Dilly farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $206,000 for November, 436, 900 for December, and $246,000 for tanuary Collections are expected to be 65% in the monith of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold Payment for menchandise is mate in the minth for purchase: Other monthly expenses to be paid in cash are $21,700 Monthly depreciation is $21,900 Ignore taxes. Balance Sheet October 31 The difference between cash receipts and cash disbursements for December would be: Muliple Choice A 40000 B 17400 C11300 D 39300

Dilly farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $206,000 for November, 436, 900 for December, and $246,000 for tanuary Collections are expected to be 65% in the monith of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold Payment for menchandise is mate in the minth for purchase: Other monthly expenses to be paid in cash are $21,700 Monthly depreciation is $21,900 Ignore taxes. Balance Sheet October 31 The difference between cash receipts and cash disbursements for December would be: Muliple Choice A 40000 B 17400 C11300 D 39300

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
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