#1John Inc. budgets sales for the third quarter of 2013:

July August September

Budgeted Sales (Dollars) $16,000

$20,000 $14,000

From past experience the company has learned that 75% of sales are collected in the month of the sale and 25% are collected in the month following the sale. Uncollectible accounts are unusual and may be considered to be 0%. Beginning accounts receivable were $3,000 all of which were expected to be collected in July.

Required:Prepare the company’s schedule of expected cash collections for the third quarter.

Calculate the company’s account receivable balance at the end of September.

#2BC Company has budgeted unit sales as follows:

Month Sales (Units)April 100,000May 140,000June 130,000July 150,000

The company is preparing a production budget for second quarter of 2013. Past experience has shown that end of month inventory levels will be equal to 10% of the following month’s sales. The inventory at the end of March was 10,000 units.

Prepare a production budget for the quarter.

#3Yamasaki Industries’ production budget for the first quarter of 2013 follows:

January February March

Budgeted Production (Units) 12,000 13,600

12,400

Each unit produced will require three kilograms of raw material. Raw materials cost $5 per kilogram. Management desires a monthly ending inventory of raw materials equal to 30% of the following month’s production needs. The desired ending inventory for March is 11,000 kilograms.

In addition, the beginning raw materials inventory for January is expected to be 10,800 kilograms.

Required:Prepare the company’s direct materials purchases budget for the upcoming quarter.

#4McCarthy Company’s production requirements are as follows:

January February MarchUnits to be produced 28,000 20,000 26,000

Each unit requires 1.5 direct labour hours to produce and workers are paid $10.00 per hour. The company has permanent employees who are guaranteed to be paid for at least 35,000 hours of work per month. If production requires less than 35,000 hours, they will be paid for 35,000 hours anyway. Any amount of work above 35,000 hours will be paid at 1.5 times their normal hourly rate.

RequiredPrepare the company’s direct labour budget for the quarter.

#5

Singular Inc budgets direct labour hours for 2013 as follows:

The company’s variable overhead rate is $5 per direct labour hour. The company’s fixed overhead is $30,000 per month – this number includes monthly depreciation of $5,000.

Prepare the company’s manufacturing overhead budget for the first quarter of 2013.

#6 The budgeted unit sales for Doug Corporation for the upcoming fiscal year are as follows:

April May JuneBudgeted Unit Sales 20,000 25,000 28,000

The company’s variable expenses include:

Shipping expenses: $5.00 per unitSales commissions: $10.00 per unitOther expenses: $7.00 per unit

The company’s fixed expenses are:Advertising: $125,000 per monthExecutive salaries: $200,000 per monthAmortization: $100,000 per month

Also, executive bonus payments of $50,000 will be made in the April and June, and a major building repair of $75,000 will be paid in May.

Required:In good form, prepare the company’s selling and administrative budget for the upcoming quarter. The company is particularly interested in knowing its cash disbursements for selling and admin expenses.

#7 Joe’s Jumpers produces and sells jumpsuits worn by skydivers. The company had the following estimated cash flows for 2012:

The company begins the year with $20,000 in cash and requires a minimum cash balance of $10,000. The company may borrow any amount from a local bank at an annual interest rate of 3%, The borrowing must occur at the beginning of any quarter and all repayments must be made at the end of any quarter. Interest must be repaid at the time of loan repayment.

Required:In good form, prepare the company’s cash budget for the upcoming year.