Question
16 is rough
15) Whitaker Company budgets payroll at $3,000 per month plus a percentage of monthly sa les. The 15) June operating expense budget includes total payroll of $10,500 with budgeted sales of $150,000. Sales for July are budgeted at $165,000, while purchases of inventory for July are budgeted at 585,000. Depreciation and insurance for July are estimated at $750 and $500, respectively. Expenses related to purchasing inventory are budgeted at 5% of purchases for the month. The purchase of $3,000 in equipment and $1,200 in furniture is expected in July What are the total operating expenses budgeted for July? A) $21,250 B) $16,750 C) $20,950 D) $17,050 16) Bolin's anelite clothier, expects its November sales to be 30% higher than its October sales of 16) $200,000. Purchases were $100,000 in October and are expected to be $150,000 in November. All sales are on credit and are collected as follows 30 in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of purchase and 75% in the following month. The cash balance on November 1 is $9,000. What will be the cash balance on November 30? A) $114,500 B) $87,000 C) $140,000 D) $149,000 17) Miller company's budgeted variable selling and administrative expenses are $8.50 per unit sold. 17) Miller's budgeted sales are 5,000 units during April, and budgeted selling and administrative fixed costs are $47,000 for the month, which includes depreciation expense of $7,000. What are Miller budgeted cash disbursements for selling and administrative expenses? 's A) $40,000 B) $89,500 C) $82,500 D) $47,000 18) A sporting goods store purchased $4,500 of ski boots in September. The store had $2,000 of ski oots on hand at the beginning of September, and expected to have $2,500 of ski boots at the end of September to cover part of anticipated October sales. What is the budgeted cost of goods sold for September? A) $4,500 B) $6,000 C) $6,500 D) $4,000 19) Farmington Enterprises has budgeted sales for the months of September and October at $300,000 19) 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 what are the October cash collections from customers? A) $288,000 B) $290,000 C) $232,000 D) $168,000 Tool and Die Company's forecasted sales for April, May, June, and July are $150,000, 20) $225,000, $180,000, and S210000, respectively. Sales are 50% cash and 50% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 60% of sales and ending inventory is maintained at $85,000 plus 20% of the following month's cost of goods sold. All inventory purchases are paid 20% in the month of purchase and 80% in the following month.
Explanation / Answer
Answer for question no 18: = $ 4,000
Given data for September month:
Purchase = $ 4,500
Beginning inventory = $ 2,000
Ending inventory = $2,500
Budgeted cost of goods sold = Purchase + beginning inventory – closing inventory
= 4,500 + 2,000 – 2,500
= $ 4,000
Answer for question no 19: = $ 288,000
Given data:
September month sales = $ 300,000
October month sales = $ 280,000
In monthly sales 80% credit and 20% cash
Of the credit sales 50% collected in the same month and 50% following month.
October month cash collection:
20% of October cash sales (280,000 * 20 /100) = $ 56,000
+ 50% of October credit sales (280,000-56,000) i.e., (224,000 *50 /100) = $ 112,000
+ 50% of September credit sales (300,000-60,000) i.e.,(240,000 *50/100) = $ 120,000
So October month cash collection is = $ 288,000
