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49. Expected cash collections in December are:
50. The cost of December merchandise purchases would be:
51. December cash disbursements for merchandise purchases would be:
52. The difference between cash receipts and cash disbursements in December would be:
The Kafusi Company has the following budgeted sales:
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month
following the month of sale, and the remainder in the second month following the month of sale.
There are no bad debts.
53. The budgeted cash receipts for July would be:
54. The budgeted accounts receivable balance on May 31 would be:
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Mitchell Company had the following budgeted sales for the last half of last year:
The company is in the process of preparing a cash budget and must determine the expected cash
collections by month. To this end, the following information has been assembled:
Collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
55. Assume that the accounts receivable balance on July 1 was $75,000. Of this amount,
$60,000 represented uncollected June sales and $15,000 represented uncollected May sales.
Given these data, the total cash collected during July would be:
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56. What is the budgeted accounts receivable balance on December 1?
Sartain Corporation is in the process of preparing its annual budget. The following
beginning and ending inventory levels are planned for the year.
Each unit of finished goods requires 2 grams of raw material.
57. If the company plans to sell 670,000 units during the year, the number of units it would
have to manufacture during the year would be:
58. How much of the raw material should the company purchase during the year?
59. The budgeted direct labor cost per unit of Product WZ would be:
60. The company plans to sell 38,000 units of Product WZ in June. The finished goods
inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted
direct labor costs for June would be:
Hardy, Inc., has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month should be equal to 20% of
the next month's sales in units. The inventory on May 31 contained 1,640 units. The company
needs to prepare a production budget for the next five months.
61. The beginning inventory for September should be:
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62. The total number of units produced in July should be:
Young Enterprises has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month should be equal to 10% of
the next month's sales in units. The inventory on May 31 fell short of this goal since it contained
only 400 units. The company needs to prepare a Production Budget for the next five months.
63. The beginning inventory in units for September should be:
64. The total number of units to be produced in July is:
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65. The desired ending inventory for August is:
3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five
months is as follows:
The company wants to maintain monthly ending inventories of Jurislon equal to 10% of the
following month's production needs. On July 31, this requirement was not met since only 6,900
kilograms of Jurislon were on hand. The cost of Jurislon is $3.00 per kilogram. The company
wants to prepare a Direct Materials Purchase Budget for the next five months.
66. The desired ending inventory of Jurislon for the month of September is:
67. The total cost of Jurislon to be purchased in August is:
