Chapter 9 Problems

4/17/2018 Chapter 9 Problems
Managerial Accounting Theory &

Practice: Spring 2018-
Chapter 9 Problems instructions | help
[The following information applies to the questions displayed below.]

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,600, 27,000, 29,000, and 30,000 units, respectively. All
sales are on credit.
b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
c. The ending finished goods inventory equals 30% of the following month’s unit sales.
d. The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw
materials. The raw materials cost $2.50 per pound.
e. Twenty five percent of raw materials purchases are paid for in the month of purchase and 75% in the following month.
f. The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $66,000.

1. value:
1.00 points
Required information
Required:
1. What are the budgeted sales for July?
Budgeted sales
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Worksheet Learning Objective: 09-03 Prepare Learning Objective: 09-07 Prepare a selling and administrative
a production budget. expense budget.
Difficulty: 2 Medium Learning Objective: 09-04 Prepare Learning Objective: 09-09 Prepare a budgeted income statement.
a direct materials budget,
including a schedule of expected
cash disbursements for purchases
of materials.
Learning Objective: 09-02 Learning Objective: 09-05 Prepare Learning Objective: 09-10 Prepare a budgeted balance sheet.
Prepare a sales budget, a direct labor budget.
including a schedule of
expected cash
collections.
Check my work

2. value:
1.00 points
2. What are the expected cash collections for July?
Total cash collections
of materials.
expected cash
collections.
Check my work

3. value:
1.00 points
3. What is the accounts receivable balance at the end of July?
Accounts receivable
of materials.
expected cash
collections.
Check my work

4. value:
1.00 points
4. According to the production budget, how many units should be produced in July?
Required production units
of materials.
expected cash
collections.
Check my work

5. value:
1.00 points
5. If 117,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
Raw materials to be purchased pounds
of materials.
expected cash
collections.
Check my work

6. value:
1.00 points
6. What is the estimated cost of raw materials purchases for July?
Cost of raw materials to be purchased
of materials.
expected cash
collections.
Check my work

7. value:
1.00 points
7. If the cost of raw material purchases in June is $173,760, what are the estimated cash disbursements for raw materials purchases in July?
Total cash disbursements
of materials.
expected cash
collections.
Check my work

8. value:
1.00 points
8. What is the estimated accounts payable balance at the end of July?
Accounts payable
of materials.
expected cash
collections.
Check my work

9. value:
1.00 points
9. What is the estimated raw materials inventory balance at the end of July?
Raw material inventory balance
of materials.
expected cash
collections.
Check my work

10. value:
1.00 points
10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted
number of units produced?
Total direct labor cost
of materials.
expected cash
collections.
Check my work

11. value:
1.00 points
11. If the company always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-hour, what is the estimated unit product cost? (Round
your answer to 2 decimal places.)
Unit product cost
of materials.
expected cash
collections.
Check my work

12. value:
1.00 points
12. What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of
$9 per direct labor-hour?
Ending finished goods inventory
of materials.
expected cash
collections.
Check my work

13. value:
1.00 points
13. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $9 per
direct labor-hour?
Estimated cost of goods sold

Estimated gross margin
rev: 11_04_2016_QC_CS-68653
of materials.
expected cash
collections.
Check my work

14. value:
1.00 points
14. What is the estimated total selling and administrative expense for July?
Total selling and administrative expenses
of materials.
expected cash
collections.
Check my work

15. value:
1.00 points
15. What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-
hour?
Net operating income
of materials.
expected cash
collections.
Check my work
©2018 McGraw-Hill Education. All rights reserved.


16. value:
1.00 points
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget
for the second quarter given below:
April May June Total

Budgeted sales (all on account) $440,000 $640,000 $220,000 $1,300,000
From past experience, the company has learned that 30% of a month’s sales are collected in the month of sale, another 60% are collected in the month following
sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $370,000, and
March sales totaled $400,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
Schedule of Expected Cash Collections

April May June Total
February sales
March sales
April sales
May sales
June sales
2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
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May sales
June sales
Total accounts receivable at June 30
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17. value:
1.00 points
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Sales in Units
April 60,000
May 80,000
June 100,000
July 85,000
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must
equal 20% of the following month’s sales. The inventory at the end of March was 12,000 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.
Down Under Products, Ltd.,

