Posted: April 21st, 2016

What is the amount of cash that should be collected in March?

The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?
A) $9,100
B) $14,100
C) $20,100
D) None of the above.
5.

On January 1, Barnes Company has 8,000 units of Product A on hand. During the year, the company plans to sell 30,000 units of Product A, and plans to have 6,500 units on hand at year end. How many units of Product A must be produced during the year?
A) 28,500
B) 31,500
C) 30,000
D) 36,500
6.
Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The variable overhead rate is $5.80 per direct labor hour. The company s budgeted fixed manufacturing overhead is $39,930 per month, which includes depreciation of $12,870. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,300 direct labor hours will be required in April.

The April cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A) $59,070
B) $46,200
C) $27,060
D) $19,140
7.

When preparing a direct materials budget, the required purchases of raw materials in units equals:
A) raw materials needed to meet the production schedule + desired ending inventory of raw materials beginning inventory of raw materials.
B) raw materials needed to meet the production schedule desired ending inventory of raw materials beginning inventory of raw materials.
C) raw materials needed to meet the production schedule desired ending inventory of raw materials + beginning inventory of raw materials.
D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.
8.
(ch09profitplanning 028) All of Gaylord Company
All of Gaylord Company s sales are on account. Thirty five percent of the credit sales are collected in the month of sale, 45% in the month following sale, and the rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budgeted sales data for the company:

What is the amount of cash that should be collected in March?
A) $39,000
B) $37,000
C) $27,500
D) $51,000