Question

1.) Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 29,800 units. June and July sales are estimated to be 298,000 and 308,000 units, respectively. Trago assigns variable overhead at a rate of $3.60 per unit of production. Fixed overhead equals $418,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.

2.) The Ballentine Company expects sales for June, July, and August of $53,000, $59,000, and $49,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following sale, 40% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?

3.) Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $770,000 and cost of goods sold is 40% of sales. The expected selling expenses are $85,000 and the expected general and administrative expenses are $94,000, which includes $27,000 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:

Answer 1

Answer with working given below