Question 1:Sweet Potato Inc. requires a cash budget for the month of december 2014. The following information is available for preparation of the cash budget.-The cash balance on December 1 is $11,000-Sales for November and December are $55,000 and $60,000 respectively. Cash collections on sales are 40% of the month of sale and 60% in the month after the sale-General expenses budgeted for December 2014 are $18,000 (depreciation represents $2000 of this amount)-Inventory purchases will total $30,000 in November and $50,000 in December. The company pays for 40% of its inventory purchases in the month of purchase and 60% in the month after purchase-The company will pay $5000 in cash for desks in December 2014-Salaries and wages not included in general expenses above are budgeted at $8,000-The company plans to issue and pay salary bonuses in December 2014 in the amount of $6,000-The company maintains a minimum ending cash balance of $10,000 and can borrow from the bank in multiples of $100 all loans are repaid after 60 daysPrepare a cash budget for Sweet Potato Inc. for the month of December 2014 and explain all steps taken in order to solve this questionQuestion 2:Stuffed Turkey Inc. whose fiscal year begins on November 1 has just completed a record breaking year producing and selling turkeys. Its inventory account balances on October 31 of this year were:Materials Inventory: $83,000Work In Process Inventory: $2,700,000Finished Goods Inventory: $1,800,200At the beginning of the year the inventory account balances were:Materials Inventory: $56,200Work In Process Inventory: $3,300,000Finished Goods Inventory: $1,596,400During the fiscal year the companys purchases of direct materials totaled $750,000 direct labor hours totaled 140,000 and the average labor rate was $11 per hour. The following overage costs were incurred during the year-Depreciation/plant and equipment $85,600-Indirect labor $207,300-Property Tax/ Plant and equipment:$96,000-Plant maintenance: $8,000Small Tools: $42,400Utilities: $96,500Employee Benefits: $176,100Prepare a statement of cost of goods manufactured for the year ended October 31 2014 and explain each step and how to prepare
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