ACC 206 Week 4 Chapter 6 Exercise 4 Production and cash-outlay computations http://www.seetutorials.com/products/acc-206week-4-chapter-6-exercise-4-production-andcash-outlay-computations.html Chapter 6 Exercise 4 4. 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.
Determine the number of units of product K to be manufactured in May.
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 $? $? $?