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2 years ago

Moorcroft Company’s budgeted sales and direct materials purchases are as follows:

Business

1 answer:

gladu [14]2 years ago

5 0

Answer:

1) Month Sales

April $299,000

May $337,000

June $387,000

Schedule of expected collections

For the month of June, 202x

Cash sales during June = $387,000 x 40% = $154,800

Collection from June's credit sales = $232,200 x 20% = $46,440

Collection from May's credit sales = $202,200 x 50% = $101,100

Collection from April's credit sales = $179,400 x 26% = $46,644

Total cash collections during June = $348,984

Month DM purchases

April $44,000

May $55,000

June $55,000

Schedule of expected cash payments for direct materials purchases

For the month of June, 202x

Cash purchases during June = $55,000 x 50% = $27,500

Cash payments for May's purchases = $27,500 x 40% = $11,000

Cash payments for April's purchases = $22,000 x 60% = $13,200

Total cash payments during June = $51,700

2) Month Sales

April $299,000

May $337,000

June $387,000

Schedule of expected collections

For the month of June, 202x

Cash sales during June = $387,000 x 40% = $154,800

Collection from June's credit sales = $232,200 x 30% = $69,660

Collection from May's credit sales = $202,200 x 50% = $101,100

Collection from April's credit sales = $179,400 x 18% = $32,292

Total cash collections during June = $357,852

It would be worth to pay the collector since the 2% reduction in uncollectible accounts is worth much more than the $1,000 that he/she earns.

3) Month DM purchases

April $44,000

May $55,000

June $55,000

Schedule of expected cash payments for direct materials purchases

For the month of June, 202x

Cash purchases during June = $55,000 x 40% = $22,000

Cash payments for May's purchases = $33,000 x 40% = $13,200

Cash payments for April's purchases = $26,400 x 60% = $15,840

Total cash payments during June = $51,040

Cash payments will decrease a little in June.

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Answer: The company must rebuild the units.

Explanation: We must compare the benefits obtained by selling the defective units with the benefits obtained by selling the reconstructed units.

If we sell the defective units: 600 units × $2 = $1200

Versus

If we sell the rebuilt units: 600 units x ($5 - $0.60 [Materials] - $1 [Labor] - $0.80 [Overhead]) =

= 600 x ($2,60) = $1560.

Then it is convenient to rebuild the defective units to obtain a greater benefit.

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2 years ago

A friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to fi

Inessa05 [86]

Answer: 1. 12. 2. 1.090. 3. 0.08327

Explanation:

Here is the complete question:

friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:

1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).

The value of f is:

2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).

The value of s is:

3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.

The natural rate of unemployment (in percent) is

1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.

The value of f is: 12

2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks

s = 1.090

The value of s is: 1.090

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2 years ago

Bowering Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.60 Direct labor

ArbitrLikvidat [17]

Answer:

3. $53,550

Explanation:

Product Cost:

Cost per Unit Cost per Period Direct materials $ 6.60

Direct labor $ 3.85

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 81,000

Period Costs:

Sales commissions ($0.50 x 9,000 ) $4,500

Variable administrative expense ($0.50 x 9,000 ) $4,500

Fixed selling and administrative expense $44,550

Total Period Cost $53,550

For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is $53,550.

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2 years ago

Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operati

Maksim231197 [3]

Answer:

Highland construction company

Income statement

For the year ended December 31, 2014

Sales revenue=128,400

Total expense=80,200

Pretax income=48,200

Tax =14,460

Net income =33,740

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Statement of stockholder's equity

For the year ended December 31,2014

Balance December 31,2013=0

Stock issuance =87,000

Add:Net income

Less:Dividends

Balance December 31,2014=87,000

Highland construction company

Balance sheet

December 31,2014

Account payable=46,140

Salaries payable=2,520

Total liabilities

Common stock=87,000

Retained earnings=23,740

As complete information is not given so only relevant portion is done.

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2 years ago

A manufacturing company plans to forecast its sales. Upper management plans to assemble its most senior personnel to have meetin

ludmilkaskok [199]

Answer:

B. Jury of executive opinion method.

Explanation:

There are several methods of forecasting sales, one of which is Jury of executive opinion method. In this method, senior executives in an organization are called upon by the upper management to analyze, deliberate and come up with what probably will be the future sales of the organization which will in turn drive future revenue.

In as much as the people involved have experience in terms of forecasting, their overall submission will form the basis of future sales forecast of the organization.

Unlike Delphi method which involves the use of experts in analyzing and forecasting future sales and whose procedure is somewhat rigorous and formal, jury of executive opinion is not formal and only rely on the outcome of deliberations done by the managers appointed by the organization.

Other method of sales forecast are market share method, buyer intention method. etc.

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2 years ago