The accounting team at Concord Corp. plans to get a jump-start on its budget for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The accounting team at Concord Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production-related cash expenditure, direct materials. The team has gathered the following information: 1. 2. 3. 4. 5. The budgeted selling price for the year is $2.40 per unit. Sales volumes are budgeted as follows for the last month of quarter 1, for all of quarter 2, and for part of quarter 3. (a) March 24,200 April May 22,300 24,600 23,500 June July 24,800 August 22,600 Historically, 25% of Concord's sales are cash sales. Of the remaining credit sales, 40% are collected in the month of sale, while 56% are collected the following month. The remainder is deemed uncollectible. Management sets its ending FG Inventory goal at 10% of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. The target ending inventory for Concord's primary direct material is 20% of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires 4 pounds of DM at an expected cost of $0.20 per pound. Concord pays for 35% of its purchases in the month of purchase and 65% the month after purchase. Total budgeted purchases in March are $18,700. For all quarterly budgets, report monthly amounts as well as the total for the quarter. Prepare the sales forecast and corresponding cash receipts budget for Concord Corp. for its second quarter. (Round budgeted selling price per unit to 2 decimal places, e.g. 15.25.) $ $ Cash Collections Budget Beginning A/R (April) April cash sales. April credit sales May cash sales (Round answers to 2 decimal places, e.g. 15.25.) May credit sales June cash sales June credit sales April Total cash. receipts $ 22300 $ 2.4 53520 $ April $ May $ 24600 2.4 59040 May $ $ June $ $ 23500 2.4 56400 June $ $ Quarter $ 70400 2.4 168960 Qui Production Budget Purchases Budget $ $ April April $ $ May May $ $ June June Prepare Concord Corp's cash disbursements budget for the DM purchases for the second quarter. (Round answers to 2 decimal places, e.g. 15.25.) A/P balance from March April purchases May purchases June purchases Total cash disbursements April $ LA $ May LA $ LA June LA LA Calculate how much the total COGS per unit could be for the company to generate 40% gross margin on its sales. Considering the DM cost per unit already known, how much of this total COGS per unit is available to cover DL and MOH cost? (Round answers to 2 decimal places, e.g. 15.25.) ✓: M:[ eTextbook and Media $ $ The accounting team at Concord Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production-related cash expenditure, direct materials. The team has gathered the following information: 1. 2. 3. 4. 5. The budgeted selling price for the year is $2.40 per unit. Sales volumes are budgeted as follows for the last month of quarter 1, for all of quarter 2, and for part of quarter 3. (a) March 24,200 April May 22,300 24,600 23,500 June July 24,800 August 22,600 Historically, 25% of Concord's sales are cash sales. Of the remaining credit sales, 40% are collected in the month of sale, while 56% are collected the following month. The remainder is deemed uncollectible. Management sets its ending FG Inventory goal at 10% of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. The target ending inventory for Concord's primary direct material is 20% of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires 4 pounds of DM at an expected cost of $0.20 per pound. Concord pays for 35% of its purchases in the month of purchase and 65% the month after purchase. Total budgeted purchases in March are $18,700. For all quarterly budgets, report monthly amounts as well as the total for the quarter. Prepare the sales forecast and corresponding cash receipts budget for Concord Corp. for its second quarter. (Round budgeted selling price per unit to 2 decimal places, e.g. 15.25.) $ $ Cash Collections Budget Beginning A/R (April) April cash sales. April credit sales May cash sales (Round answers to 2 decimal places, e.g. 15.25.) May credit sales June cash sales June credit sales April Total cash. receipts $ 22300 $ 2.4 53520 $ April $ May $ 24600 2.4 59040 May $ $ June $ $ 23500 2.4 56400 June $ $ Quarter $ 70400 2.4 168960 Qui Production Budget Purchases Budget $ $ April April $ $ May May $ $ June June Prepare Concord Corp's cash disbursements budget for the DM purchases for the second quarter. (Round answers to 2 decimal places, e.g. 15.25.) A/P balance from March April purchases May purchases June purchases Total cash disbursements April $ LA $ May LA $ LA June LA LA Calculate how much the total COGS per unit could be for the company to generate 40% gross margin on its sales. Considering the DM cost per unit already known, how much of this total COGS per unit is available to cover DL and MOH cost? (Round answers to 2 decimal places, e.g. 15.25.) ✓: M:[ eTextbook and Media $ $
Expert Answer:
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date:
Students also viewed these accounting questions
-
The Rust Corporation has gathered the following information for activities during 2010: Credit sales ......................................................................................... $...
