Compute the may cash outlay for purchases of raw material

Assignment Help Cost Accounting
Reference no: EM13334560

Production and cash-outlay computations
RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow.


1-May

31-May

Product K (Units)

         55,000

       60,000

Rate Materials A (Units)

         40,000

       37,000

Each unit of raw material A costs $8; RPR pays for all purchases in the month of acquisition. Invoices that account for 80% of the cost of materials acquired will be paid within 10 days of receipt, entitling the company to a 2% cash discount.

a. Determine the number of units of product K to be manufactured in May.

b. Compute the May cash outlay for purchases of raw material A.


July

August

September

Beginning cash balance

$10,000

$ ?

$ ?

Add: Cash receipts

50,000

63,000

71,000

Deduct: Cash payments

-64,000

-58,000

-64,000

Cash excess (deficiency) before financing

($4,000)

$ ?

$ ?

Financing




Borrowing to maintain minimum balance

?

?

?

Principal repayment

?

?

?

Interest payment

?

?

?

Ending cash balance

$ ?

$ ?

$ ?

Reference no: EM13334560

Questions Cloud

To what extent does conditioned hypereating affect : To what extent does conditioned hypereating affect you in your own personal lives?
Determine the initial kinetic energy of the ball : A ball with a mass of .100 kg is on a spring that is 10.0 m above the ground with a spring constant of 543 N/m and has been compressed .125 m. Determine the initial kinetic energy of the ball
Traditional ultramares rule-accounting principles : What are the consequences of Perkin’s failure to follow generally accepted accounting principles? Under the traditional Ultramares rule, can Tucker recover damages from Perkins? Please Explain.
Compute the payback statistic for project x : Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 5 years.
Compute the may cash outlay for purchases of raw material : Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.
Find the total magnetic flux through the plastic : An open plastic soda bottle with an opening diameter of 2.2cm is placed on a table. find the total magnetic flux through the plastic of the soda bottle
Discussed and implemented the mvc design pattern : Find another design pattern which could be used for web based development and write a synopsis on it, pointing out whether it would be applicable for use within your project or not. Comment as applicable on design patterns that other class members..
Evaluate the heat removal rate needed to dry ice : Calculate the heat removal rate (kW) needed to produce 500 kg/h of dry ice at -78.4°C from a feed stream of CO2 (v) at 20°C.
Determine the band gap energy of the semiconductor : Under ambient conditions (T=300K ), the intrinsic electron concentration of silicon (Si) is ni=1.45*10^10cm^-3. Calculate the band gap energy of the semiconductor

Reviews

Write a Review

Cost Accounting Questions & Answers

  Value of levered firm

If value of a levered firm is $13,000,000, and value of corresponding unlevered firm is $12,000,000, find out the present value of financial distress costs, if the firm has $5,000,000 of debt outstanding and is in the 40 percent tax bracket.

  Make a convincing argument that information

Respond to assertions by the IRS and counter those assertions with your own and make a convincing argument that information/documentation your client possesses justifies and supports valuation claim.

  Evaluate dows basic and diluted earnings per share

Evaluate Dow's basic and diluted earnings per share

  Determine contribution margin per unit for each type of vase

Factoring resource constraints into product mix decisions Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available. Small Vase Large Vase Sale price $60 $100 Variable costs $35 $60 Machine hours re..

  Determine diluted earnings per share

Dunbar Company had 530,000shares of common stock outstanding during the year 2015. In addition, at December 31, 2013, 76,000 shares were issuable upon exercise of executive stock options which require a $42 cash payment upon exercise (options gran..

  How revenue sources are planned and budgeted in nonprofits

What are some typical key assumptions that must be made in the "revenue sources" budgeting process of nonprofits, and what could cause these assumptions to be invalid?

  Compute trend percentages for each item for 2007

Compute the rate of return on net sales for 2008 through 2010, rounding to three decimal places. In this industry, rates of 6% are average, rates above 8% are considered good and rates above 10% are viewed as outstanding.

  Statement of cash flows using the indirect method

statement of cash flows using the indirect method.

  What is the value of these bonds

What is the value of these bonds when the required interest rate is 5 percent, 10 percent, and 15 perrcent and why is the price of Bond L more sensitive to interest rate changes than the price of Bond S?

  Determine the quick ratio for the end of the year

Determine the quick ratio for the end of the year and the discount rate used by the bank in computing the proceeds

  Compute dows diluted and basic earnings per share

Compute Dow's diluted and basic earnings per share

  Advantages and disadvantages of forming the business

Provide a summary to the partners, outlining the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd