Exercise 1: Schedule of Expected Cash Collection
Exercise 1: Schedule of Expected Cash Collection
Exercise 1: Schedule of Expected Cash Collection
Requirement 2
Accounts Receivable as of September
Sales from August 90,000
Sales from September 350,000
50,000 400,000
Total Accounts Receivable 490,000
Strategic Cost
July Semptember Quarter
Budgeted sale 30,000 45,000 60,000 135,000
Add: Ending inventory 4,500 6,000 5,000 5,000
Total needs 34,500 51,000 65,000 140,000
Less: Beg. Inventory (3,000) (4,500) (6,000) (3,000)
Required Production 31,500 46,500 59,000 137,000
Strategic Cost
Year 2 Year 3
First Second Third Fourth First
Calculator produced 60,000 90,000 150,000 100,000 80,000
Multiply: Small chips per calculator
3 3 3 3 3
Total production need- Chips 180,000 270,000 450,000 300,000 240,000
Year 2 Year 3
First Second Third Fourth First
Production need- Chips 180,000 270,000 450,000 300,000 1,200,000
Add: Ending inventory- Chips 54,000 90,000 60,000 48,000 48,000
Total need- Chips 234,000 360,000 510,000 348,000 1,248,000
Less: Beginning inventory- Chips (36,000) (54,000) (90,000) (60,000) (36,000)
Required purchses- Chips 198,000 306,000 420,000 288,000 1,212,000
Multiply: Cost per Chips 200 200 200 200 200
Cost of Purchases 39,600,000 61,200,000 84,000,000 57,600,000 242,400,000
Strategic Cost
Requirement 2
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Units to be produced 5,000 4,400 4,500 4,900 18,800
Direct Labor-hours 0.40 0.40 0.40 0.40 0.40
Total direct Labor Hours Needed 2,000 1,760 1,800 1,960 7,520
Regular Hours Paid 1,800 1,800 1,800 1,800 7,200
Overtime Hours Paid 200 - - 160 360
Requirement 2
Total Manufacturing Overhead 175,700
Total direct labor-hours for a year 20,400
Manufacturing Overhead rate for the year 8.61
Strategic Cost
1st Quarter 3rd Quarter 4th Quarter Year
Budgeted unit sale 12,000 14,000 11,000 10,000 47,000
Variable selling and administrative expense per unit 2.75 2.75 2.75 2.75 2.75
Variable expense 33,000 38,500 30,250 27,500 129,250
Financing:
Borrowings 8 20 - - 28
Repayments (including
interest) - - (25) (7) (32)
Total financing 8 20 (25) (7) (4)
Cash balance, ending 5 5 5 6 6