IGUANA, INC. General information: Selling price of picture frames Linear feet of bamboo required per frame...
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IGUANA, INC. General information: Selling price of picture frames Linear feet of bamboo required per frame Cost of bamboo per foot Hours required to build Average hourly labor rate $ 25.00 4 2.00 0.50 $ 12.00 Additional information: Ending finished goods inventory should be 40 percent of the next month's sales Ending raw materials inventory should be 30 percent of the next month's production 0.30 Variable manufacturing overhead rate per unit produced $ Estimated annual fixed manufacturing overhead Expected units of production Estimated monthly selling and administrative expenses Fixed Per unit sold $ 7,200 4,000 650 0.60 Expected number of frames sold in following months: March 275 April May 250 300 June 400 July August 375 425 Information for Problem PA08-03: Cash on hand at April 1 Percentage of sales in cash Percentage of credit sales collected during month of sale Percentage of credit sales collected in month following sale Percentage of direct material purchases paid in month purchased Percentage of direct material purchases paid in following month March 1 raw materials purchases Depreciation included in monthly fixed manufacturing overhead Amount expected to be paid for a piece of equipment Minimum cash balance required 10,800 80% 50% 50% 80% 20% $ 2,000 $ 150 $ 3,000 $ 10,000 1,000 Borrowing increments Requirement 1: Budget cash receipts April May June 2nd Quarter Budgeted sales revenue $ Cash collections $ Credit collections (current month) Credit collections (following month) Budgeted cash receipts $ $ $ $ Try again! Try again! Try again! Try again! Requirement 2: Budget cash disbursements April May June 2nd Quarter Budgeted raw materials purchases $ Cash disbursements Raw material purchases (current month) Raw material purchases (prior month) Direct labor Manufacturing overhead Less: Depreciation Selling and administrative expenses Purchase of equipment Total budgeted cash payments Try again! Try again! Try again! Try again! Requirement 3: Cash budget for Quarter 2 April May June 2nd Quarter Beginning cash balance Plus: Budget cash receipts Less: Budgeted cash payments Preliminary cash balance Cash borrowed/Repaid Ending cash balance $ $ $ %24 %24 %24 %24 %24 %24 %24 %24 %24 IGUANA, INC. General information: Selling price of picture frames Linear feet of bamboo required per frame Cost of bamboo per foot Hours required to build Average hourly labor rate $ 25.00 4 2.00 0.50 $ 12.00 Additional information: Ending finished goods inventory should be 40 percent of the next month's sales Ending raw materials inventory should be 30 percent of the next month's production 0.30 Variable manufacturing overhead rate per unit produced $ Estimated annual fixed manufacturing overhead Expected units of production Estimated monthly selling and administrative expenses Fixed Per unit sold $ 7,200 4,000 650 0.60 Expected number of frames sold in following months: March 275 April May 250 300 June 400 July August 375 425 Information for Problem PA08-03: Cash on hand at April 1 Percentage of sales in cash Percentage of credit sales collected during month of sale Percentage of credit sales collected in month following sale Percentage of direct material purchases paid in month purchased Percentage of direct material purchases paid in following month March 1 raw materials purchases Depreciation included in monthly fixed manufacturing overhead Amount expected to be paid for a piece of equipment Minimum cash balance required 10,800 80% 50% 50% 80% 20% $ 2,000 $ 150 $ 3,000 $ 10,000 1,000 Borrowing increments Requirement 1: Budget cash receipts April May June 2nd Quarter Budgeted sales revenue $ Cash collections $ Credit collections (current month) Credit collections (following month) Budgeted cash receipts $ $ $ $ Try again! Try again! Try again! Try again! Requirement 2: Budget cash disbursements April May June 2nd Quarter Budgeted raw materials purchases $ Cash disbursements Raw material purchases (current month) Raw material purchases (prior month) Direct labor Manufacturing overhead Less: Depreciation Selling and administrative expenses Purchase of equipment Total budgeted cash payments Try again! Try again! Try again! Try again! Requirement 3: Cash budget for Quarter 2 April May June 2nd Quarter Beginning cash balance Plus: Budget cash receipts Less: Budgeted cash payments Preliminary cash balance Cash borrowed/Repaid Ending cash balance $ $ $ %24 %24 %24 %24 %24 %24 %24 %24 %24
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Working Note1 May 300 Cash collections budget is as follows Particulars Apr Jun Jul Particulars Apri... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
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