Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1. Collections from customers: January $101,000; February $ 158,000 Payments to suppliers: January $61,000; February $82,000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 2. 3. 4. 5. 6. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash.
Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1. Collections from customers: January $101,000; February $ 158,000 Payments to suppliers: January $61,000; February $82,000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 2. 3. 4. 5. 6. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two
months of 2022 are as follows:
1. Collections from customers: January $101,000; February $158,000
Payments to suppliers: January $61,000; February $82,000
Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred.
Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All
other overhead costs are paid as incurred.
2.
3.
4.
5.
6.
Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They
are paid as incurred.
Sales of marketable securities in January are expected to realize $9,000 in cash.
Transcribed Image Text:WILDHORSE COMPANY
Cash Budget
For the Two Months Ending February 28, 2022
Month
Jan
tA
Feb
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