Prepare a monthly purchasing schedule for Jan - Apr. HQM inc, estimates/projects its unit sale as follows: Jan - P100,000 Feb - P95,000 Mar - P110,000 Apr - P113,000 May - P115,000 The company maintains inventory at budgeted sales for the next month. Dec. 31 ending inventory is P88,000.
Q: Product T Product X Estimated inventory, March 1 28,000 units 20,000 units Desired…
A: Frixion Co.…
Q: Shadee Corporation expects to sell 520 sun shades in May and 430 in June. Each shade sells for $165.…
A: A budget is an estimation of income and expenditures on the basis of past performance or industry…
Q: Vernon Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: It is given in the question that ending inventory is 15 % of the following months of cost of goods…
Q: Below is the sales budget in units of Silver Company. How many units is the beginning inventory for…
A: In this question it is mentioned that desired ending inventory will be 120% of the following months…
Q: Ruiz Co. provides the following sales forecast for the next four months. April May June July Sales…
A: Budgeted production = Sales + Budgeted ending inventory - Budgeted beginning inventory
Q: A. Cardinal Company has finished goods inventory of 55,000 units on January 1st Its projected sales…
A: Production budget is prepared to estimate the production units and desired inventory for a…
Q: A Sales Manager of S Ltd. has prepared sales budget for the next few months as follows: Month No.…
A: Solution.. Desired ending inventory = 20% of next month sales June = 20% of July sales = 20% *…
Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…
A: Solution: Number of units that Tiny must produce in June and July are present in the following…
Q: cost of goods sold for August
A: Direct material (2 pounds @P3) P6 Direct labor (0.5 hours @P20) P10 Variable overhead (0.5 hours…
Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…
A: A budget is an estimate of incomes and expenditures of an organization over a period of time.
Q: Rocker Company expects to sell 8,500 units for $170 each for a total of $1,445,000 in January and…
A: Answer) Calculation of Budgeted Purchases for January and February January February…
Q: ABC Company forecasts sales in units for January to May as follows: Jan Feb Mar Apr May Units 2,000…
A: The Sales of five month are given Required Production Budget
Q: Prepare a monthly purchasing schedule for Jan - Apr. HQM inc, estimates/projects its unit sale as…
A: Purchasing schedule in the business shows that how many units needs to be purchased in order to…
Q: Wyatt Ltd produced the following budget information concerning sales revenue: Sales revenue £…
A: Budgets are prepared by the management on the basis of past experience. Based on the budget, It is…
Q: Sage Co. always holds 4% of the next month's sales in ending inventory. Prepare a production budget…
A: Production budget is prepared to know how much production should be done in order to support the…
Q: Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred.…
A: Cash received would be calculated by multiplying the percentage of cash received by the budgeted…
Q: Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is…
A: Cash budget is very important budget in business which shows expected cash receipts and expected…
Q: October, November, and December, CVM Inc. expect to sell 50,000, 48,000, and 51,000 units…
A: Sales of October = 50,000 Sales of November = 48,000 Sales of December = 51,000 End of month…
Q: Digregory makes all purchases on account, subject to the following payment pattern: Paid in the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Cromwell Company is a distributor that sells products to retail companies. The company sells one…
A: Purchase during a month=sales in that month+closing inventory-opening inventory purchase price per…
Q: UIO Company makes all of its sales on account. UIOcollects its account as follows: 20% in the month…
A: The account receivables are the assets of the business which would be converted into cash within one…
Q: Mirbat Company prepares its budget for January-April pe od. On 1 January, the cash available is…
A: Cash budget in the business shows expected cash receipts and cash payments to be made in the…
Q: Alpha CD's makes all sales on account, subject to the following collection pattern: 20% are…
A: Given: The pattern of collection of Sales: Collection Remarks October November December…
Q: A company has a policy of maintaining an inventory of finished goods equal to 30 percent of the…
A: Raw material means the material purchased and still not enter in to the production lines. Work in…
Q: Prepare a production budget for the first quarter of the year. Show the number of drums that should…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…
A: Budgeted cost of goods sold in March = 4,300 * $260 * 60%= $670,800