Production Budget
April May June Quarter
Budgeted unit sales
Total needs
Required production in units

Hint #1
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18. value:
1.00 points
Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil
is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
Year 2 Year 3
First Second Third Fourth First
Budgeted production, in bottles 86,000 116,000 176,000 126,000 96,000
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this
reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 34,400 grams of musk oil will be
on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)
Mink Caress
Direct Materials Budget - Year 2
Quarter
First Second Third Fourth Year
Required production in units of finished goods
Units of raw materials needed per unit of finished goods
Units of raw materials needed to meet production
Total units of raw materials needed
Units of raw materials to be purchased

Unit cost of raw materials
Cost of raw materials to purchased
Hint #1
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19. value:
1.00 points
The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Units to be produced 8,600 6,500 7,300 8,200
Each unit requires 0.75 direct labor-hours, and direct laborers are paid $12 per hour.
Required:
1. Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the
number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.)
Rordan Corporation
Direct Labor Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Direct labor time per unit (hours)
Total direct labor-hours needed
Direct labor cost per hour
2. Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead,
assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 6,000 hours of work each quarter.
If the number of required direct labor-hours is less than this number, the workers are paid for 6,000 hours anyway. Any hours worked in excess of 6,000 hours in a
quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.)
Rordan Corporation
Direct Labor Budget
Regular hours paid
Overtime hours paid
Wages for regular hours
Overtime wages
rev: 11_03_2017_QC_CS-107926
Hint #1
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20. value:
1.00 points
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

Budgeted direct labor-hours 10,600 9,500 9,800 10,600
The company’s variable manufacturing overhead rate is $5.25 per direct labor-hour and the company’s fixed manufacturing overhead is $74,000 per quarter. The
only noncash item included in fixed manufacturing overhead is depreciation, which is $18,500 per quarter.
Required:
1. Complete the company’s manufacturing overhead budget for the upcoming fiscal year.
Yuvwell Corporation
Manufacturing Overhead Budget
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less depreciation
Cash disbursements for manufacturing
overhead
2. Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your
final answers to 2 decimal places.)
Total budgeted manufacturing overhead for the

year
Budgeted direct labor-hours for the year
Predetermined overhead rate for the year
Hint #1
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21. value:
1.00 points
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:
Budgeted unit sales 24,000 25,000 21,000 22,000
The company’s variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000
per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 per quarter. In addition, the company will make insurance payments of $4,000
in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.
Required:
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Round "Variable cost"
answers to 2 decimal places.)
Weller Company
Selling and Administrative Expense Budget
Fixed selling and administrative expenses:
Total fixed selling and administrative expenses

Total selling and administrative expenses
Cash disbursements for selling and administrative expenses
Hint #1
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22. value:
1.00 points
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:

Total cash receipts $280,000 $400,000 $330,000 $350,000
Total cash disbursements $344,000 $314,000 $304,000 $324,000
The company’s beginning cash balance for the upcoming fiscal year will be $45,000. The company requires a minimum cash balance of $10,000 and may borrow
any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its
loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is
not compounded.
Required:
Complete the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.)
Garden Depot
Cash Budget
Beginning cash balance
Total cash receipts
Total cash available
Less total cash disbursements
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Ending cash balance
Hint #1
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23. value:
1.00 points
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its
annual budgeting process:
Budgeted unit sales 860

Selling price per unit $ 2,150
Cost per unit $ 1,625
Variable selling and administrative expenses (per unit) $ 95
Fixed selling and administrative expenses (per year) $335,000
Interest expense for the year $ 31,000
Required:
Prepare the company’s budgeted income statement using an absorption income statement format shown below.
Gig Harbor Boating

Budgeted Income Statement
Hint #1
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24. value:
1.00 points
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance
sheet for next year:
Ending
Balances
Cash ?
Accounts receivable $ 8,400
Supplies inventory $ 4,500
Equipment $ 35,500
Accumulated depreciation $ 14,400
Accounts payable $ 2,100
Common stock $ 5,000
Retained earnings ?
The beginning balance of retained earnings was $31,000, net income is budgeted to be $15,100, and dividends are budgeted to be $5,000.
Required:
Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Hint #1
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25. value:
1.00 points
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are
required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the
quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month’s sales. The finished
goods inventory on June 30 is budgeted to be 14,800 units.
b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw
materials inventory on June 30 is budgeted to be 78,000 cc of solvent H300.
c. The company maintains no work in process inventories.
A sales budget for Supermix for the last six months of the year follows.
Budgeted Sales
in Units
July 59,000
August 64,000
September 74,000
October 54,000
November 44,000
December 34,000
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
Pearl Products Limited

