How to answer this po? 5Test III= 40%A. Betz Company's sales budget shows the following projections for the year ending Dec. 31,2021:QuarterNo. of UnitsFirst60,00080,00045,00055,000SecondThirdFourthInventory at Dec. 31 of last year was budgeted at 18,000 units. The quantity of finishedgoods inventory at the end of each quarter should equal 30% of the next quarter's budgeted salesof units.REQUIRED:1. Prepare the production budget for the first and second quarters separately. Include a totalcolumn.B. The Charito Company is planning an overhead budget cost for May and June, 2021. Pastcost studies indicates that costs have followed behavior patterns as given below:Variable rate per hourP0.90Indirect materialsHeat, light & powerRepairs & maintenanceLubrication1.204.600.50In addition, management has estimated fixed factory overhead as follows per month:SupervisionP44,000Indirect labor36,000Heat, light and powerRepairs & maintenanceTaxes & insurance14,50017,2009,000During May and June, 2021, the company plans to manufacture 150,000 units ofproduct. Products are produced a the rate of 6 units per hour. Normal plant capacity is 15,000hours per month. REQUIRED:1. Prepare the factory overhead budget for May & June, 2021. Separate the fixed from thevariable cost components.2. Determine the unused normal capacity, if any.

A. Betz Company's sales budget shows the following projections for the year ending Dec. 31, 2021: No. of Units Quarter First 60,000 Second 80,000 Third 45,000 Fourth 55,000 Inventory at Dec. 31 of last year was budgeted at 18,000 units. The quantity of finished goods inventory at the end of each quarter should equal 30% of the next quarter's budgeted sales of units.

A. Betz Company's sales budget shows the following projections for the year ending Dec. 31, 2021: No. of Units Quarter First 60,000 Second 80,000 Third 45,000 Fourth 55,000 Inventory at Dec. 31 of last year was budgeted at 18,000 units. The quantity of finished goods inventory at the end of each quarter should equal 30% of the next quarter's budgeted sales of units.

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.1APR: Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget...

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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? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.
Forecast sales volume and sales budget Sentinel systems Inc. prepared the following sales budget for 20Y8: At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be increased 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 31, 201Y9
Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 20Y9, unit sales are expected to Follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" 10" the frame is expected to Increase to 17 and the unit selling price for the 12" 16" frame is expected to increase to 32, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31,. 20Y8, Over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 51. 20Y9.
CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses arc S2,700 a month. Income tax payments of 63,000 arc due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2014. b. Prepare monthly estimates of the required financing or excess funds that is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 130 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
Forecast sales volume and sales budget Sentinel Systems Inc. prepared the following sales budget for 20Y8: Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20 Y8 Unit Sales Unit Selling Total Product and Area Volume Price Sales Home Alert System: United States 1,700 200 340,000 Europe 580 200 116,000 Asia 450 200 90,000 Total 2,730 546,000 Business Alert System: United States 980 750 735,000 Europe 350 750 262,500 Asia 240 750 180,000 Total 1,570 1,177,500 Total revenue from sales 1,723,500 At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be decreased to 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format: Unit Sales, Year Ended 20Y8 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent Home Alert System: United States Europe Asia Business Alert System: United States Europe Asia 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9- Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Actual Units Percentage Increase (Decrease) 20Y9 Budgeted Units (rounded) 3. Prepare a sales budget for the year ending December 31, 20Y9.
Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?