Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle.The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part.Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,100 nozzles in stock,although the latest estimate for August production indicates a requirement for only 15,600 nozzles. Total uses of the nozzle areexpected to be 15,300 in September and 16,140 in October.Nozzles are purchased at a wholesale price of $11. Eliot pays 25 percent of the purchase price in cash in the month when the parts aredelivered. The remaining 75 percent is paid in the following month. Eliot purchased 24,000 parts in July.Required:a. Estimate purchases of the nozzle (in units) for August and September.b. Estimate the cash disbursements for nozzles in August and September.Complete this question by entering your answers in the tabs below.Required A Required BEstimate purchases of the nozzle (in units) for August and September.AugustMerchandise to be purchased in units< Required ASeptemberRequired B >

Required A: Estimate Purchases of Nozzles (in Units)August:Beginning Inventory: 17,100…

Answered: Eliot Sprinkler Systems produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Painter's Hardware purchased 8,200 gallons of paint in March. The store had 3,100 gallons on hand at the beginning of March, and expects to have 2,600 gallons on hand at the end of March. What is the budgeted number of gallons to be sold during March? Round your final answer to the nearest unit. Do not include $ sign or commas in your final answer.
Rishi Sunak Manufacturing Pte. Ltd. is preparing its budget for next year. The company estimates that it will be making the following raw materials purchases in the last five months of 2021: $200,000 in August, $220,000 in September, $250,000 in October, $280,000 in November and $240,000 in December. The company anticipates that it will pay 55% of what is owed one month after the month of purchase, 30% of what is owed two months after the month of purchase and the remaining 15% three months after the month of purchase. What figure will be presented in the company’s cash budget for payments for raw materials purchases in December 2021? $233,500 $253,500 $262,000 $403,500
Lily Company expects to have a cash balance of $49,500 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $93,500, February $165,000. Payments for direct materials: January $55,000, February $82,500. Direct labor: January $33,000, February $49,500. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,100, February $27,500. These costs include depreciation of $1,650 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16,500, February $22,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,200 in cash. Lily Company has a line of credit at a local bank that enables it to borrow up to $27,500. The company wants to maintain a minimum monthly cash balance of $22,000. Prepare a cash budget for January and February. LILY COMPANY Cash Budget…
Alexa Products produces coat racks in Calgary, Canada. The accountant has presented you the following budgeted data for the second quarter of 2021. Sales are forecasted to be 80,000 units at a price per unit of $32. The budgeted beginning and ending finished goods inventories are 5,000 and 15,000 units respectively. It is estimated that each rack requires four kilograms of metal at a budgeted price of $4 per kg. The beginning raw materials inventory is estimated as 3,200 kilograms. Alexa Products wants to keep ending raw materials inventory of 5,400 due to fluctuations in demand. Each rack requires 1.5 hours of direct labour and the standard hourly pay rate is $20. Required: (please show all steps of your computation in proper format) 4. Prepare a direct labour budget for the second quarter of 2021. 5. Mr Peter started a business by acquiring a medium sized manufacturing firm. He hired you to work in the accounting department. You are in charge of providing management accounting…
Crane Company expects to have a cash balance of $36,000 on January 1,2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $68,000, February $120,000.Payments for direct materials: January $40,000, February $60,000.Direct labor: January $24,000, February $36,000. Wages are paid in the month they are incurred.Manufacturing overhead: January $16,800, February $20,000. These costs include depreciation of $1,200 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $12,000, February $16,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,600 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $20,000. The company wants to maintain a minimum monthly cash balance of $16,000. Prepare a cash budget for January and February. ReceiptsCollections from…
Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH ● ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours Actual results for January: ● 2.0 machine hours 2.0 machine hours. Show Transcribed Text Show Transcribed Text 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. Fixed-MOH price variance $ $17.00 per gallon…
Jim Bowden, owner of Bowden Brake Service, is planning to expand his six-year- old brake service to include tune-ups and tire services. Based on budget estimates for the upcoming year, Jim expects net sales to be $982,277 with a cost of goods sold of $466,781 and total operating expenses of $248,480. From the budget he created, Jim computes fixed expenses to be $177,699. He used this to separate the total operating expenses into fixed and variable expenses. Jim is concerned that the new cost structure may damage his ability to produce a profit and he wants to perform a breakeven analysis for the upcoming year to gain insight. Compute the breakeven point for Jim's brake service.
Clarks Company's master budget includes $360,000 for equipment depreciation. The master budget was prepared for an annual volume of 120,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September Clark performed 9,000 chargeable hours and recorded $28,000 of depreciation. Determine the flexible budget amount for equipment depreciation in September?
Prepare the direct material budgets for the upcoming five years. The budgets should also include a schedule of expected cash disbursements for purchase of materials, by year and in total. Make your assumptions about the safety stock of materials and the timing of payments clear. Total Raw materials $23 ( Distilled water $2, Rose oil $2, Sandalwood $2, Cedar $2, Musk $8, vanilla $5, Ethyl $1, Methyl $1) Box $10 Bottle $20 Labour $7
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are expected to be 14,700 in September and 15,540 in October. Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.
Joy is a company that manufactures a product called”Gladys”. The company is contemplating engaging an MBA graduate to manage its budgets. The following information is unveiled to you for the six months period ended 31st December 2021: July August September October November December Sales(Units) 480 520 640 750 700 600 Production(Units) 550 500 700 720 715 510 Additional data: (i) The selling price per unit is set at K13,800 per unit for July, August and September and K14,900 for October, November and December. (ii) The sales policy is to receive 65% of the sales value in the month of sale and the balance the month after sale. (iii) Purchases for production are used in the month of purchase and paid for one month after purchase. The cost per unit has been set at K8,300 for July and August,K8,700 for September and October and…
Sandhill's Recording Studio rents studio time to musicians in two-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1.400 sessions. The company has invested $2,073,750 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as -follows: Direct materials (tapes, CDs, etc.) Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Determine the total cost per session. Total cost per session Per Session $25 380 60 35 Total $1,358,000 707,000

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