Problem A

Jan Feb Mar Apr May Jun

Units Sold 6,000 7,000 8,000 7,000 5,000 4,000
Selling Price 50 50 50 50 50 50
Sales 300,000 350,000 400,000 350,000 250,000 200,000

Jan 300,000
Feb 350,000
Mar 400,000
Total Q1 Sales 1,050,000

Problem B
Jan Feb Mar Apr May Jun
Product A
Units Sold 10,000 12,000 9,000 8,000 12,000 15,000
Selling Price 50 50 50 50 50 50
Sales 500,000 600,000 450,000 400,000 600,000 750,000

Product B
Units Sold 15,000 13,000 11,000 12,000 18,000 20,000
Selling Price 30 30 30 30 30 30
Sales 450,000 390,000 330,000 360,000 540,000 600,000

Total Sales 950,000 990,000 780,000 760,000 1,140,000 1,350,000

Apr 760,000
May 1,140,000
Jun 1,350,000
Total Q2 Sales 3,250,000

Problem C
Jul Aug Sep
Units Sold 10,000 11,000 12,100
Selling Price 75 75 75
Sales 750,000 825,000 907,500

Jul 750,000
Aug 825,000
Sep 907,500
Total Q3 Sales 2,482,500
Problem A
Jan Feb Mar Apr May
Sales 276,000 330,000 310,000 327,000 285,000

Cash Collections
Jan 110,400 165,600
Feb 132,000 198,000
Mar 124,000 186,000
Apr 130,800 196,200
May 114,000
Jun
Total Cash Receipts 110,400 297,600 322,000 316,800 310,200

Accounts Receivable
Jan 165,600 -
Feb 198,000 -
Mar 186,000 -
Apr 196,200 -
May 171,000
Jun
Accounts Receivable 165,600 198,000 186,000 196,200 171,000

Collection Pattern
Current month 40%
Following month 60%

Accounts Receivable Pattern

Current month 60%
Following month 0%

Problem B
Jan Feb Mar Apr May
Sales in Units 26,000 23,000 40,000 35,000 28,000
Selling Price 50 50 50 50 50
Sales 1,300,000 1,150,000 2,000,000 1,750,000 1,400,000

Cash Collections
Jan 260,000 910,000 130,000
Feb 230,000 805,000 115,000
Mar 400,000 1,400,000 200,000
Apr 350,000 1,225,000
May 280,000
Jun
Total Cash Receipts 260,000 1,140,000 1,335,000 1,865,000 1,705,000

Accounts Receivable
Jan 1,040,000 130,000 -
Feb 920,000 115,000 -
Mar 1,600,000 200,000 -
Apr 1,400,000 175,000
May 1,120,000
Jun
Accounts Receivable 1,040,000 1,050,000 1,715,000 1,600,000 1,295,000

Collection Pattern
Current month 20%
Following month 70%
2nd month after sale 10%

Accounts Receivable Pattern

Current month 80%
Following month 10%
2nd month after sale 0%
 Jun
304,000

171,000
121,600
292,600

-
182,400
182,400

Jun
34,000
50
1,700,000

175,000
 980,000
340,000
1,495,000

-
140,000
1,360,000
1,500,000
Problem A
Jan Feb Mar Apr May Jun
Sales units 6,000 7,000 8,000 7,000 5,000 4,000
Ending inventory 750 1,000 800 350 500 750
6,750 8,000 8,800 7,350 5,500 4,750
Beginning inventory 500 750 1,000 800 350 500
Production in Units 6,250 7,250 7,800 6,550 5,150 4,250

Problem B
Jan Feb Mar Apr May Jun
Sales units 15,000 10,000 10,000 13,000 11,000 13,000
Ending inventory 1,000 1,100 1,200 1,400 1,200 1,500
16,000 11,100 11,200 14,400 12,200 14,500
Beginning inventory 1,000 1,100 1,200 1,400 1,200
Production in Units 16,000 10,100 10,100 13,200 10,800 13,300

Problem C
Jan Feb Mar Apr May Jun
Sales units 6,000 7,000 8,000 7,000 5,000 4,000
Ending inventory 700 800 700 500 400
6,700 7,800 8,700 7,500 5,400 4,000
Beginning inventory 600 700 800 700 500 400
Production in Units 6,100 7,100 7,900 6,800 4,900 3,600
Problem A
Apr May Jun
Production units 20,000 35,000 50,000
Pcs 3 3 3
Total pcs 60,000 105,000 150,000
Ending inventory 28,000 35,000 30,750
88,000 140,000 180,750
Beginning inventory 20,000 28,000 35,000
Materials in pcs 68,000 112,000 145,750

