month ' s expected unit sales. These goals were met at December 31, 2016.
Instructions
1. Prepare a production budget for January and February 2017.
2. Prepare a direct materials budget for January 2017.
Prepare a direct labor budget.
E9-15
Deitz Corporation is projecting a cash balance of $ 30,000 in its December 31, 2016, balance sheet. Deitz ' s schedule of expected collections from customers for the first quarter of 2017 shows total collections of $ 185,000. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $ 43,000. Other information gathered for the first quarter of 2017 is sale of equipment $ 3,000, direct labor $ 70,000, manufacturing overhead $ 35,000, selling and administrative expenses $ 45,000, and purchase of securities $ 14,000. Deitz wants to maintain a balance of at least $ 25,000 cash at the end of each quarter.
Instructions Prepare a cash budget for the first quarter. Prepare cash budget for a month.
P9-5A