ACG2071 Final Exam Part 1 Document Preview: Problem 1. CrystalCompanymanufacturestwomodelsofmicrocas

ACG2071 Final Exam Part 1

Document Preview:



Problem
1.
CrystalCompanymanufacturestwomodelsofmicrocassetterecorders,VCH andMTV.Based onthe followingproductiondataforAprilofthecurrentyear,prepareaproductionbudgetforApril.
VCH2,800
6,900
MTV4,200
5,250
Estimatedinventory(units),April1Desiredinventory(units),April30Expectedsalesvolume (units):Easternzone
MidwestzoneWesternzone
12,960
19,800
9,840
12,500
19,000
14,500
2.
TheSvelteJeansCompanyproducestwodifferenttypesofjeans.Oneiscalledthe”SimpleLife”andtheotheriscalledthe”FancyLife”.Thecompanysalesbudgetestimatesthat350,000oftheSimpleLifeJeansand200,000oftheFancyLifewillbe sold during20xx.TheProductionBudgetrequires353,500unitsofSimpleLifejeansand196,000FancyLifejeansbemanufactured.The SimpleLifejeansrequire3yardsofdenimmaterial,azipper,and25yardsofthread.TheFancyLifejeansrequire4.5yardsofdenimmaterial,azipper,and40yardsofthread.Eachyardofdenimmaterialcosts$3.25,thezippercosts $.75each,andthethreadis$.01peryard.Thereisenoughmaterialtomake2,000jeansofeachtypeatthebeginningoftheyear. Thedesiredamountofmaterialsleftinendinginventoryistohaveenoughtomanufacture3,500jeansofeachtype.PrepareaDirectMaterialsPurchasesBudget.
3.
The treasurer of Systems Company has accumulated thefollowingbudgetinformationforthefirsttwo months ofthecomingyear:
March
$450,000290,000
41,400
250,000
April
$520,000350,000
46,400
Sales.Manufacturingcosts
SellingandadministrativeexpensesCapitaladditions
The companyexpectstosellabout35%ofitsmerchandiseforcash.Ofsalesonaccount,80%areexpectedtobecollectedinfull inthemonthofthesaleandtheremainderinthemonthfollowingthesale.One-fourthofthemanufacturingcostsareexpectedtobepaidinthemonthinwhichtheyareincurredandtheother three-fourthsinthefollowingmonth.Depreciation,insurance,andproperty taxesrepresent$6,400oftheprobable monthlysellingandadministrativeexpenses.InsuranceispaidinFebruaryanda$40,000installmentonincometaxesisexpectedtobepaidinApril.Ofthe remainderofthesellingandadministrativeexpenses,one-half…

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