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-   -   Please help w/ Managerial Accounting Homework questions (https://www.askmehelpdesk.com/showthread.php?t=460993)

  • Mar 28, 2010, 03:36 PM
    brigada510
    Please help w/ Managerial Accounting Homework questions
    I am stuck with these two problems, any help is appreciated :).
    1)
    The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

    • Sales at $452,000, all for cash
    • Merchandise inventory on October 31 was $193,000.
    • The cash balance November 1 was $10,000.
    • Selling and administrative expenses are budgeted at $59,500 for November and are paid for in cash.
    • Budgeted depreciation for November is $24,700.
    • The planned merchandise inventory on November 30 is $249,000.
    • The cost of goods sold is 65% of the selling price.
    • All purchases are paid for in cash.
    The budgeted cash receipts for November are:
    a. $476,700
    b. $158,200
    c. $293,800
    d. $452,000
    2)
    Castil Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

    August 20,400 units
    September 21,800 units
    October 21,700 units
    November 20,200 units
    December 21,400 units

    The company wants to maintain monthly ending inventories of Jurislon equal to 30% of the following month's production needs. On July 31, this requirement was not met since only 9,000 kilograms of Jurislon were on hand. The cost of Jurislon is $4.2 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
    The desired ending inventory of Jurislon for the month of September is:
    A. $41,202
    B. $21,800
    C. $21,700
    D. $41,013

    Thank you!
  • Apr 1, 2010, 09:30 PM
    brigada510

    Thanks for the help guys ! (o_0)

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