Production Budget
July August September October
Budgeted unit sales
Total needs
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
Pearl Products Limited

Direct Materials Budget
July August September Third Quarter
Worksheet Learning Objective: 09-03 Prepare

a production budget.
Difficulty: 1 Easy Learning Objective: 09-04 Prepare

of materials.
Check my work


26. value:
1.00 points
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $4,000 to start each
quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus
sign.)
Quarter (000 omitted)

1 2 3 4 Year
Cash balance, beginning $ 8
Add collections from customers 102 357
Total cash available 83
Less disbursements:
Purchase of inventory 41 51 33
Selling and administrative expenses 32 30 112
Equipment purchases 13 8 16 47
Dividends 2 2 2 2
Total disbursements 93
Excess (deficiency) of cash available over disbursements (3) 10
Financing:
Borrowings 11
Repayments (including interest) * (13)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
Worksheet Difficulty: 1 Easy Learning Objective: 09-08 Prepare a cash budget.
Check my work

[The following information applies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June
30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 83,000
Accounts receivable 126,000
Inventory 69,750
Plant and equipment, net of depreciation 220,000
Total assets $ 498,750
Liabilities and Stockholders’ Equity
Accounts payable $ 81,000
Common stock 348,000
Retained earnings 69,750
Total liabilities and stockholders’ equity $ 498,750

27. value:
1.00 points
Beech’s managers have made the following additional assumptions and estimates:
1. Estimated sales for July, August, September, and October will be $310,000, $330,000, $320,000, and $340,000, respectively.
2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the
sale. All of the accounts receivable at June 30 will be collected in July.
3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its
merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be
paid in July.
4. Monthly selling and administrative expenses are always $58,000. Each month $6,000 of this total amount is depreciation expense and the remaining $52,000
relates to expenses that are paid in the month they are incurred.
5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any
common stock or repurchase its own stock during the quarter ended September 30.
Required:
1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

Month
July August September Quarter
From accounts receivable
From July sales
From August sales
From September sales
2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
Merchandise Purchases Budget

July August September Total
Budgeted cost of goods sold
Total needs
Required purchases
2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for
merchandise purchases for the quarter ended September 30.
Schedule of Cash Disbursements for Purchases

From accounts payable
From July purchases
From August purchases
From September purchases
3. Prepare an income statement for the quarter ended September 30.
Beech Corporation
Income Statement
For the Quarter Ended September 30
4. Prepare a balance sheet as of September 30.
Beech Corporation
Balance Sheet
September 30
Assets
Total assets
Liabilities and Stockholders' Equity
Total liabilities and stockholders' equity
Worksheet Learning Objective: 09-02 Prepare Learning Objective: 09-09 Prepare a budgeted income statement.
a sales budget, including a
schedule of expected cash
collections.
Difficulty: 1 Easy Learning Objective: 09-04 Prepare Learning Objective: 09-10 Prepare a budgeted balance sheet.
of materials.
Check my work

28. value:
1.00 points
Beech’s managers have made the following additional assumptions and estimates:
1. Estimated sales for July, August, September, and October will be $310,000, $330,000, $320,000, and $340,000, respectively.
2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the
sale. All of the accounts receivable at June 30 will be collected in July.
3. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 30% of its
merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be
paid in July.
4. Monthly selling and administrative expenses are always $58,000. Each month $6,000 of this total amount is depreciation expense and the remaining $52,000
relates to expenses that are paid in the month they are incurred.
5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any
common stock or repurchase its own stock during the quarter ended September 30.
Required:
1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

Month
July August September Quarter
From accounts receivable
From July sales
From August sales
From September sales
2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
Merchandise Purchases Budget

Budgeted cost of goods sold
Total needs
Required purchases
2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for
merchandise purchases for the quarter ended September 30.
Schedule of Cash Disbursements for Purchases

