hello, help please Freese Inc. is in the process of preparing the fourth quarter budget for 2019, and the following data have been assembled:• The company sells a single product at a price of $59 per unit. The estimated sales volume for the next six months is as follows:September 16,900 units15,600 units18,200 units26,000 units11,700 units13,000 unitsOctoberNovemberDecemberJanuaryFebruary• All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month ofsale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value ofaccounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $678,028 on September 30, 2019.Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month'sbudgeted sales. The finished goods inventory on September 30, 2019, is expected to be 4,680 units.• To make one unit of finished product, 5 pounds of materials are required. Management's policy is to havë enough materials on handat the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 32,760pounds on September 30, 20019.• The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid inthe following month. The accounts payable for raw material purchases is expected to be $148,122 on September 30, 2019.Required:a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of2019.OctoberNovemberDecemberTotalExpected sales in units c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2019.OctoberNovemberDecemberTotalBeginning inventory of finished goodsUnits to be producedGoods available for saleDesired ending inventory of finished goodsQuantity of goods soldd. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019.OctoberNovemberDecemberTotalBeginning inventory of raw materialsPurchases of raw materialsRaw materials available for useDesired ending inventory of raw materialsQuantity of raw materials to be used in production

To prepare the following: a) sales budget in units and dollars, by month and in total, for the…

- Prepare a production budget October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials

- Prepare a production budget October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4PB

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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.
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.
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Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2019. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
Echo Amplifiers prepared the following sales budget for the first quarter of 2018: It also has this additional information related to its expenses: Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018.