1. Wallace Publishers Inc. collects 50% of its sales on account in the month of the sale and 50% in the month following the sale.
If sales on account are budgeted to be $423,000 for April and $376,000 for May, what are the budgeted cash receipts from sales on account for May?
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2. Direct Materials Purchases Budget
Marshall Publishers Inc. budgeted production of 66,000 diaries in 2014. Paper is required to produce a diary. Assume 110 square yards of paper are required for each diary. The estimated January 1, 2014, paper inventory is 508,000 square yards. The desired December 31, 2014, paper inventory is 399,000 square yards.
If paper costs $0.13 per square yard, determine the direct materials purchases budget for 2014. If required, round your final answer to the nearest dollar.
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3. Direct Labor Cost Budget
Lidell Publishers Inc. budgeted production of 48,000 diaries in 2014. Each diary requires assembly. Assume that 12 minutes are required to assemble each diary.
If assembly labor costs $10.50 per hour, determine the direct labor cost budget for 2014. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.
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