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Chapter 10
Chapter 10
REVIEW 10-13
OAK CREEK COMPANY
Sales Budget (in thousands)
For the Year Ending December 31, 2012
Quarter
Unit sales
Unit price
Total sales
1
200
$40
$8,000
2
250
$40
$10,000
3
250
$40
$10,000
4
300
$45
$13,500
Year
1,000
$41,500
1
200
50
250
40
210
2
250
50
300
50
250
3
250
60
310
50
260
2
4
300
44
344
60
284
Year
1,000
44
1,044
40
1,004
Units to be produced
Direct materials per unit
Total kilograms required for
production
Add: desired ending
inventory
Total materials required
Less: beginning materials
inventory
Direct materials purchases
Cost per kilogram
Total cost of direct materials
purchases
1
210
2
Quarter
2
3
250
260
2
2
4
284
2
Year
1,004
2
420
500
520
568
5
0
52
57
50
470
552
577
618
4
2
50
52
57
428
502
525
561
$10.00 $10.00 $10.00 $10.00
2,008
42
2,016
$10.00
$20,160
50
2,058
EXERCISE 10-25
(a)
12,000 25%
13,000 25%
Month
Jan
Feb
10,000
12,000
3,000
3,250
13,000
15,250
2,500
3,000
10,500
12,250
Total
22,000
3,250
25,250
2,500
22,750
(b)
TYSON CHANDLER COMPANY
Direct Materials Budget (kgs)
For the Month Ending January 31, 2012
Units to be produced
Direct materials per unit (kg)
Total required for production
Add: desired ending inventory1
Total materials required
Less: beginning inventory2
Materials purchases in units
Cost per kilogram
Total cost of materials purchases
1
2
Total
10,500
2
21,000
9,800
30,800
8,400
22,400
$3.00
$67,200
EXERCISE 10-27
NUNEZ COMPANY
Cash Budget
For the Two Months Ending February 28, 2012
Month
Beginning cash balance
Add: Cash receipts
Collections from customers
Sale of marketable securities
Total receipts
Total available cash
Less: Disbursements
Direct material
Direct labour
Manufacturing overhead1
Selling and administrative expenses
Total disbursements
Excess (deficiency) of available cash
over cash disbursements
Financing:
Borrowing
Repayment
Total financing
Ending cash balance
1
Jan
$45,000
Feb
$25,000
Total
$45,000
100,000
10,000
110,000
155,000
160,000
160,000
185,000
260,000
10,000
270,000
315,000
60,000
30,000
25,000
15,000
130,000
80,000
45,000
30,000
20,000
175,000
140,000
75,000
55,000
35,000
305,000
25,000
10,000
10,000
$25,000
15,000
15,000
$25,000
15,000
15,000
$25,000
EXERCISE 10-29
(a)
NIU COMPANY
Schedule of Expected Collections from Customers
For the Month Ending March 31, 2012
$41,040
63,000
120,000
18,000
$242,040
NIU COMPANY
Schedule of Expected Payments for Direct Materials
For the Month Ending March 31, 2012
$7,000
22,500
13,500
$43,000
PROBLEM 10-43A
THE BIG SISTER COMPANY
Cash Budget
For the Four Quarters Ending December 31
1
$25,000
150,000
320,000
470,000
495,000
400,000
350,000
340,000
35,000
1,125,000
(630,000)
Quarter
2
3
$10,000
$11,250
160,000
200,000
100,000
320,000
4
$10,938
160,000
320,000
480,000
490,938
360,000
370,000
420,000
431,250
100,000
35,000
70,000
205,000
165,000
100,000
35,000
135,000
296,250
100,000
35,000
150,000
285,000
205,938
150,000
3,750
(153,75
0)
$11,250
275,000
10,312
(285,31
2)
$10,938
185,000
9,250
(194,19
4)
$11,688
640,000
640,000
$10,000
PROBLEM 10-44A
(a)
ROTECH CO.
Cash Budget
For the Second Quarter Ended June 30, 2012
$45,000
270,000
200,000
470,000
515,000
300,000
15,000
29,000
8,000
15,000
20,000
387,000
128,000
$128,000
PROBLEM 10-49B
THE BIG BOY COMPANY
Cash Budget
For the Four Quarters Ending December 31
1
$23,000
130,000
260,000
390,000
413,000
360,000
350,000
430,000
50,000
1,190,000
(777,000)
Quarter
2
3
$8,000
$8,400
130,000
500,000
250,000
260,000
4
$13,100
130,000
260,000
390,000
403,100
630,000
638,000
510,000
518,400
100,000
50,000
150,000
300,000
338,000
100,000
50,000
150,000
368,400
100,000
50,000
50,000
200,000
203,100
320,000
9,600
(329,60
0)
$8,400
340,000
15,300
(355,30
0)
$13,100
125,000
7,500
(132,50
0)
$70,600
785,000
785,000
$8,000