Question

Shadee Corp. expects to sell 530 sun visors in May and 380 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 70 units.

It expects the following unit sales for the third quarter:      

July	530
August	490
September	430

Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 37 percent is collected during the following month, and 11 percent is never collected.

Required:

Calculate Shadee’s total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

The following information is available for Pioneer Company:

• Sales price per unit is $100.
• November and December, sales were budgeted at 2,920 and 3,560 units, respectively.
• Variable costs are 10 percent of sales (6 percent commission, 2 percent advertising, 2 percent shipping).
• Fixed costs per month are sales salaries, $4,200; office salaries, $2,900; depreciation, $2,300; building rent, $3,700; insurance, $1,700; and utilities, $900.

Required:

Determine Pioneer's budgeted selling and administrative expenses for November and December.

Ceder Company has compiled the following data for the upcoming year:

• Sales are expected to be 12,000 units at $45.00 each.
• Each unit requires 3 pounds of direct materials at $2.10 per pound.
• Each unit requires 1.6 hours of direct labor at $12.00 per hour.
• Manufacturing overhead is $3.10 per unit.
• Beginning raw materials inventory is $3,600.00.
• Ending raw materials inventory is $4,250.00.
• Selling and administrative costs totaled $136,020.

Required:
1. Determine Ceder's budgeted cost of goods sold. (Do not round the intermediate values.)



2. Complete Ceder's budgeted income statement. (Do not round the intermediate values.)

Walter Company has the following information for the month of March:

Cash balance, March 1	$	16,770
Collections from customers		37,950
Paid to suppliers		22,600
Manufacturing overhead		6,400
Direct labor		8,400
Selling and administrative expenses		4,500

Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,350 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,300 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000.
   
Required:
Prepare Walter’s cash budget for the month of March.

Shamrock Shades operates in mall kiosks throughout the southwestern U.S. Shamrock purchases sunglasses from bulk discounters and sells the sunglasses in the mall kiosks. Shamrock is in the process of budgeting for the coming year and has projected sales of $310,000 for January, $390,000 for February, $550,000 for March, and $590,000 for April. Shamrock’s desired ending inventory is 30 percent of the following month’s cost of goods sold. Cost of goods sold is expected to be 20 percent of sales.    

Required:
Compute the required purchases for each month of the first quarter (January–March).

Answer 1

1	Shadee Corp:
	Cash Collections Schedule:	Aug	Sep			Jul	Aug	Sep
	Total Sales	8820	7740		Sales Units	530	490	430
					Sales Value	9540	8820	7740
	Cash Sales(60%)	5292	4644		(Units*18)
	Collection of Credit Sales:				Cash Sales(60%)	5724	5292	4644
	June Sales-Credit Sales*37%	1412	0		Credit Sales(40%)	3816	3528	3096
	August Sales	1835	1305
	(3528*52%)/(3528*37%)
	Sep Sales	0	1610
	(3096*52%)
	Total	8538	7559
2	Pioneer's:
	Sales	Nov	Dec
	Sales Units	2920	3560
	Sales Value	292000	356000
	(Units*100)
	Budgeted S&A Expense:	Nov	Dec
	Variable Costs:
	Commission(6% of Sales)	17520	21360
	Advertising(2% of Sales)	5840	7120
	Shipping(2% of Sales)	5840	7120
	Total Variable Expense	29200	35600
	Fixed Costs:
	Sales Salaries	4200	4200
	Office Salaries	2900	2900
	Depreciation	2300	2300
	Building Rent	3700	3700
	Insurance	1700	1700
	Utilities	900	900
	Total Fixed Costs:	15700	15700
	Total	44900	51300
Note:	You have asked 5 Questions in a single problem. Only first 2 have been answerd in this