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Matoika Manufacturing's sales department has submitted the following sales budget for the upcoming fiscal year. 1st 2nd 3rd 4th Quarter 8,900 Quarter 1e,900 Quarter 12,900 Quarter 11,900 Budgeted sales (units) The selling price of the company's product is $29 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $89,500. The company expects to start the first quarter with 2,450 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,700 units. Required: 1-a. Prepare the company's sales budget.

Matoika Manufacturing's sales department has submitted the following sales budget for the upcoming fiscal year. 1st 2nd 3rd 4th Quarter 8,900 Quarter 1e,900 Quarter 12,900 Quarter 11,900 Budgeted sales (units) The selling price of the company's product is $29 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $89,500. The company expects to start the first quarter with 2,450 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,700 units. Required: 1-a. Prepare the company's sales budget.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...
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1-b. Prepare the schedule of expected cash collections. Matoika Manufacturing Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 2. Prepare the company's production budget for the upcoming fiscal year.
Transcribed Image Text:1-b. Prepare the schedule of expected cash collections. Matoika Manufacturing Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 2. Prepare the company's production budget for the upcoming fiscal year.
Matoika Manufacturing's sales department has submitted the following sales budget for the upcoming fiscal year: 2nd 3rd Quarter 12,900 1st 4th Quarter 8,900 Quarter 10,900 Quarter 11,900 Budgeted sales (units) The selling price of the company's product is $29 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $89,500. 33 The company expects to start the first quarter with 2,450 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,700 units. Required: 1-a. Prepare the company's sales budget. Matoika Manufacturing Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales
Transcribed Image Text:Matoika Manufacturing's sales department has submitted the following sales budget for the upcoming fiscal year: 2nd 3rd Quarter 12,900 1st 4th Quarter 8,900 Quarter 10,900 Quarter 11,900 Budgeted sales (units) The selling price of the company's product is $29 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $89,500. 33 The company expects to start the first quarter with 2,450 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,700 units. Required: 1-a. Prepare the company's sales budget. Matoika Manufacturing Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales
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