Question 3 Budgeted Cash Disbursements Langor Inc. is preparing its cash budget. The sales budget specifies...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 Budgeted Cash Disbursements Langor Inc. is preparing its cash budget. The sales budget specifies the following budgeted monthly sales, in units: April May June July 12,000 6,600 13,500 12,600 The company's inventory policy is to budget for finished goods inventory equal to 30% of the following month's sales, and to budget for materials inventory equal to 50% of the following month's production requirements. Each unit of finished goods requires four pieces of material at a predicted price of $30 each. Management intends to take advantage of a 3/10, n/30 discount. Required Compute the budgeted cash disbursements during May for payment of accounts payable for material purchases. Assume material purchase are made evenly throughout the month. D Question 3 Budgeted Cash Disbursements Langor Inc. is preparing its cash budget. The sales budget specifies the following budgeted monthly sales, in units: April May June July 12,000 6,600 13,500 12,600 The company's inventory policy is to budget for finished goods inventory equal to 30% of the following month's sales, and to budget for materials inventory equal to 50% of the following month's production requirements. Each unit of finished goods requires four pieces of material at a predicted price of $30 each. Management intends to take advantage of a 3/10, n/30 discount. Required Compute the budgeted cash disbursements during May for payment of accounts payable for material purchases. Assume material purchase are made evenly throughout the month. D
Expert Answer:
Answer rating: 100% (QA)
Firstly we need to calculate the production requirements of month of May Opening Inventory in May Ma... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Posted Date:
Students also viewed these accounting questions
-
Eastern State University (ESU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5...
-
Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 8,000 students are enrolled on campus; however, the admissions office is forecasting a 5...
-
Pargo SpA is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total...
-
How do accounting differences impact the usefulness of financial ratio comparisons?
-
NET how might the following organizations use an Internet chat room for exploratory research? a. A provider of health benefits b. A computer software manufacturer c. A video game manufacturer
-
Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently AlwaysRain has 10 such employees. In...
-
Harley Corporation issued \(\$ 75,000\) of \(6 \%, 10\)-year, nonconvertible bonds with detachable stock purchase warrants. Each \(\$ 1,000\) bond carried 20 detachable warrants, each of which was...
-
Modular houses are Homes, Inc.s specialty. The companys best-selling model is a three-bedroom, 1,400-square-foot house with an impressive front entrance. Last year, the standard costs for the six...
-
Question 6) correlation between markets U.S and Japanese investors. Given the point of view of a U.S. investor and of a U.K. investor? 4. For the following returns: Period United States Japan...
-
. Question 1 (10 points) () Listen You are a member of a five person team consisting of three men and two women. Elizabeth is one of the original members of the team and she has a reputation as a...
-
Internal auditors must have independence: a. To ensure their objectivity. b. To be able to audit any activity in the organization. c. To be sure they will receive replies to their reports. d. To have...
-
Which of the following should be defined in the charter of the internal auditing department? a. Types of departmental activity reports to be prepared and to whom they should be distributed. b....
-
In determining whether to rely on the work ofthe internal auditor, the external auditor is expected to consider which of the following: a. Hiring practices of the internal auditing department. b....
-
Which of the following may compromise the independence of an internal auditor? a. Reviewing EDP systems prior to implementation. b. Performing an audit where the auditor recently had operating...
-
Assuming that an organization is not already using the digital technologies you identified above, how could using them improve the functioning of its information systems? (E.g. how would using them...
-
Define los enfoques filosficos: estructuralismo, funcionalismo y empirismo. identifica los principales postulados y exponentes de cada enfoque filosfico. Explica el desarrollo de los procesos...
-
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
-
Als Auto Wash charges $4 to wash a car. The variable costs of washing a car are 15% of sales. Fixed expenses total $1,700 monthly. How many cars must be washed each month for Al to break even?
-
Kirchner Corporation produces three models of lawnmowers ? Economy, Standard and Fancy. The following data is available for 20X0. Fixed costs for the combined sales are $170.3 million. During the...
-
Winterfell Inc., a manufacturing company, has the following standard costs for one unit of production: The planning budget for the quarter was based on 6,200 units. Actual results for the last...
-
Where might financial statement fraud occur in a company (e.g., what are some red flags)?
-
Is check forgery generally an internal or external fraud? How about credit card fraud?
-
What are major motives of fraud according to COSO?
Study smarter with the SolutionInn App