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Silver Company makes a product that is very popular as a Mother's Day gift

Accounting

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1. Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:
   
   April May June Total
   Budgeted sales (all on account) $380,000 $580,000 $200,000 $1,160,000
   
   
   
   
   From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000.
   
   Required:
   1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
   (Continuation of Silver Company Question)
3. Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
   
   Sales in Units
   April 82,000
   May 90,000
   June 122,000
   July 96,000
   
   
   
   The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month's sales. The inventory at the end of March was 12,300 units.
   
   Required:
   Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.
4. Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
   
   Year 2
   Year 3
   First Second Third Fourth First
   Budgeted production, in bottles 80,000 110,000 170,000 120,000 90,000
   
   
   
   Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 32,000 grams of musk oil will be on hand to start the first quarter of Year 2.
   
   Required:
   Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.
5. The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
   
   
   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
   Units to be produced 11,400 8,500 8,700 11,000
   
   
   Each unit requires 0.45 direct labor-hours, and direct laborers are paid $20 per hour.
   
   
   Required:
   1. Complete the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
6. 2. Complete the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 4,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,600 hours anyway. Any hours worked in excess of 4,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.)
   (Refer to question Rordan Corporation)
7. The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
   
   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
   Budgeted direct labor-hours 9,800 9,100 9,400 10,200
   
   
   
   The company's variable manufacturing overhead rate is $4.25 per direct labor-hour and the company's fixed manufacturing overhead is $66,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,500 per quarter.
   
   Required:
   1. Complete the company's manufacturing overhead budget for the upcoming fiscal year.
8. 2. Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your final answers to 2 decimal places.) (Refer to question regarding Yuvwell Corporation).
9. The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:
   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
   Budgeted unit sales 16,000 18,000 15,000 14,000
   
   
   
   The company's variable selling and administrative expense per unit is $1.50. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $15,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,000 will be paid in the second quarter.
   
   Required:
   Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Round "Variable cost" answers to 2 decimal places.)
10. Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
    
    1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
    Total cash receipts $250,000 $400,000 $280,000 $300,000
    Total cash disbursements $309,000 $279,000 $269,000 $289,000
    
    
    The company's beginning cash balance for the upcoming fiscal year will be $34,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
    
    
    Required:
    Complete the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.)