Cost per piece 0.50 0.50 0.50

Total Cost 34,000 56,000 72,875

Problem B
Apr May Jun
Production units 30,000 32,500 30,750
Pcs 5 5 5
Total pcs 150,000 162,500 153,750
Ending inventory 20,000 27,500 20,000
170,000 190,000 173,750
Beginning inventory 20,000 27,500
Materials in pcs 170,000 170,000 146,250

Cost per piece 2 2 2

Total Cost 340,000 340,000 292,500

Problem C
Jan Feb Mar Apr May Jun
Production units 6,000 7,000 8,000 7,000 5,000 4,000
Pcs 10 10 10 10 10 10
Total pcs 60,000 70,000 80,000 70,000 50,000 40,000
Ending inventory 14,000 16,000 14,000 10,000 8,000
74,000 86,000 94,000 80,000 58,000 40,000
Beginning inventory 12,000 14,000 16,000 14,000 10,000 8,000
Materials in pcs 62,000 72,000 78,000 66,000 48,000 32,000

Cost per piece 5 5 5 5 5 5

Total Cost 310,000 360,000 390,000 330,000 240,000 160,000
Problem A
Jan Feb Mar Apr May
Purchases 650,000 575,000 710,000 590,000 630,000

Cash Payments
Jan 195,000 455,000
Feb 172,500 402,500
Mar 213,000 497,000
Apr 177,000 413,000
May 189,000
Jun
Total Cash Payments 195,000 627,500 615,500 674,000 602,000

Accounts Payable
Jan 455,000 -
Feb 402,500 -
Mar 497,000 -
Apr 413,000 -
May 441,000
Jun
Accounts Payable 455,000 402,500 497,000 413,000 441,000

Payment Pattern
Current month 30%
Following month 70%

Accounts Payable Pattern

Current month 70%
Following month 0%

Problem B
Jan Feb Mar Apr May
Purchases in Units 25,000 30,000 40,000 35,000 27,000
Purchase Price 10 10 10 10 10
Purchases in Units 250,000 300,000 400,000 350,000 270,000

Cash Payments
Jan 100,000 125,000 25,000
Feb 120,000 150,000 30,000
Mar 160,000 200,000 40,000
Apr 140,000 175,000
May 108,000
Jun
Total Cash Payments 100,000 245,000 335,000 370,000 323,000

Accounts Payabl;e
Jan 150,000 25,000 -
Feb 180,000 30,000 -
Mar 240,000 40,000 -
Apr 210,000 35,000
May 162,000
Jun
Accounts Payabl;e 150,000 205,000 270,000 250,000 197,000

Payment Pattern
Current month 40%
Following month 50%
2nd month after sale 10%

Accounts Payable Pattern

Current month 60%
Following month 10%
2nd month after sale 0%
 Jun
695,000

441,000
208,500
649,500

-
486,500
486,500

Jun
32,000
10
320,000

35,000
135,000
128,000
298,000

-
27,000
192,000
219,000
Problem A
Jan Feb Mar Apr May
Production in Units 6,000 7,000 8,000 7,000 5,000
Hours 2 2 2 2 2
Total Direct Labor Hours 12,000 14,000 16,000 14,000 10,000
Cost per hour 7.50 7.50 7.50 7.50 7.50
Total Direct Labor Cost 90,000 105,000 120,000 105,000 75,000

Problem B
Jan Feb Mar Apr May
Production in Units 6,000 7,000 8,000 7,000 5,000
Hours 0.50 0.50 0.50 0.50 0.50
Total Direct Labor Hours 3,000 3,500 4,000 3,500 2,500
Guaranteed Hours 3,750 3,750 3,750 3,750 3,750
Higher 3,750 3,750 4,000 3,750 3,750
Cost per hour 7.50 7.50 7.50 7.50 7.50
Production in Units 28,125 28,125 30,000 28,125 28,125
 Jun
4,000
2
8,000
7.50
60,000

Jun
4,000
0.50
2,000
3,750
3,750
7.50
28,125
Problem A
Jan Feb Mar Apr May
Sales in Units 6,000 7,000 8,000 7,000 5,000
VC per Unit 10 10 10 10 10
Total Variable Costs 60,000 70,000 80,000 70,000 50,000
Fixed Costs 205,000 205,000 205,000 205,000 205,000
Total Sales and Admin Expense 265,000 275,000 285,000 275,000 255,000

Problem B
Jan Feb Mar Apr May
Sales 480,000 550,000 515,000 495,000 520,000
Selling Price 10 10 10 10 10
Sales in Units 48,000 55,000 51,500 49,500 52,000
VC per Unit 4 4 4 4 4
Total Variable Costs 192,000 220,000 206,000 198,000 208,000
Fixed Costs 200,000 200,000 200,000 200,000 200,000
Total Sales and Admin Expense 392,000 420,000 406,000 398,000 408,000
 Jun
4,000
10
40,000
205,000
245,000

Jun
535,000
10
53,500
4
214,000
200,000
414,000