Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1. Collections from customers: January $101,000; February $158,000 Payments to suppliers: January $61,000; February $82,000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 2. 3. 4. 5. 6. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash.

Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1. Collections from customers: January $101,000; February $158,000 Payments to suppliers: January $61,000; February $82,000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 2. 3. 4. 5. 6. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash.

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 20E

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