Cash Disbursements for Materials Essay Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Cash Disbursements for Materials Essay Assignment
Okay Co., a new startup business, is preparing their budget for the first quarter 2022 ending March 31.
Budgeted sales of the company’s only product for the next five months is:
January 8,700 units February 6,200 units March 8,100 units April 5,500 units May 6,500 units The selling price is $56 per unit.
Prepare the following elements of the master budget for this problem: (150 points)
Sales budget (a. with a schedule of expected cash collections).
Production budget.
Direct materials budget (b. with a schedule of expected cash disbursements for materials).
Direct labor budget.
Manufacturing overhead budget.
Ending finished goods inventory budget.
Selling and administrative expense budget.
Cash budget.
Budgeted income statement.
Budgeted balance sheet. (beginning and ending balance sheet)
SCHEDULE OF EXPECTED CASH COLLECTIONS
All Sales are on account.
The company collects 65% of credit sales in the month of the sale and 35% of credit sales in the following month.
The accounts receivable balance on January 1 was $0.
PRODUCTION BUDGET
The company desires to have inventory on hand at the end of each month equal to 25% of the following month’s budgeted unit sales.
On December 31, 0 units were on hand.
DIRECT MATERIALS BUDGET
6.0 pounds of material are required per unit of product.
Management desires to have materials on hand at the end of each month equal to 15% of the following month’s production needs.
The beginning materials inventory was 0 pounds.
The material costs $.55 per pound.
SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL
60% of a month’s purchases are paid for in the month of purchase; 40% is paid for in the following month.
No discounts are given for early payment.
The accounts payable balance on December 31 was $0.
DIRECT LABOR BUDGET
Each unit produced requires .65 hours of direct labor.
Each hour of direct labor costs the company $15.00.
Management fully adjusts the workforce to the workload each month.
MANUFACTURING OVERHEAD BUDGET
Variable manufacturing overhead is $3.30 per direct labor-hour.
Fixed manufacturing overhead is $92,000 per month. This includes $16,000 in depreciation, which is not a cash outflow.
ENDING FINISHED GOODS INVENTORY BUDGET
Okay, a new startup business, uses absorption costing in its budgeted income statement and balance sheet.
Manufacturing overhead is applied to units of product on the basis of direct labor-hours.
The company has no work in process inventories.
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
Variable selling and administrative expenses are $1.20 per unit sold.
Fixed selling and administrative expenses are $63,000 per month and include $9,000 in depreciation.
CASH BUDGET
A line of credit is available at a local bank.
All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month. Borrowing occurs in increments of $1,000.
Any interest incurred during the first quarter will be paid at the end of the quarter. The interest rate is 18% per year.
Okay, a new startup business, desires a cash balance of at least $30,000 at the end of each month. The cash balance at the beginning of January was $18,000.
Cash dividends of $35,000 are to be paid to stockholders in February.
Equipment purchases of $154,000 are scheduled for January and $125,000 for February. This equipment will be installed and tested during the first quarter and will not become operational until April, when depreciation charges will commence.
Question 1: Assume that Okay expects to produce and sell 95,000 units during the current year. One of Okay’s sales representatives has found a new customer that is willing to buy 9,000 additional units for a price of $44 per unit. If they accept the customer’s offer, it will decrease unit sales to regular customers by 5,000 units. Should they accept this special order? Show all work/calculations to justify your decision
Question 2: Assume that Okay expects to produce and sell 22,000 units during the current quarter. A supplier has offered to manufacture and deliver 22,000 units for a price of $28 per unit. Should Okay accept this offer? How much will profit’s increase or decrease? Show all work/calculations to justify your decision.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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