Acct301

EXERCISE 7-13 PINK MARTINI CORPORATION
Cash Budget
For the Quarter Ended March 31, 2012
Beginning cash balance $31,000
Add: Receipts Collections from customers 180,000 Sale of equipment 3,500 Total receipts $183,500
Total available cash $214,500
Less: Disbursements Direct materials 41,000 Direct labor 70,000 Manufacturing overhead 35,000 Selling and administrative expense 45,000 Purchase of securities 12,000 Total disbursements $203,000
Excess of available cash over disbursements 11,500
Financing
Borrowings 13,500 Repayments
Ending cash balance $25,000

PROBLEM 7-1A

DANNER FARM SUPPLY COMPANY
Sales Budget
6 Months Ending June 30, 2012 Quarter Six Months 1 2 Expected unit sales 28,000 42,000 70,000
Unit selling price 60 60 60
Total sales $1,680,000 $2,520,000 $4,200,000 DANNER FARM SUPPLY COMPANY
Production Budget
6 Months Ending June 30, 2012 Quarter Six Months 1 2 Expected unit sales 28,000 42,000
Add: Desired ending finished goods 12000 18000
Total required units 40,000 60,000
Less: Beginning finished goods units 8,000 12,000
Required production units 32,000 48,000 80,000 DANNER FARM SUPPLY COMPANY Direct Materials Budget—Gumm
6 Months Ending June 30, 2012 Quarter Six Months 1 2 Units to be produced 32,000 48,000
Direct materials per unit 4 4
Total pounds needed for production 128000 192000