question 5 1. Platinum Trophy, Inc. projects sales of 45,000 brass plaques for 201X. The estimated January 1,201X inventory is 3,000 units and the desired December 31, 201X inventory is 5,000 units. What isthe budgeted production (in units) for 201X?2. Platinum Trophy needs brass sheets to produce their brass plaques. Assume 96 square inches ofbrash sheet are required for each brass plaque. The estimated January 1, 201X, brass sheet inventoryis 240,000 square inches. The desired December 31, 201X brass sheet inventory is 200,000 squareinches. Platinum Trophy pays $0.12 per square inch. Using the budgeted production from thequestion 1, determine the direct materials purchases budget for 201X.3. In addition to brass sheets, each plaque needs engraving. The amazing engraving artists on staffspend 12 minutes per plaque. Each engraving artist earns $11.00 per hour. Based on the budgetedproduction from question 1, determine the direct labor cost budget for 201X.4. Assume the estimated finished goods inventory on January 1, 201X was $54,000. Desired finishedgoods inventory for December 31, 201X is $50,000. Assume the estimated WIP inventory onJanuary 1, 201X was $47,000 while the desired WIP inventory on December 31, 201X is $49,000.After careful consideration and calculation, Platinum Trophy determines the Factory Overheadbudget for 201X is $126,000. Based on the Direct Materials purchases budget and the direct laborcost budgets from above, create a Cost of Goods Sold budget for Platinum Trophy.5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the monthfollowing the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April,what are the budgeted cash receipts from sales on account for April?

5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?

5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 3CE: Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls....

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Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKicks policy is that 20 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: 1. Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. 2. What if FlashKick decreased the ending inventory percentage to 15 percent of the next months production needs? What impact would that have on the direct materials purchases budgets prepared in Requirement 1? Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?