1. Estimated unit sales for the first quarter of 2021 is 40,000 units and expected to increase 10% quarterly. Selling price fluctuates as follows: Quarter 1st 2nd 3rd 4th Unit price 64 66 62 62 Assume that of each quarter's sales: 20% are cash sales while the remaining 80% are credit sales. Shrek & Fiona Company estimates that 60% of credit sales are collected in the quarter of sale with 2% discount, 30% in the quarter of following sale, 9% in the second quarter following sale and 1% are considered as uncollectible. 2. Finished product requires 3 pounds of direct materials at P2.50 per pound. Finished good ending inventory is equal to 10% of the next quarter sales while raw materials ending inventory is equal to 10% of the next quarter production needs of materials. First quarter of 2022 sales is expected to be at 50,000 units while raw materials ending is at 13,500 pounds. (Units are rounded to the nearest ones.)
1. Estimated unit sales for the first quarter of 2021 is 40,000 units and expected to increase 10% quarterly. Selling price fluctuates as follows: Quarter 1st 2nd 3rd 4th Unit price 64 66 62 62 Assume that of each quarter's sales: 20% are cash sales while the remaining 80% are credit sales. Shrek & Fiona Company estimates that 60% of credit sales are collected in the quarter of sale with 2% discount, 30% in the quarter of following sale, 9% in the second quarter following sale and 1% are considered as uncollectible. 2. Finished product requires 3 pounds of direct materials at P2.50 per pound. Finished good ending inventory is equal to 10% of the next quarter sales while raw materials ending inventory is equal to 10% of the next quarter production needs of materials. First quarter of 2022 sales is expected to be at 50,000 units while raw materials ending is at 13,500 pounds. (Units are rounded to the nearest ones.)
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 5P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub