51.Pacesetters, Inc., has actual sales for July and August and forecasted sales for September, October, November, and December as follows:
(a.) The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70 percent of the next month's sales. It is currently estimated that there will be 4,200 units on hand at the end of August. Calculate the number of units to be produced in each of the months of September, October, and November.
(b.) Each unit of finished product requires 6.5 pounds of raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 60 percent of the next month's estimated usage. It is currently estimated that 26,000 pounds of raw materials will be on hand at the end of August. Calculate the number of pounds of raw materials to be purchased in each of the months of September and October.
52.Avery's Bicycle Shop, a retail store, has an average gross profit ratio of 28 percent. The sales forecast for the next four months follows:
Management's inventory policy is to have ending inventory equal to 1.4 times the cost of sales for the subsequent month, although it is estimated that the cost of inventory at March 31 will be $170,000.
Calculate the purchases budget, in dollars, for the months of April, May, and June.
53.Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. From this information prepare an operating expense budget for the month of July.
54.Remote Center's sales are all made on account. The firm's collection experience has been that 20 percent of a month's sales are collected in the month of sale, 60 percent are collected in the month following the sale, and 18 percent are collected in the second month following the sale. The sales forecast for the months of August through November is:
Calculate the cash collections that would be included in the cash budgets for October and November.
55.Dominic's, Inc. had actual sales for January and February and forecasted sales for March, April, May, and June as follows:
Based on company experience, it is estimated that 35 percent of a month's sales are collected in the month of sale, 48 percent in the month following the sale, and 16 percent in the second month following the sale.
Calculate the estimated cash collections for March, April, and May.
56.The following information for the month of May has been provided for Bowser Company:
(a.) Prepare a cash budget for May.
57.Peachtree's Siding and Window Co. is a custom home improvement company. All sales are made on account: 30 percent of a month's sales are collected in the month of sale, 60 percent are collected in the month following the sale, and 8 percent are collected in the second month following the sale. Cash on hand on October 1 is estimated to be $32,000.
Merchandise purchases and operating expenses are paid as follows:
Peachtree's Siding and Window Co.'s budgeted income statement for each of the next three months is as follows:
Prepare a cash budget for the month of October.
58.The monthly cash budgets for the first quarter of 2013 are shown below ($000 omitted) for XYZ Company. A minimum cash balance of $40,000 is required. A line of credit has been established with ABC's bank at a 7.5% interest rate. Calculate the missing amounts:
59.XYZ Company produces high quality widgets. Three raw materials are converted into the finished product by two labor groups. Manufacturing overhead is applied to finished units based on direct labor hours. The following standards have been established for each widget produced:
a) Calculate the standard cost of producing 400 high quality widgets.