Anderson Foods produces spécialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Total sales Number of jars sold revenue 1st quarter....S 182,000 150,000 2nd quarter... S 210,000 182,500 3rd quarter... $ 257,000 213,000 4th quarter...S 197,000 162.000 Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Anderson Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Unite to produce im in! Anderson anticipates selling 223,000 jars with total sales revenue of $267,000 in the first quarter of the year following the year given in the preceding table. Anderson has a policy that the ending inventory of jars must be 25% of the following quarter's sales. Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total

Anderson Foods produces spécialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Total sales Number of jars sold revenue 1st quarter....S 182,000 150,000 2nd quarter... S 210,000 182,500 3rd quarter... $ 257,000 213,000 4th quarter...S 197,000 162.000 Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Anderson Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Unite to produce im in! Anderson anticipates selling 223,000 jars with total sales revenue of $267,000 in the first quarter of the year following the year given in the preceding table. Anderson has a policy that the ending inventory of jars must be 25% of the following quarter's sales. Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total

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 16E

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Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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