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McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending McKee Bakery is preparing the first quarter budget for its most popular product, Little Debbie Honey Buns. The following information has been assembled. December sales (actual) January budgeted sales February budgeted sales $300,000 $279,000 $204,000 100,000 boxes 93,000 boxes 68,000 boxes $180,000 60,000 boxes March budgeted sales April budgeted sales May budgeted sales $270,000 90,000 boxes $300,000 100,000 boxes McKee Bakery sells directly to grocery stores, and all sales are on account. Past collections have been 30% in the month of sale and 70% in the month following the sale. McKee budgets ending finished good inventory at 20% of the following month's sales. Each box of Little Debbie Honey Buns requires 6 ounces of a secret ingredient. McKee budgets ending direct materials inventory at 10% of the following month's production needs. It costs $0.50 per ounce. All purchases are paid in cash the month of purchase. • Prepare a schedule of expected cash collections for the first quarter. January February March Quarter 1 210000 200000 x .07 210000 8370 195 300 279000 279.00003 204400 X.03 190000x7 180 000 X.03 293 706 Total 61200 256,500 142800 54000 196800 204000 54000 74 7000 Prepare a production budget for the first quarter. Assume the beginning inventory of honey buns in January is 20,000 boxes. January February March Quarter 1 9300 to 800 68000 221000 Budgeted Sales, in units 78600 12000 18000 p Add: Desired Ending Inventory 18000 50000 78000 264600 Total Needs 20000 18200 12000 20000 Less: Beginning Inventory 86000 66900 66000 219000 Required Production, in units. ● Prepare a direct materials budget for the first quarter. Assume the beginning inventory of secret ingredient in January is 59,000 ounces. February March January Quarter 1 GG400 66000 219 600 Required Production, in units Ounces of secret ingredient G needed per box of finished product Ounces of secret ingredient needed to meet production (Production needs) 348,400 Add: Desired secret ingredient ending inventory, in ounces Ounces of secret ingredient needed Less: Beginning Inventory, in ounces Ounces to be purchased Cost of secret ingredient to be purchased 86000 G 519 600 39840 39600 354448 59000 500440 438000 39840 346 160 646 396000 $5200 451206 39600 411660 1314000 55200 59 000 90000 2000 110000 92000 • Prepare a cash budget for just the month of January. A cash balance on January 1 of $25,000. Selling general and Administrative cash disbursements during January of $60,000. A minimum cash balance on January 31 of $20,000. If necessary, the company will borrow cash from a bank. January Cash balance, beginning Cash collections from customers Total cash available Direct Material Purchases Selling. General, & Administrative Expenses Total cash disbursements Excess <deficiency of cash available over disbursements Financing: Borrowings Repayments Interest Total Financing Cash balance, ending
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Cash budget for the month of January Cash balance beginning Cash collection ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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