Budgeted sales for the first six months are listed below: JANUARY FEBRUARY MARCH APRIL MAY 8,000 JUNE 4,000 UNITS: 6,000 7,000 7,000 5,000 a policy of maintaining an inventory equal to 40 percent of the next month's budgeted sales. If plans to produce 6,000 units in June, what are budgeted sales for July? a. 3,600 units b. 1,000 units C. c. 9,000 units d. 8,000 units
Q: Budgeted sales for January $200,000 and February $100,000. Collections for sales are 60% in…
A: Budgeted cash collection: =Beginning accounts receivable+ (Budgeted level of sales *Collections for…
Q: ABC Company’s budgeted sales for June, July, and August are 12,600, 16,600, and 14,600 units,…
A: Desired ending inventory = 25% of the next month’s budgeted unit sales Desired ending inventory…
Q: month following sal
A: Given as, Sales April $120,000 May $100,000 June $110,000
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A: SCHEDULE OF EXPECTED CASH COLLECTIONS April May Total Cash Sales 12240 16320 28560…
Q: Wilson Corporation has budgeted sales and production over the next quarter as follows: July 40,000…
A: Lets understand the basics. Budget is prepared by the management to estimate the profit and loss of…
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A: The budget is prepared by the management on the basis of past experience. On the basis of the…
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A: Given information is: Budgeted sales (in units) for the Rockwall Energy Drink Company are as…
Q: Avril Company makes collections on sales according to the following schedule: 30% in the month of…
A: Cash collection in March from January sales = January sales x 11% = $150,000 x 11% = $16500
Q: Seebold, Inc., has budgeted sales and production over the next quarter asfollows: July August…
A: Sales Budget: The sales budget is the budget prepared to estimate the revenue, the expected number…
Q: BUDGETED FINANCIAL STATEMENTS CELEBI CORP. has the following sales forecast for the first four…
A: What is meant by Budgeting? It is the process of forecasting future production, sales, operating,…
Q: Frolic Corporation has budgeted sales and production over the next quarter as follows: July…
A: August sale is 56,000 , which means inventory at the end of July will be 5,600 ( 10% of 56,000).…
Q: KZ Trading Co. budgeted merchandise purchases of 40,000 units next month. The expected beginning…
A: Budgets are the estimates made for future period of time. Budgeted unit sales means how much units…
Q: Blue Wave Company budgets the following unit sales for the next four months: September, 3,800 units;…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: A company has budgeted sales of 20, 000 units in April. An estimated increase in sales of 5,000…
A: Production for each month = Sales + Ending Inventory - Beginning Inventory Ending Inventory for the…
Q: The sales budget is provided below for the product of Company ABC. Jan 30,000 units Feb…
A: Production budget: Production budget is the estimation or projection of number of units the company…
Q: Budgeted sales are $200,000 for January Collections of sales are 50% in the month of sale and 50%…
A: In this numerical has covered the concept of Budgeting.
Q: Peak sales for Mideast Products, Inc., occur in August. The company's sales budget for the third…
A: a. Particulars July August September Total May sales ($430,000 x 10%) $43,000 $430,000…
Q: Palmgren Company produces consumer products. The sales budget for four months of the year is…
A: Note: Units produced = Total needed - Beginning inventory Total needed = Unit sales + Desired ending…
Q: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and…
A: The budgets are prepared to estimate the requirements for the future period.
Q: Budgeted sales at Ikkea Manfacturing over the next four months are given below: September…
A: Expected cash receipts are the receipts which the seller expects from the buyers when the goods are…
Q: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and…
A: Calculation of Ending Finished Goods Inventory for the month of July: = 30% of the total sales unit…
Q: Harrti Corporation has budgeted for the following sales: July August September $446,200 $581,200…
A:
Q: Gargalicana Company is preparing its cash budget for next year. Budgeted sales for four months are…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: Budgeted sales in Acer Corporation over the next four months are given below: September $120,000…
A: Cash collection is the activity to receive payment from the customers to whom the sales have been…
Q: Frame Manufacturing Corporation has provided the following sales budget information: July August…
A: Cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: Budgeted monthly sales revenue is as follows: MUR January 56,000 February 45,000 March 85,000 April…
A: The question is related to Cash Budget. The Cash Budget is a Statement of Cash Receipts and Cash…
Q: A store has the following budgeted sales for the next three months. Cash sales are 25% of total…
A:
Q: Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 45,000 units. The…
A: Budgeted production is the expected production
Q: Wallace Company provides the following data for next year: Budgeted Sales $126,000 Month January…
A: Cost of goods sold of a business says that how much cost has been incurred for selling goods after…
Q: If NUBD Corp. plans to produce 5,000 units in June, what are budgeted sales for July? * C Format:…
A: Beginning inventory for June = Budgeted sales for june x 40% = 4000 x 40% = 1600 units
Q: Harrti Corporation has budgeted for the following sales: $446,800 $581,800 $615,900 $890,900…
A: Accounts receivable is the account shown in a balance sheet that represents the amount that is…
Q: Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next…
A: The production budget is used to estimate the units to be produced for the required sale. It can be…
Q: The budgeted credit sales are as follows: December last year January February March Collection:…
A: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash budget is…
Q: dise purchases of 40,000 units next month. The expected beginning inventory is 12,000 units and the…
A: The right answer is 37,000 units
Q: Folgerty Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000…
A: given that, Desired finished goods inventory levels at the end of the month are 20% of the next…
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A: Inventory is a big asset for an…
Q: Roberts Enterprises has budgeted sales in units for the next five months as follows: June 4,560…
A: The production budget is prepared by the management to find out the units to be produced. It can be…
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A: The budget is prepared to record the requirements for the future period.
Q: Center Company makes collections on sales according to the following schedule: 30% in the month of…
A: The following month means the previous month of any given month. Therefore the following month of…
Q: What is the budgeted units of inventory for March 31?
A: Formula to calculate budgeted units of inventory for March 31: Budgeted units = sales units +…
Q: Budgeted sales in Allen Company over the next four months are : September $100,00, October $160,000,…
A: A budget is regarded as a plan that is prepared by an individual or by a group of people in order to…
Q: Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and…
A: The production budgets are prepared to estimate the number of units to be purchased during the…
Q: Christian Company has budgeted sales of its popular boomerang for the next four months as follows:…
A: A production budget seems to be a budgetary plan that specifies the number of units that will be…
Q: The management of Jewel Company plans to have a finished goods inventory at the end of each month…
A: Beginning Inventory of a particular month will be equal to ending inventory of immediately preceding…
Q: Conchita Company has the following information: Month Budgeted Sales March P…
A: The Calculation of Gross Profit and Cost of sales is as follows. You may kindly note that all…
Q: Perry Company has provided the following information: Month…
A: The budgets are prepared to estimate the production requirements for the future period.
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- 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?The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
- Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the yearCash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.
- Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: Estimated sales at 125 per unit: Estimated finished goods inventories: Work in process inventories are estimated to be insignificant (zero). Estimated direct materials inventories: Manufacturing costs: Selling expenses: Instructions Prepare the following budgets using one column for each month and a total column for the first quarter, as shown for the sales budget: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement with budgeted operating income for March.Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions Prepare a budgeted income statement for 20Y9. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
- Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs 1.24 per pound, determine the direct materials purchases budget for January.Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.