The Gomez Company, a merchandising firm, has budgeted its activity for December
ID: 2449521 • Letter: T
Question
The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information
• Sales at $580,000, all for cash.
• Merchandise Inventory on November 30 was $290,000.
• The cash balance at December 1 was $28,000.
• Selling and administrative expenses are budgeted at $36,000 for December and are paid for in cash.
• Budgeted depreciation for December is $28,000.
• The planned merchandise inventory on December 31 is $302,000.
• The cost of goods sold represents 66% of the selling price.
• All purchases are paid for in cash.
The budgeted cash disbursements for December are:
$418,800
$394,800
$430,800
$458,800
Salge Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $7.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $94,050 per month, which includes depreciation of $16,280. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 5,700 direct labor-hours will be required in September.
The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for September should be:
$7.80
$16.50
$24.30
$21.40
Deschambault Inc. is working on its cash budget for December. The budgeted beginning cash balance is $26,000. Budgeted cash receipts total $178,000 and budgeted cash disbursements total $168,000. The desired ending cash balance is $50,000. To attain its desired ending cash balance for December, the company needs to borrow:
$86,000
$0
$14,000
$50,000
Avril Company makes collections on sales according to the following schedule:
25% in the month of sale
60% in the month following sale
11% in the second month following sale
The following sales are expected:
Cash collections in March should be budgeted to be:
$134,400
$140,000
$130,000
$126,200
25% in the month of sale
60% in the month following sale
11% in the second month following sale
The following sales are expected:
Explanation / Answer
$430,800 As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Statement showing cash disbursements Particulars Amount Cash Disbursements: Selling and admin Exp 36,000.00 Purchases (Refer WN) 394,800.00 Total Cash Disbursements 430,800.00 Working Notes Statement showing Computation of purchases Opening Stock 290,000.00 COGS = 580000*66% 382,800.00 Closing Stock 302,000.00 Purchases(COGS+CS-OS) 394,800.00
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