1. Wateredge Corporation has budgeted a total of $361,800 in costs and expenses for the upcoming quarter. Of this amount, $45,000 represents depreciation expense and $7,300 represents the expiration of prepayments. Wateredge's current payables balance is $265,000 at the beginning of the quarter. Budgeted payments on current payables for the quarter amount to $370,000. The company's estimated current payables balance at the end of the quarter is:
2. On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:
Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.
August sales (actual) $40,000
September sales (actual) $50,000
October sales (estimated) $20,000
November sales (estimated) $70,000
December sales (estimated) $60,000
Budgeted collections from customers in October total:
3. Skelton Corporation had planned to produce 50,000 units of product during the first quarter of the current year. The company prepared the following budget on May 1:
During the first quarter, Carson produced 60,000 units and incurred total manufacturing costs of $180,000.
Refer to the information above. Which of the following amounts should not be included in Skelton's flexible budget at a 60,000-unit level?
A. Direct materials used, $43,200.
B. Direct labor, $54,000.
C. Variable overhead, $27,000.
D. Fixed manufacturing overhead, $70,200.
1. So, the AP account would increase by expenses that have to be paid and decreased by payments (given). Total expenses don't have to be paid since they include ...
A sentence explains the strategy and then the computation is shown.