Baltimore Enterprises has budgeted sales for the months of September and October

Question

Baltimore Enterprises has budgeted sales for the months of September and October at $300,000 and $280,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. Calculate cash collections for the month of October.

A) $168,000

B) $232,000

C) $288,000

D) $290,000

The budgeted production of Fells Point Inc. is 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direct labor rate is $100 per hour. Calculate the budgeted cost of direct labor for the month.

A) $533,333.33

B) $500,000.00

C) $566,666.66

D) $633,333.33

Explanation / Answer

Baltimore Enterprises Details Sep Oct Budgeted sales               300,000               280,000 Cash Sales                 60,000                 56,000 Credit sales               240,000               224,000 Cash Collections Sep Oct Cash Collections                 60,000                 56,000 Credit sale Collection Sep               120,000               120,000 Credit sale Collection Oct               112,000 Total Sales Collection               288,000 So Total cash collection in Sep= $288,000 Answer C. is correct Fells Point Inc. Budgeted Production units                    8,000 Direct Labor Hr per unit                    0.667 Total Direct Hrs budgeted for month              5,333.33 Rate per Direct Labor Hr                       100 Budgeted Cost for Direct Labor for the month           533,333.33 Answer A. is correct

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.