Ex 7-1

Q1 Silver company
Schedule of expected cash collections
April May June
Feb sales $ 57,000.00
March sales $ 246,000.00 $ 61,500.00
April sales $ 112,500.00 $ 112,500.00 $ 67,500.00
May sales $ 162,500.00 $ 390,000.00
June sales $ 62,500.00
Total cash colections $ 415,500.00 $ 336,500.00 $ 520,000.00

Q2
Silver company
Accounts receivable as at June 30
May sales $ 97,500.00
June sales $ 187,500.00
Total accounts receivable $ 285,000.00

Ex 7-2
Down under products ltd
Production budget
April May June
Budgeted unit sales $ 70,000.00 $ 80,000.00 $ 110,000.00
Total needs $ 12,000.00 $ 16,500.00 $ 13,500.00
Required production units $ 82,000.00 $ 96,500.00 $ 123,500.00

Ex 7-3
First Sec Third
Required ending Inventory 22000 34000 24000
Add: Current usage 160000 220000 340000
Total material requirement 182000 254000 364000
Cost per unit $ 1.80 $ 1.80 $ 1.80
Material purchase budget (Shs) $ 327,600.00 $ 457,200.00 $ 655,200.00

Ex 7-4
Q1 Rordan corporation
Direct labor budget
1st Quarter 2nd quarter 3rd quarter
Required production in units 9600 7500 7800
Direct labor time/unit 0.65 0.65 0.65
total direct labor hours needed 6240 4875 5070
Direct labor cost/ hour $ 10.00 $ 10.00 $ 10.00
Total direct labor cost $ 62,400.00 $ 48,750.00 $ 50,700.00
Q2
Rordan corporation
Direct labor budget
1st Quarter 2nd quarter 3rd quarter
Required production in units 9600 7500 7800
Direct labor time/unit 0.65 0.65 0.65
total direct labor hours needed 6240 4875 5070
Direct labor cost/ hour $ 15.00 $ 10.00 $ 10.00
Total direct labor cost $ 93,600.00 $ 48,750.00 $ 50,700.00

Ex 7-5
Q1 Yuvwell corporation
Manufacturing overhead budget
Quarter 1 2 3
Variable manufacturing OH $ 29,250.00 $ 28,275.00 $ 29,250.00
Fixed manufacturing OH $ 58,000.00 $ 58,000.00 $ 58,000.00
Total manufacturing OH $ 87,250.00 $ 86,275.00 $ 87,250.00
Less depreciation $ 14,500.00 $ 14,500.00 $ 14,500.00
Cash disbursements $ 72,750.00 $ 71,775.00 $ 72,750.00

Q2
Total budgeted OH for the year $ 346,075.00
Budgeted direct labor hours for year 35100
Predetermined OH rate per hour $ 9.86
Total
$ 57,000.00
$ 307,500.00
$ 292,500.00
$ 552,500.00
$ 62,500.00
$ 1,272,000.00

Quarter
$ 260,000.00
$ 42,000.00
$ 302,000.00

Fourth Total
32000 112000
240000 960000
272000 1072000
$ 1.80 $ 7.20
$ 489,600.00 $ 1,929,600.00

4th quarter
10100
0.65
6565
$ 10.00
$ 65,650.00
4th quarter
10100
0.65
6565
$ 15.00
$ 98,475.00

4 Year
$ 27,300.00 $ 114,075.00
$ 58,000.00 $ 232,000.00
$ 85,300.00 $ 346,075.00
$ 14,500.00 $ 58,000.00
$ 70,800.00 $ 288,075.00
Ex 7-6
Weller company
Selling & administrative expense budget
Quarter 1 2 3 4
Fixed selling & admin expenses
Advertising $ 13,000.00 $ 13,000.00 $ 13,000.00 $ 13,000.00
Executive salaries $ 47,000.00 $ 47,000.00 $ 47,000.00 $ 47,000.00
Depreciation $ 27,000.00 $ 27,000.00 $ 27,000.00 $ 27,000.00
Insurance $ 4,000.00 $ 4,000.00
Property taxes $ 6,800.00
Total fixed costs $ 91,000.00 $ 93,800.00 $ 91,000.00 $ 87,000.00
Total selling & admin expenses $ 756,000.00 $ 78,300.00 $ 56,700.00 $ 702,000.00
Cash disbursements $ 847,000.00 $ 172,100.00 $ 147,700.00 $ 789,000.00
Year

$ 52,000.00
$ 188,000.00
$ 108,000.00
$ 8,000.00
$ 6,800.00
$ 362,800.00
$ 1,593,000.00
$ 1,955,800.00