PA33-6 Preparing Operating Budgets for a Merchandising Firm Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: LO33-5 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter's sales demand. • Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales 0-6689 revenue. Required: Prepare the following operating budgets for quarters 1, 2, and 3. (You do not have enough information to complete quarter 4.) 1. Sales budget. 2. Merchandise purchases budget. 3. Cost of goods sold budget. 4. Selling and administrative expense budget. 5. Budgeted income statement.

PA33-6 Preparing Operating Budgets for a Merchandising Firm Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: LO33-5 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter's sales demand. • Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales 0-6689 revenue. Required: Prepare the following operating budgets for quarters 1, 2, and 3. (You do not have enough information to complete quarter 4.) 1. Sales budget. 2. Merchandise purchases budget. 3. Cost of goods sold budget. 4. Selling and administrative expense budget. 5. Budgeted income statement.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...

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Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
TB Problem Qu. 09-154 Caprice Corporation is a wholesaler of industrial goods... Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $330,000 for December, and $310,000 for January. Collections are expected to be 40% in the month of sale, 59% in the month following the sale, and 1% uncollectible. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $67,000. The November beginning balance in the accounts payable account is $254,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December.
Q30 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 50 $ 70 $ 60 $ 65 Variable cost per pound 25 42 27 46 Sales (in pounds) 3,970 3,970 3,864 4,536 The total market was estimated to be 86,000 pounds at the time of budget. The actual total market for the year is 81,000 pounds. What is ET's sales mix variance? Multiple Choice $21,408 favorable. $7,968 favorable. $5,088 favorable. $4,128 favorable. $9,408 favorable.
QUESTION2 A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distribution costs R230 400 Sales commission 5% of selling price Sales 90 000 units Required The marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is speny on advertising Calculate the revised breakeven point based on the marketing managers suggestion
Pls provide solution The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:VC/unit soldSales commissions P0.70Shipping 1.10Advertising 0.20 Other 2.5 Fc per month Executive salaries, 34,000Depreciation on office equipment-, 11,000Other, 19,000 Advertising, 14,000 If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be:a.P45,000b.P56,250c.P40,000d.P78,000
Q20 Olwethu Ltd manufactures and sells two products, Nike and Carvela shoes. The following information relates to the two products for the financial year ended 31 Dec ember 2014: Nike Carvela Budgeted sales(in units) 105 000 112 000 Selling price per unit R20 R22 Required opening inventory 30 900 40 100 Required closing inventory 29 000 21 500 The budgeted sales for Carvela are___________. Select one: a. R2 310 000 b. R2 100 0000 c. R2 464 0000 d. R4 410 000
Q12 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 60 $ 90 $ 70 $ 85 Variable cost per pound 30 54 32 60 Sales (in pounds) 3,300 3,300 3,192 4,408 The total market was estimated to be 73,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds. What is MT's contribution margin sales volume variance? Multiple Choice $3,240 unfavorable. $26,200 favorable. $3,480 unfavorable. $25,400 favorable. $26,440 favorable.
question A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distribution costs R230 400 Sales commission 5% of the selling price Sales 90 000 units Required he marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising Calculate the revised breakeven point based on the marketing managers suggestion
Q1; Waroad Company's sales budget projects unit sales of part CB78 of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part CB78 requires 3 pounds of materials, which cost $4 per pound. Warood Company desires its ending raw materials inventory to equal 30% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2018. Instructions: (a) Prepare a production budget for January and February 2019. (b) Prepare a direct materials budget for January 2019. (c) What are the benefits of preparing a production and direct materials budget?
Q40 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 40 $ 70 $ 50 $ 65 Variable cost per pound 20 42 23 46 Sales (in pounds) 4,600 4,600 4,386 5,814 The total market was estimated to be 76,000 pounds at the time of budget. The actual total market for the year is 71,000 pounds. What is the firm's total sales mix variance? Multiple Choice $14,472 favorable. $2,530 unfavorable. $5,712 favorable. $6,072 unfavorable. $10,432 favorable.
Question 1 The marketing department of HASF Corporations has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) Q1 Q2 Q3 Q4 total Budgeted units sales ? 10% increase 10 % decrease 16,335 62,685 Budget selling price per unit 18 18 18 ? 18 budgeted sales revenue ? 297,000 ? 294,030 ? Other information Each quarter ending finished goods inventory is 20% of next month units sold. Next year first quarter beginning inventory is 3,000. Each finished units require 3 grams of raw material that cost Rs 3 per unit. Management desired to end each quarter with an inventory of raw material equal to 15% of the current quarter production needs Beginning inventory of raw material in first quarter 3,000 grams FIND UNIT SALES of Q1 Answer format should be like : 10000 donot USE COMMA's or Currency or UNITs. Answer should be plain…
Q7 Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.