From accounts payable
From July purchases
From August purchases
From September purchases
3. Prepare an income statement for the quarter ended September 30.
Beech Corporation
Income Statement
For the Quarter Ended September 30
4. Prepare a balance sheet as of September 30.
Beech Corporation
Balance Sheet
September 30
Assets
Total assets
Liabilities and Stockholders' Equity
Total liabilities and stockholders' equity
Worksheet Learning Objective: 09-02 Prepare Learning Objective: 09-09 Prepare a budgeted income statement.
collections.
Difficulty: 1 Easy Learning Objective: 09-04 Prepare Learning Objective: 09-10 Prepare a budgeted balance sheet.
of materials.
Check my work


29. value:
1.00 points
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

Budgeted unit sales 11,300 12,300 14,300 13,300
The selling price of the company’s product is $12 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the
following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the
first quarter, is $70,800.
The company expects to start the first quarter with 1,695 units in finished goods inventory. Management desires an ending finished goods inventory in each
quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,895 units.
Required:
1-a. Compute the company’s total sales.
Jessi Corporation
Sales Budget
Budgeted units sales
Selling price per unit
Total sales
1-b. Complete the schedule of expected cash collections.
Jessi Corporation
Beginning accounts receivable
1st Quarter sales
2nd Quarter sales
3rd Quarter sales
4th Quarter sales
2. Prepare the company’s production budget for the upcoming fiscal year.
Jessi Corporation
Production Budget
Budgeted unit sales
Total needs

collections.

a production budget.
Check my work


30. value:
1.00 points
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour.
In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $89,000 per quarter. The only noncash
element of manufacturing overhead is depreciation, which is $29,000 per quarter.
Required:
1. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number
of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers
to 2 decimal places.)
Hruska Corporation
Direct Labor Budget
Direct labor time per unit (hours)
2. Prepare the company’s manufacturing overhead budget.
Hruska Corporation
Manufacturing Overhead Budget
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less depreciation
Cash disbursements for manufacturing
overhead

a direct labor budget.

a manufacturing overhead budget.
Check my work


31. value:
1.00 points
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

In addition, 30,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,800.
Each unit requires 8 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of
the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material
purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $11.50 per hour.
Required:
1-a. Prepare the company’s direct materials budget for the upcoming fiscal year. (Round "Unit cost of raw materials" answers to 2 decimal places.)
Zan Corporation
Direct Materials Budget
1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Year
Required production in units of finished goods
Units of raw materials needed per unit of finished goods

Unit cost of raw materials
Cost of raw materials to be purchased
1-b. Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.
Zan Corporation
Schedule of Expected Cash Disbursements for Materials
1st 2nd 3rd 4th
Beginning accounts payable
1st Quarter purchases
2nd Quarter purchases
3rd Quarter purchases
4th Quarter purchases
Total cash disbursements for materials
2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number
of hours required to produce the forecasted number of units produced. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2
decimal places.)
Zan Corporation
Direct Labor Budget
1st 2nd 3rd 4th
Direct labor-hours per unit

of materials.

a direct labor budget.
Check my work

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Chapter 9 Problems

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4/17/2018 Chapter 9 Problems

Managerial Accounting Theory &

[The following information applies to the questions displayed below.]

References eBook & Resources

2. What are the expected cash collections for July?

Total cash collections

References eBook & Resources

3. What is the accounts receivable balance at the end of July?

References eBook & Resources

Required production units

References eBook & Resources

Raw materials to be purchased pounds

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6. What is the estimated cost of raw materials purchases for July?

Cost of raw materials to be purchased

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Total cash disbursements

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8. What is the estimated accounts payable balance at the end of July?

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Raw material inventory balance

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Total direct labor cost

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Unit product cost

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Ending finished goods inventory

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Estimated cost of goods sold

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Total selling and administrative expenses

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Net operating income

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Managerial Accounting Theory &

April May June Total

Schedule of Expected Cash Collections

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Managerial Accounting Theory &

Down Under Products, Ltd.,

Required production in units

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Managerial Accounting Theory &

Total units of raw materials needed

Units of raw materials to be purchased

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Managerial Accounting Theory &

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

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Managerial Accounting Theory &

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Total budgeted manufacturing overhead for the

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Managerial Accounting Theory &

Fixed selling and administrative expenses:

Total fixed selling and administrative expenses

Cash disbursements for selling and administrative expenses

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