Exercise 1

Requirement 1

July August September

May 43,000 - -
June 378,000 54,000 -
July 120,000 420,000 60,000
August - 180,000 630,000
September - - 100,000
Total Cash Collection 541,000 654,000 790,000

Requirement 2
Accounts Receivable as of September
Sales from August 90,000
Sales from September 400,000
Total Accounts Receivable 490,000
 Exercise 2
July
Budgeted sale 30,000
Ending inventory 4,500
Total needs 34,500
Beg. Inventory (3,000)
Required Production 31,500
Total
43,000
432,000 Exercise 3
600,000
810,000 First
100,000 Calculator produced 60,000
1,985,000 Multiply: Small chips per
calculator 3
Total production need 180,000

First
Production need 180,000
Add: Ending inventory 54,000
Total need 234,000
Less: Beginning inventory (36,000)
Required purchses 198,000
Multiply: Cost per chips 200
Cost of Purchases 39,600,000

Exercise 3
 First
Calculator produced 60,000
Multiply: Small chips per
calculator 3
Total production need 180,000

First
Production need 180,000
Add: Ending inventory 54,000
Total need 234,000
Less: Beginning inventory (36,000)
Required purchses 198,000
Multiply: Cost per chips 200
Cost of Purchases 39,600,000
August Semptember Quarter
45,000 60,000 135,000
6,000 5,000 5,000
51,000 65,000 140,000
(4,500) (6,000) (3,000)
46,500 59,000 137,000

Year 2 Year 3
Second Third Fourth First
90,000 150,000 100,000 80,000

3 3 3 3
270,000 450,000 300,000 240,000

Year 2 Year 3
Second Third Fourth First
270,000 450,000 300,000 1,200,000
90,000 60,000 48,000 48,000
360,000 510,000 348,000 1,248,000
(54,000) (90,000) (60,000) (36,000)
306,000 420,000 288,000 1,212,000
200 200 200 200
61,200,000 84,000,000 57,600,000 242,400,000
 Year 2 Year 3
Second Third Fourth First
90,000 150,000 100,000 80,000

3 3 3 3
270,000 450,000 300,000 240,000

Year 2 Year 3
Second Third Fourth First
270,000 450,000 300,000 1,200,000
90,000 60,000 48,000 48,000
360,000 510,000 348,000 1,248,000
(54,000) (90,000) (60,000) (36,000)
306,000 420,000 288,000 1,212,000
200 200 200 200
61,200,000 84,000,000 57,600,000 242,400,000
Exercise 4
Requirement 1
1st Quarter 2nd Quarter 3rd Quarter
Units to be produced 5,000 4,400 4,500
Direct Labor-hours 0.40 0.40 0.40
Total direct Labor Hours Needed 2,000 1,760 1,800
Direct Labor Cost per Hour 11 11 11
Total Direct Labor Cost 22,000 19,360 19,800

Requirement 2
1st Quarter 2nd Quarter 3rd Quarter
Units to be produced 5,000 4,400 4,500
Direct Labor-hours 0.40 0.40 0.40
Total direct Labor Hours Needed 2,000 1,760 1,800
Regular Hours Paid 1,800 1,800 1,800
Overtime Hours Paid 200 - -

Wages for Regular Hours 19,800 19,800 19,800

Overtime Wages 3,300 - -
Total Direct Labor Cost 23,100 19,800 19,800
 Exercise 5
Requirement 1
4th Quarter Year
4,900 18,800 Bugeted Direct Labor- Hours
0.40 0.40 Variable Overhead Rate
1,960 7,520 Variable Manufacturing Overhead
11 11 Fixed Manufacturing Overhead
21,560 82,720 Total Manufacturing Overhead
Less: Depreciation
Cash Disbursement- Manufacturing
4th Quarter Year Overhead
4,900 18,800
0.40 0.40 Requirement 2
1,960 7,520 Total Manufacturing Overhead
1,800 7,200 Total direct labor-hours for a year
160 360 Manufacturing Overhead rate for the year

19,800 79,200
2,640 5,940
22,440 85,140
 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
5,000 4,800 5,200 5,400 20,400
1.75 1.75 1.75 1.75 1.75
8,750 8,400 9,100 9,450 35,700
35,000 35,000 35,000 35,000 140,000
43,750 43,400 44,100 44,450 175,700
(15,000) (15,000) (15,000) (15,000) (60,000)

28,750 28,400 29,100 29,450 115,700

175,700
20,400
for the year 8.61
Exercise 6

1st Quarter 2nd Quarter 3rd Quarter

Budgeted unit sale 12,000 14,000 11,000
Variable selling and administrative
expense per unit 2.75 2.75 2.75
Variable expense 33,000 38,500 30,250
Fiexed andselling administrative
expense:
Advertising expense 12,000 12,000 12,000
Excutive salaries 40,000 40,000 40,000
Depreciation 16,000 16,000 16,000
Insurance - 6,000 -
Property taxes - - 6,000
Total fixed and selling 68,000 74,000 74,000
administrative expense

Total selling andadministrative

expense 101,000 112,500 104,250
Less: Depreciation (16,000) (16,000) (16,000)
Cash disbursement for sellig and
administratve expenses 85,000 96,500 88,250

Exercise 7

Quarter (000 ommited)

1 2 3
Cash balance, beginning 9 5 5
Add: Collection from customer 76 90 125
Total cash available 85 95 130
Less disbursement:
Purchaseof inventory 40 58 36
Operating expenses 36 42 54
Equipment purchases 10 8 8
Dividends 2 2 2
Total disbursements 88 110 100
Excess (deficiency) of cash
available over disbursements (3) (15) 30
Financing:
Borrowings 8 20 -
Repayments (including
interest) - - (25)
Total financing 8 20 (25)
Cash balance, ending 5 5 5
 4th Quarter Year
10,000 47,000

2.75 2.75
27,500 129,250

12,000 48,000
40,000 160,000
16,000 64,000
6,000 12,000
- 6,000
74,000 290,000

101,500 419,250
(16,000) (64,000)

85,500 355,250

0 ommited)
4 Year
5 9
100 391
105 400

32 166
48 180
10 36
2 8
92 390

13 10
 - 28

(7) (32)
(7) (4)
6 6