acg2071 final exam part 1 494407

Problem 1. CrystalCompanymanufacturestwomodelsofmicrocassetterecorders,VCH andMTV.Based onthe followingproductiondataforAprilofthecurrentyear,prepareaproductionbudgetforApril. VCH2,800 6,900 MTV4,200 5,250 Estimatedinventory(units),April1Desiredinventory(units),April30Expectedsalesvolume (units):Easternzone MidwestzoneWesternzone 12,960 19,800 9,840 12,500 19,000 14,500 2. TheSvelteJeansCompanyproducestwodifferenttypesofjeans.Oneiscalledthe”SimpleLife”andtheotheriscalledthe”FancyLife”.Thecompanysalesbudgetestimatesthat350,000oftheSimpleLifeJeansand200,000oftheFancyLifewillbe sold during20xx.TheProductionBudgetrequires353,500unitsofSimpleLifejeansand196,000FancyLifejeansbemanufactured.The SimpleLifejeansrequire3yardsofdenimmaterial,azipper,and25yardsofthread.TheFancyLifejeansrequire4.5yardsofdenimmaterial,azipper,and40yardsofthread.Eachyardofdenimmaterialcosts$3.25,thezippercosts $.75each,andthethreadis$.01peryard.Thereisenoughmaterialtomake2,000jeansofeachtypeatthebeginningoftheyear. Thedesiredamountofmaterialsleftinendinginventoryistohaveenoughtomanufacture3,500jeansofeachtype.PrepareaDirectMaterialsPurchasesBudget. 3. The treasurer of Systems Company has accumulated thefollowingbudgetinformationforthefirsttwo months ofthecomingyear: March $450,000290,000 41,400 250,000 April $520,000350,000 46,400 Sales.Manufacturingcosts SellingandadministrativeexpensesCapitaladditions The companyexpectstosellabout35%ofitsmerchandiseforcash.Ofsalesonaccount,80%areexpectedtobecollectedinfull inthemonthofthesaleandtheremainderinthemonthfollowingthesale.One-fourthofthemanufacturingcostsareexpectedtobepaidinthemonthinwhichtheyareincurredandtheother three-fourthsinthefollowingmonth.Depreciation,insurance,andproperty taxesrepresent$6,400oftheprobable monthlysellingandadministrativeexpenses.InsuranceispaidinFebruaryanda$40,000installmentonincometaxesisexpectedtobepaidinApril.Ofthe remainderofthesellingandadministrativeexpenses,one-half…