Tutorial - Budgets

EXERCISE 9-26 (20 MINUTES)
1. TEJAS WINDOW TINT

EXPECTED CASH COLLECTIONS
AUGUST
Expected
Month Sales Percent Collections
June .................................................. $60,000 9% $ 5,400
July.................................................... 78,000 20% 15,600
August .............................................. 66,000 70% 46,200
Total .............................................. $67,200

EXPECTED CASH DISBURSEMENTS
AUGUST
July purchases to be paid in August ............................................................ $ 54,000
Less: 2% cash discount ................................................................................ 1,080
Net ............................................................................................................... $ 52,920
Cash disbursements for expenses ............................................................... 14,400
Total ............................................................................................................ $ 67,320

EXPECTED CASH BALANCE
AUGUST 31
Balance, August 1 .......................................................................................... $ 22,000
Add: Expected collections ............................................................................ 67,200
Less: Expected disbursements .................................................................... 67,320
Expected balance ...................................................................................... $ 21,880
EXERCISE 9-30 (25 MINUTES)
1. Direct professional labor budget for the month of June:
Office visits per month = 48,000/12 = 4,000
Professional services in June:
One-hour visits (20%  4,000  1 hr.) ................................... 800 hours

Half-hour visits (80%  4,000  1/2 hr.) ................................ 1,600 hours
Total direct professional labor .............................................. 2,400 hours
Hourly rate for dental associates ..........................................  $ 60
Total direct professional labor cost ..................................... $144,000
2. Cash collections during June:
May June
Half-hour visits (4,000  80%) ............................................... 3,200 3,200
Billing rate ..............................................................................  $40  $40
Total billings for half-hour visits........................................... $128,000 $128,000
One-hour visits (4,000  20%) ............................................... 800 800
Billing rate ..............................................................................  $70  $70
Total billings for one-hour visits........................................... $ 56,000 $ 56,000
Total billings during month ................................................... $184,000 $184,000
Percentage of month's billings collected
during June ........................................................................  10%  90%
Collections during June ........................................................ $ 18,400 $165,600
Total collections in June ($18,400 + $165,600) .................... $184,000
3. Overhead and administrative expense budget for June:
Patient registration and records (4,000 visits  $2.00 per visit).... $ 8,000
Other overhead and administrative expenses
(2,400 hours  $5.00 per hour) ................................................... 12,000
Total overhead and administrative expenses ................................. $20,000
PROBLEM 9-37 (25 MINUTES)
1. Sales budget for the 3 months ending June
April May June

Sales (in sets) ................................................... 10,000 12,000 15,000
Sales price per set ............................................  $50  $50  $50
Sales revenue ................................................... $500,000 $600,000 $750,000
2. Production budget (in sets) for the 3 months ending June
April May June

Sales .................................................................. 10,000 12,000 15,000
Add: Desired ending inventory ....................... 2,400 3,000 3,000
Total requirements ........................................... 12,400 15,000 18,000
Less: Projected beginning inventory .............. 2,000 2,400 3,000
Planned production .......................................... 10,400 12,600 15,000
3. Raw-material purchases for the 3 months ending June
April May June

Planned production (sets) .................................. 10,400 12,600 15,000
Raw material required per set
(board feet) ......................................................  10  10  10
Raw material required for production
(board feet) ...................................................... 104,000 126,000 150,000
Add: Desired ending inventory of raw
material (board feet)........................................ 12,600 15,000 16,000
Total requirements .............................................. 116,600 141,000 166,000
Less: Projected beginning inventory of
raw material (board feet) ................................ 10,400 12,600 15,000
Planned purchases of raw material
(board feet) ...................................................... 106,200 128,400 151,000
Cost per board foot .............................................  $.50  $.50  $.50
Planned purchases of raw material
(dollars) ............................................................ $ 53,100 $ 64,200 $ 75,500
4. Direct-labor budget for the 3 months ending June
April May June

Planned production (sets) .................................. 10,400 12,600 15,000
Direct-labor hours per set ...................................  1.5  1.5  1.5
Direct-labor hours required ................................ 15,600 18,900 22,500
Cost per hour .......................................................  $20  $20  $20
Planned direct-labor cost.................................... $312,000 $378,000 $450,000

Tutorial - Budgets

Uploaded by

Copyright:

Available Formats

Tutorial - Budgets

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tutorial - Budgets

Uploaded by

Copyright:

Available Formats

EXERCISE 9-26 (20 MINUTES)

1. TEJAS WINDOW TINT

2. TEJAS WINDOW TINT

3. TEJAS WINDOW TINT

1. Direct professional labor budget for the month of June:

Office visits per month = 48,000/12 = 4,000

Professional services in June:

One-hour visits (20%  4,000  1 hr.) ................................... 800 hours

2. Cash collections during June:

3. Overhead and administrative expense budget for June:

April May June

2. Production budget (in sets) for the 3 months ending June

April May June

3. Raw-material purchases for the 3 months ending June

April May June

4. Direct-labor budget for the 3 months ending June

April May June

You might also like