Use the following to answer questions 1-2:
Rogers Corporation is preparing its cash budget for July. The budgeted
beginning cash balance is $25,000. Budgeted cash receipts total $141,000
and budgeted cash disbursements total $139,000. The desired ending cash
balance is $30,000.
1. The excess (deficiency) of cash available over disbursements for
July is:
A) $23,000
B) $2,000
C) $166,000
D) $27,000
2.To attain its desired ending cash balance for July, the company
should borrow:
A) $30,000
B) $0
C) $3,000
D) $57,000
Use the following to answer questions 3-4:
Varughese Inc. is working on its cash budget for March. The budgeted
beginning cash balance is $33,000. Budgeted cash receipts total $182,000
and budgeted cash disbursements total $191,000. The desired ending cash
balance is $40,000.
3.The excess (deficiency) of cash available over disbursements for
March will be:
A) $215,000
B) $42,000
C) $24,000
D) ($9,000)
4.To attain its desired ending cash balance for March, the company
needs to borrow:
A) $40,000
B) $0
C) $16,000
D) $64,000
5.Zolezzi Inc. is preparing its cash budget for March. The budgeted
beginning cash balance is $42,000. Budgeted cash receipts total
$178,000 and budgeted cash disbursements total $175,000. The
desired ending cash balance is $50,000. The company can borrow
up to $160,000 at any time from a local bank, with interest not due
until the following month.
Required:
Prepare the company's cash budget for March in good form. Make
sure to indicate what borrowing, if any, would be needed to attain
the desired ending cash balance.
6.Betz Company's sales budget shows the following projections for next year:
Sales in units
First Quarter....................... 60,000
Second Quarter................... 80,000
Third Quarter..................... 45,000
Fourth Quarter.................... 55,000
Inventory at the beginning of the year was 18,000 units. The finished goods
inventory at the end of each quarter is to equal 30% of the next quarter's
budgeted unit sales. How many units should be produced during the first
quarter?
A) 24,000
B) 48,000
C) 66,000
D) 72,000
7.Garry Manufacturing Corporation's most recent production budget indicates the
following required production:
October November December
Required production (units)........... 210,000 175,000 110,000
Each unit of finished product requires 5 pounds of raw materials. The
company maintains raw materials inventory equal to 25% of the next month's
expected production needs. How many pounds of raw material should Garry
plan on purchasing for the month of November?
A) 1,006,250
B) 793,750
C) 1,012,500
D) 893,500
8.Depasquale Corporation is working on its direct labor budget for the next two
months. Each unit of output requires 0.41 direct labor-hours. The direct labor
rate is $8.10 per direct labor-hour. The production budget calls for producing
5,000 units in May and 5,400 units in June. If the direct labor work force is
fully adjusted to the total direct labor-hours needed each month, what would
be the total combined direct labor cost for the two months?
A) $16,605.00
B) $17,933.40
C) $17,269.20
D) $34,538.40
