The company PR Products Corp. estimates that its quarterly sales for the next year are as follows: (units) The price per unit is $ 70
1. 1 Quarter 30,000 units
2. 2 Quarter 50,000
3. 3 Quarter 60,000
4. 4 Quarter 40,000
Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter they are made and 40% in the following quarter.
Finished Goods' desired ending inventory represents 20% of next or next quarter unit sales. Finished Goods starting inventory is 6,000 units.
3 pounds of Raw Material per unit is required for the production required. Raw Material's desired inventory is 10% of the required production for the next quarter. Raw Material's initial inventory is 12,000 units. The cost of Raw Material is $ 1.00 per pound.
Accounts payable on 12/31 / X0 total $ 60,000. Payments for Raw Material purchases are made at the rate of 70% in the quarter of purchase and the other 30% in the following quarter.
The invested time of direct labor per unit is 1.5 hour. The hourly direct labor cost is $ 20.00.
Expected Cash Disbursements ( Pagos)
T1 |
T2 |
T3 |
T4 |
Year |
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Account Payable 12/31/X0 |
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Total Cash Disbursements |
$ |
$ |
$ |
$ |
$ |
Direct Labor Budget
T1 |
T2 |
T3 |
T4 |
Año |
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Units to be produced |
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DL Time per unit |
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Total hours of DL needed |
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DL Cost per hour |
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Total DL Cost |
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Solution:
A.Expected Cash Collections:
B.Direct Labour Budget:
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