Exam 6: Planning, The Balanced Scorecard, and Budgeting

Valentine Company's actual sales for January through March,and budgeted sales for April through June of the current year are as follows: 10% of sales are cash and the rest are credit sales.Management estimates that 20% of credit sales will be collected in the month of sale,78% will be collected in the month following the sale,and the balance will not be collected.Prepare a cash receipts schedule for Valentine Company for the period April through June.

Use the following to answer questions Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below: Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory. -Hepburn's SG&A expenses,paid as incurred,are $100,000 per month plus 5 per cent of sales.What amount should Hepburn budget for SG&A for April?

Use the following to answer questions Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below: Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory. -How many units should Hepburn produce during April.

Logan Enterprises' unit production is budgeted for the first six months of its upcoming fiscal year as follows: Each unit of product requires 20 pounds of raw material that Logan purchases for $3.50 per pound.The company began the month of March with 13,160 pounds of raw material but wants its ending inventory of raw material to be 2% of the next month's production requirements beginning with the end of March. Logan pays for 20% of its purchases in the month of purchase,with the remainder paid the following month.Determine the amount of planned cash disbursements for purchases of raw materials for April,May and June.

Which of the following is part of conversion process planning?

Greenleaf Company's actual sales for April through June,and budgeted sales for July through September of the current year are as follows: All sales are on credit.Management estimates that 10% will be collected in the month of sale,55% will be collected in the month following the sale,and the balance will be collected the second month following the sale.Prepare a cash receipts schedule for Greenleaf Company for the period July through September.

A plan for the future expressed in quantitative terms is called a:

Onaga Corporation has the production budget described below.Each unit requires 4 hours of direct labor time at $15 per hour.Unit-related overhead is $20 per machine hour and each unit requires one-quarter of an hour.Batch-related overhead is $2,000 per batch with a batch-size of 500 units.Facility overhead,including depreciation of $150,000 is $820,000 per month. Required: Prepare Onaga's direct labor and manufacturing overhead budget for February.

Use the following to answer questions Minuteman Company's sales were budgeted for the first six months of its fiscal year as follows: All sales are on credit and management estimates that 55% will be collected in the month following the sale, with the remaining 45% collected the second month following the sale. -Cash collections during June are estimated at:

Use the following to answer questions Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below: Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory. -Each finished unit requires 5 units of raw material and raw material can be purchased at $3 per unit.Hepburn wants to have 15% of the next month's needs in ending raw materials inventory.The March 31,raw materials inventory is 40,000 units and Hepburn estimates May production at 58,000 units.What amount should Hepburn budget for raw material purchases for April?