

Work in process- Inventory       1/1/2016                $19,800

Work in process- Inventory       1/31/2016              $18,600

Finished goods- Inventory           1/1/2016              $96,000

Finished goods- Inventory           1/31/2016            $95,900

Raw materials- Inventory             1/1/2016            $39,600

Raw materials- Inventory             1/31/2016          $48,000                

Instruction:

a. Prepare the schedule Cost of Goods Manufactured

b. Compute the gross profit only (Hint: "Must compute cost of goods sold" to start with)

c. Prepare the "current asset" section of the balance sheet as at 1/31/2016                                                         

Question 3 -

Sunshine computers has the following information available for December 2016:

Unit selling price of laptop           $400

Unit variable costs                      $270

Total fixed costs                         $104,000

Units sold                                   1,240

Instructions:

a. Prepare  a Cost Volume Profit (CVP) schedule that shows the Net income.

b. Compute Sunshine break-even point sales units.

c. Compute Sunshine break-even sales dollar.

Question 4 -

The management of Hardwood Flooring has collected some data showing the monthly expense to better understand its maintenance cost behavior.

Month                   Equipment hours               Total Cost

January                  600                                 $4,800

February                800                                  $6,000

March                    1,200                               $7,200

April                      1,580                               $9,000

May                       1,000                               $6,400

June                      1,600                               $9,800

Instructions:

a. Using the high-low method, determine the variable cost per unit.

b. Using the high-low method, determine the fixed cost per unit.

Question 5 -

Solar Energy Company manufactures solar panel for energy efficient homes. The company wanted to maintain inventory at 30% of the following month's expected sales unit. At the beginning of the year the company had 20,000 units on hand, based on the following projected sales for each quarter:

First Quarter                        50,000

Second Quarter                    62,500

Third Quarter                       45,000

Fourth Quarter                     55,000

Instructions: Prepare a schedule of production budget for first quarter through third quarter.

Question 6 -

Energy electrical Company anticipate that its 2016 budgeted sales as follows:

January                               $200,000

February                             $220,000

March                                  $270,000

Sales are 40% cash and 60% credit (accounts receivable). The company expect 10% cash collection in the month of sale, 50% in the month following sale, and 36% in the second month following sale and 4% are uncollectible.

Instruction:

a. Prepare schedule of cash collections for each month

b. What is the total cash collected for all three months?

Reference no: EM131621330

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