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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
the budget committee of Suppar Company collects the following
data for its San Miguel Store in preparing budgeted income
statements for May and June 2017.
1. Sales for May are expected to be $800,000. Sales in June
and July are expected to be 5% higher than the preceding
month.