Explore BrainMass

Cost Accounting/Cash Accounting Problems

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

I need help with the following 2 problems...

1)
The following direct labor information pertains to the manufacture of product Glu:

Time required to make one unit 2 direct labor-hours
Number of direct labor workers 50 workers
Number of productive hours per week, per worker 40 hours
Weekly wages per worker \$500
Workers' benefits treated as direct labor costs 20% of wages

What is the standard direct labor cost per unit of product Glu?

A) \$30
B) \$24
C) \$15
D) \$12

2)
Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data for the company:

January February March April
Total sales \$50,000 \$60,000 \$40,000 \$30,000

Total cash receipts in April are expected to be:

A) \$24,640
B) \$35,200
C) \$31,560
D) \$33,640

Solution Summary

1)
The following direct labor information pertains to the manufacture of product Glu:

Time required to make one unit 2 direct labor-hours
Number of direct labor workers 50 workers
Number of productive hours per week, per worker 40 hours
Weekly wages per worker \$500
Workers' benefits treated as direct labor costs 20% of wages

What is the standard direct labor cost per unit of product Glu?

A) \$30
B) \$24
C) \$15
D) \$12

2)
Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data for the company:

January February March April
Total sales \$50,000 \$60,000 \$40,000 \$30,000

Total cash receipts in April are expected to be:

A) \$24,640
B) \$35,200
C) \$31,560
D) \$33,640

\$2.19