Parker, Inc has a cash balance of $20,000 on April 1
The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
Apr May Jun
Cash collections $24,000 $24,000 $24,000
Cash payments:
Purchases of direct materials 6,000 5,800 5,000
Operating expenses 3,500 5,000 4,600
There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of April.
A) $44,000
B) $34,500
C) $24,000
D) $38,000
B .B)
Apr May Jun
Beginning cash balance $20,000 $34,500 $47,700
Plus: Cash receipts 24,000 24,000 24,000
Cash available $44,000 $58,500 $71,700
Less: Cash payments
Purchases of direct materials 6,000 5,800 5,000
Operating expenses 3,500 5,000 4,600
Ending cash balance $34,500 $47,700 $62,100
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Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $16,000 was made on credit, 3/10, n/30. The journal entry to record this purchase is:
A.
| Merchandise Inventory | 16,000? | |
| Accounts Payable | 16,000? |
B.
| Merchandise Inventory | 15,520? | |
| Accounts Payable | 15,520? |
C.
| Purchases | 16,000? | |
| Accounts Payable | 16,000? |
D.
| Purchases | 15,520? | |
| Accounts Payable | 15,520? |
E.
| Accounts Payable | 16,000? | |
| Merchandise Inventory | 16,000? |
Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials$94Fixed costs per year: Direct labor$575,000Fixed manufacturing overhead$1,600,000Fixed selling and administrative expenses$748,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:
A. $215 per unit B. $117 per unit C. $181 per unit D. $94 per unit