Q: NUBD Company makes all of its sales on account. NUBD collects its account as follows: 20% in the…
A: Ending Balance = Beginning Balance + Credit Sales - Payments received from Customers
Q: Operational budgets are used by a retail company for planning and controlling its business…
A: Cost of merchandise averages 40% of its selling price. The company maintains inventory equal to 25%…
Q: Shadee Corp. expects to sell 600 sun visors in May and 440 in June Each visor sells for $14Shadee's…
A: The budget process involves an estimation of expected expenses or revenues relating to a particular…
Q: CELEBI CORP. has the following sales forecast for the first four months of 20X9. January February…
A: You have posted multiple parts, so as per Bartleby policy only the first three parts are answered,…
Q: Blue Wave Company budgets the following unit sales for the next four months: September, 3,500 units:…
A: Production budget is prepared after the sales budget as expected sale units are required to prepare…
Q: Crane Ltd. estimates sales for the second quarter of 2022 will be as follows. Month Units April…
A: Lets understand the basics. Budget is an estimation of future profit and loss. Master budget is…
Q: L Incorporated provided the following estimated sales data in the first five months of 2021: Month…
A: Budget is regarded as the financial planning that is made by the business to determine the income or…
Q: Tillman Cycles manufactures chainless bicycles. On March 31, Tillman Cycles had 210 bikes in…
A: Here in this question, we are required to prepare production budget. Budget is a estimation of…
Q: Croy Inc. has the following projected sales for the next five months: Month Salen in Unita 3,850…
A: Following are the solutions to given problems
Q: he company, a wholesaler, budgeted sales for the indicated months June July…
A: The cost of goods sold is Net Sales minus gross profit or it may be calculated as follows The cost…
Q: Lexi Company forecasts unit sales of 1,040,000 in April, 1,220,000 in May, 980,000 in June, and…
A: Budgeted purchases: Budgeted purchases are the estimates of purchases of a particular month based on…
Q: For the first quarter of 2021, the target sales amount to 500,000 units. For the months of January,…
A: Budgeting: It is a process of estimating the money required to maintain the normal operations of…
Q: MNO Company forecast sales in units for July to November as follows: Units…
A: Production budget is that budgeted statement which helps the manufacturing unit to infer about…
Q: Cardinal Company has finished goods inventory of 55,000 units on January 1. Its projected sales for…
A: Budgeted units of inventory = Next month's sales*20%
Q: Cullumber Company, a wholesaler, budgeted the following sales for the indicated months:…
A: Cost of goods sold = Total sales / (1 + markup) Cost of goods sold for July = $4380000/(1+0.30) =…
Q: ollowing is the sales budget of BULAKLAK Company for the period January to June 2014: Months Units…
A: The production budget plan ascertains the number of units of items that should be made and is gotten…
Q: Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is…
A: Cash budget in the business shows that how much cash is expected to be paid out or received in…
Q: Vernon Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: Since you have asked only first two requirements, am answering it alone… a. Working note:
Q: GIVEN: Below is a Production Budget for the third quarter of a company's fiscal year that includes…
A: Production means number of units produced during the specified period. Sales = Opening stock +…
Q: All operating expenses are paid in cash in the month incurred. If HDC expects to sell 24,500 units…
A: Solution:- Given, Budget information is available for the HD Sales Company (HDC) for January. IF HDC…
Q: HOM Enterprises estimated the following sales for the first six months of 2022: Month Estimated…
A: The cash budget is prepared by the management to estimate the expected cash collection and cash…
Step by step
Solved in 2 steps
- All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
- Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
- Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.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.Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Direct materials purchased during the year, 854,000; beginning inventory of direct materials, 31,000; and ending inventory of direct materials, 26,000. Totals from other budgets included:
- Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $129,582 in November, $294,872 in December, $239,582 in January, and $234,837 in February. What is the balance in accounts payable for January 31, and February 28?Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?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?