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Kitty [74]
3 years ago
9

The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you fin

d the following:
A. Cash balance on June 1 is $736.
B. Actual sales for April and May are as follows:
April May
Cash sales $10,000 $18,000
Credit sales 28,900 35,000
Total sales $38,900 $53,000
C. Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
D. Inventory purchases average 64% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month.
E. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner.
F. Rent is $4,100 per month.
G. Taxes to be paid in June are $6,780.
The owner also tells you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans.
Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar.
Business
1 answer:
leva [86]3 years ago
8 0

Answer and Explanation:

The Preparation of the cash budget for June is prepared below:-

                                      <u>Cash Budget</u>

                                <u>For the month of June</u>

<u>Particulars                                                   Amount</u>

Begining cash                                             $736

Add:

Collections:

Cash sales                                                  $18,600

Credit sales

Current month                                          $21,600   ($54,000 × 30%)

May credit                                                 $10,500    ($35,000 × 30%)

Credit sales of April                                   $5,896  (explained in note 1)

Total cash available                                   $57,332

Less: Disbursement

Purchase of inventory

Current month                                              $9,293 (explained in note 2)

($46,464 × 20%)

Prior month                                                   $27,136  (explained in note 2)

($33,920 × 80%)

Salary                                                             $11,750 (explained in note 3)

Rent                                                                $4,100

Taxes                                                              $6,780

Need's total                                                    -$1,727

Excess for cash available

over needs

Note:-

1. Amount which is received in June is

= $28,900 × 20%

= $5,780

Late fees = $5,780 × 2%

= $116

June receipts is

= $5,780 + $116

= $5,896

2. Purchase of inventory is

= $53,000 × 64%

= $33,920

Total sales = Cash + Credit sales

= $72,600

Puchase of inventory = $72,600 × 64%

= $46,464

3. Entirely amount is taken of salaries and wages if it paid or not.

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Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costin
Setler79 [48]

Answer:

Part 1.  Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate  = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Underapplied Overheads are: $1,350,000 -  $900,000 = $450,000

Part 3.  Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

Explanation:

Part 1.  Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

                                                    = $1,275,000/ 85,000

                                                    = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Applied Overheads = Actual hours × Predetermined overhead rate

                                 = 60,000 × $15

                                 =  $900,000

Actual Overheads = given = $1,350,000

Applied Overheads $900,000 < Actual Overheads $1,350,000, thus we have an underapplied situation

Therefore Underapplied Overheads are: $1,350,000 -  $900,000 = $450,000

Part 3.  Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Allocations:

                                         Totals          Weighted Average%       Allocation

Work In Process              $43,200                   4%                           $18,000

Finished Goods              $280,800               26%                           $73,008

Cost of Goods Sold        $756,000               70%                          $315,000

Total                                $1,080,000            100%                         $450,000

Journals:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

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3 years ago
When a foreman orders an assembly-line employee to carry out a task that the employee perceives as unethical, yet the employee f
Dmitry_Shevchenko [17]

Answer:

D) Legitimate power.

Explanation:

What is power exercising?

It is known that leaders have diverse styles. However, there is also a concept of exercising power which only identifies what power a figure is utilizing. There are eight powers of leaders.

Legitimate power: The power a leader use when he has a certain position in the company.

Foreman has authority over it's employees that's because the employee is compelled to do as the foreman is saying.

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3 years ago
You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. The portfolio beta is equal to 1.12. You
bija089 [108]

Answer:

The new beta of the portfolio 1.17

Explanation:

Portfolio beta is sum of weighted beta of all stocks consisting of it.

Portfolio beta = 1.12

Weight of each portfolio = 5,000

All weight or Amount = 5,000 * 20 = 100,000

Weight of one stock = 5,000 / 100,000 = 0.05

Foregone beta or beta of sold stock = 1

Acquired beta or beta of purchased stock = 2

Weight of both are same = 0.05

New beta = Portfolio beta - (foregone beta * weight) + (Acquired beta * weight)

New beta = 1.12 - (1 * 0.05) + (2 * 0.05)

New beta = 1.12 - 0.05 + 0.1

New beta = 1.17

So New portfolio beta is 1.17

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3 years ago
Organizing as a corporation makes it easier for the firm to raise capital. This is because corporations' stock-holders are not s
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Answer:

A) True

Explanation:

Organizing a partnership has several advantages; it is much faster, simpler and easy, start up costs are very low, etc.

But it has one huge disadvantage over a corporation, the partners are completely liable for the partnership's debts and obligations. That means that if the partnership goes bankrupt, the partners must pay all the debts and obligations. While a corporation's stockholders are only liable for the amount they invested in stock, i.e. you buy $10,000 in stock, then all you can lose is $10,000.

Also a corporations stocks are easily traded while a it is very complicated to transfer partnerships' rights.

3 0
3 years ago
True or false: Managers know the importance of staff orientation, training, and development, so scheduling employees for it rare
Marat540 [252]

It is True that Managers know the importance of staff orientation, training, and development, so scheduling employees for it rarely conflicts with other organizational priorities.

<h3>What is Staff Management?</h3>

Staff management refer to the activities carried out or tasks performed by organization mangers in order to supervise, train, guide, develop and orienttate employees to achieve improved goals or mission. The managers tend to train, orientate and develop their staffs through various means to achieve set goals.

Therefore, It is True that Managers know the importance of staff orientation, training, and development, so scheduling employees for it rarely conflicts with other organizational priorities.

Learn more about Staff management from the link below.

brainly.com/question/1264817

4 0
2 years ago
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