Beard Company has $13,100 in cash on hand on January 1 and has collected the following budgetdata:Beard CompanySalesCash receipts from customersCash payments for direct materialsDirect labor costsManufacturing overhead costs(including depreciation of $2,200 per month)Assume direct labor costs and manufacturing overhead costs are paid in the month incurred.Additionally, assume Beard Company has cash payments for selling and administrative expensesincluding salaries of $45,000 per month plus commissions that are 2% of sales, all paid the monthof the sale. The company requires a minimum cash balance of $10,000.1. Prepare a cash budget for January and February. Round to the nearest dollar.2. Will Beard Company need to borrow cash by the end of February??Beard CompanyCash BudgetFor the Two Months Ended February 28January FebruaryBeginning cash balanceCash receiptsCash availableCash payments:Purchases of direct materialsDirect laborJanuary February$528,300 $550,600$448,500 $511,100$178,436 $160,255$126,420 $121,256$55,909 $54,035Manufacturing overheadSelling and administrative expensesTotal cash paymentsEnding cash balance before financingMinimum cash balance desiredProjected cash excess (deficiency)Financing:BorrowingPrincipal repaymentsTotal effects of financingEnding cash balanceTotal

The cash budget records the cash receipts and cash payments during the period. The cash budget helps…

Beard Company has $13,100 in cash on hand on January 1 and has collected the following bud data: Beard Company Sales Cash receipts from customers Cash payments for direct materials Direct labor costs Manufacturing overhead costs (including depreciation of $2,200 per month) January February $528,300 $550,600 $448,500 $511,100 $178,436 $160,255 $126,420 $121,256 $55,909 $54,035

Beard Company has $13,100 in cash on hand on January 1 and has collected the following bud data: Beard Company Sales Cash receipts from customers Cash payments for direct materials Direct labor costs Manufacturing overhead costs (including depreciation of $2,200 per month) January February $528,300 $550,600 $448,500 $511,100 $178,436 $160,255 $126,420 $121,256 $55,909 $54,035

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3PA: Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc.,...

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