LRF Company?s budgeted sales and direct materials purchases are as follows. LRF?

ID: 2445063 • Letter: L

Question

LRF Company?s budgeted sales and direct materials purchases are as follows. LRF?s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. LRF?s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. (Round answers to 0 decimal places, e.g. 2,500.) (b) Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.) *Exercise 9-8 Rodriguez, Inc., is preparing its direct labor budget for 2014 from the following production budget based on a calendar year. Prepare a direct labor budget for 2014. Wage rates are expected to be $15 for the first 2 quarters and $16 for quarters 3 and 4. U haven't started Firefox in a while. Do you want to clean it up for a fresh, like-new experience? And by the way, welcome back!

Explanation / Answer

Expected Collections From Customers March

10% of Current Sales 34182

50% From Previous Month Sales 139260

36% From two month Previous 91152

Total Collections Expected From Customers 264594

Expected Payment for Direct Materials In the Month of March

40% of On account purchases in Current month 10381

60% of On account Purchases from Current Month 13293

Expected payments of D M in the month of march 23674

RODRIQUEZ INC

Direct Labor Budget

For The Year Ending December 31,2014

Quarter1

Quarter2

Quarter3

Quarter4

Year

Units

20110

25150

35420

30320

Labor Hours Per Unit

1.7

Total Hours

34187

42755

60214

51544

Wages Rate

Total Direct Labor Cost

512805

641325

963424

824704

2942258