-
Develop a linear regression model: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007...
-
A company has gathered the following information from a recent production run: Standard variable overhead rate......... $10 Actual variable overhead rate .......... 8 Standard process...
-
Antonio Banderos & Scarves makes headwear that is very popular in the fall/winter season. Units sold are anticipated as: October .......... 1,250 November ......... 2,250 December ......... 4,500...
-
The chief financial officer for Eagles Beach Wear and Gift Shop is planning for the companys cash flows for the next six months. The following table summarizes the expected accounts receivables and...
-
Brian gets paid $ 5 0 0 every Friday, but the month ended on Wednesday. How much will the company accrue for Brian's wages?
-
Show that the average residual is zero, that is, show that \(n^{-1} \sum_{i=1}^{n} e_{i}=0\).
-
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving...
-
An underground fire service main in a methanol plant consists of glass reinforced plastic material. The piping is rated for 200 psi. The pump's churn pressure is rated at 280 psi. Numerous leaks have...
-
The previous year was Amys first year of operating the bookstore. Amy and Ken elected to carry forward a $4,752 net operating loss from the first year of business into 2015. (Note: Net operating...
-
A . Prepare an income statement for the year ended dec . 3 1 2 0 2 3 B . Prepare a retianed earnings statement for the year ended dec. 3 1 2 0 2 3 C . Prepare the stock holders equity section of the...
-
Given two sentences, s and t, t is a subsequence of s if all of the words in toccur in the same order within s. Words do not have to appear contiguously in s, but order must be maintained. For...
-
Crossland would like to move to just-in-time (JIT) system of purchasing its goods from Essel and as a result Essel is contemplating major changes to its working practices. Essel's CEO has asked you,...
-
Consider a logistic map defined by the recursive relation Xn+1 = n (1 - n), (1) defined within the parameter range 0 < < 4. (a) Write (and attach) PYTHON code to simulate the logistic map. For an ap-...
-
Calculate the monthly returns for each of the stocks: a. Calculate the arithmetic average monthly return for each stock. (3 points) b. Calculate the geometric average monthly return for each stock....
-
In my dessertshop.py, in my Order class I have a __str__ method that prints to the terminal a "table" of all my dessert items in a nice formatted way. I have gotten rid of unnecessary commas in this...
-
A stock that currently trades at $10 has a beta of 1 . 1. The risk-free interest rate for the coming year is 3 percent, and the market price of risk is 7 percent. (a) What should the expected return...
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
The municipality of Lossburgh reported the following information about its pension fund in its CAFR, for the year ended June 30, 2013: Net Assets Held in Trust for Pension Benefits ........$...
-
What are several incentive approaches? Are there weaknesses in any of the approaches?
-
What is the purpose of an accounts receivable aging schedule? How should it be used?
-
Show that if two given networks are described by \(Y_{i}=\sum_{j=1}^{M} T_{i j} X_{j}\) and \(Y_{i}^{\prime}=\) \(\sum_{j=1}^{M} T_{i j}^{\prime} X_{j}^{\prime}\), then these networks are...
-
Some FIR filters present a rational transfer function: (a) Show that the transfer function \[H(z)=\frac{\left(r^{-1} z ight)^{-(M+1)}-1}{r e^{\mathrm{j} 2 \pi /(M+1)} z^{-1}-1}\] corresponds to an...
-
Plot the pole-zero constellation as well as the magnitude response of the transfer function of Exercise 4.20 for \(M=6,7,8\) and comment on the results. Exercise 4.20 Some FIR filters present a...
Study smarter with the SolutionInn App