can someone please explain the steps? CHAPTER 23 NAME 10-MINUTE QUIZD SECTION, 1

Question

can someone please explain the steps?

CHAPTER 23 NAME 10-MINUTE QUIZD SECTION, 1 Hayden Corporation budgeted its cost of finished goods manufactured at $500,000 for May Its May 31 finished goods inventory budgeted to beltwice the level of fts May mished goods inventory. The cost of goods soldb Hayden's finished goods inventory at May 31 is budgeted at: S 2 Suffolk Corporation expects to incir $360,000 in expenses $70,000, and ex during June (excluding interest and taxes yments are budgeted at $35, Of this amount Suffolk's payables total $60,000 t June and are budgeted to increase to s70,00 by une Payments on current payables budgeted for June total: S 3 Weaver Corporation pays its debtservice costs in fil each month April debt service costs are budgcted at $000 However, of this amount, only 1,000 represents a reduction.of prancipat. The company expects to issue no new debt during the month. What cash disbursement amount will be shown on Weaver's debt service budget? s 40cc Bergen Corporation's accounts receivable remain outstanding approximatel inventory remains in stock approximately 12 days be days to deliver inventory to Bergen once an order is received Bergen's operating cycle is: 4 days 4 It takes suppliers approximately 7 12+ 5 As budgeted output per the flexible budget increases, per-unit fixed costs (increase/decrease):

Explanation / Answer

1. Let the beginning inventory for May is $X

Ending inventory = 2X

Cost of goods sold = Beginning inventory + Cost of goods manufactured - Ending inventory

450000 = X + 500000 - 2X

X = $50000

Finished goods ending inventory at May 31 = 2 x 50000
= $100000

2. Payment on current payables = Expenses - Depreciation - Expried prepayments + Ending balance of current payables - Beginning balance of current payables

= $360000 - 70000 - 35000 + 70000 - 60000

= $265000

3. Cash disbursement amount to be shown on Weaver's debt service budget

= Budgeted debt service cost

= $9000

4. Operating cycle = Days sales outstanding + Days Inventory outstanding

= 42 + 12

= 54 days

5. Decrease.

Since the denominator level of activity increases, the obviously the per unit cost decreases.

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