The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
has recently acquired a small manufacturing operation in that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways’ CFO, was sent to B.C. to oversee the plant’s budgeting process for the second quarter of 2017.
Jordan asked the various managers to collect the following information for preparing the second-quarter budget.
Sales
Unit sales for February 2017
99,000Unit sales for March 2017
111,000Expected unit sales for April 2017
119,000Expected unit sales for May 2017
124,000Expected unit sales for June 2017
129,000Expected unit sales for July 2017
144,000Expected unit sales for August 2017
169,000Average unit selling price
$12
Based on the experience from the home plant, Jordan has suggested that the B.C. plant keep 10% of the next month’s unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account; 50% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern from the previous year. The new plant has no bad debts.
Direct Materials
The combined quantity of direct materials (consisting of metal, plastic and rubber) used in each unit is 1.10 kg. Metal, plastic, and rubber together amount to $1.50 per kg. Inventory of combined direct material on March 31 consisted of 13,145 kg.
This plant likes to keep 10% of the materials needed for the next month in its ending inventory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase.
Accounts Payable on March 31 will total $124,800.
Direct Labour
Labour requires 15 minutes per unit for completion and is paid at an average rate of $12 per hour.
Manufacturing OverheadIndirect materials
$0.50
per labour hourIndirect labour
$0.50
per labour hourUtilities
$0.60
per labour hourMaintenance
$0.30
per labour hourSalaries
$44,800
per monthDepreciation
$14,400
per monthProperty taxes
$2,200
per monthInsurance
$1,050
per monthJanitorial
$2,400
per month
Selling and AdministrativeVariable selling and administrative cost per unit is $1.40. Advertising
$12,000a month Depreciation
$2,600a month Insurance
$1,200a month Other fixed costs
$3,500a month Salaries
$60,000a month
Other Information
The Cash balance on March 31 will be $115,000, but Waterways has decided it would like to maintain a cash balance of at least $500,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 2% interest. Borrowing is considered to be on the first day of the month and repayments are on the last day of the month. Assume interest is paid at the end of the quarter.
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more