Production budget. ABC has budgeted sales in units for the next five months as follows: July August September October November 1,000 units 2,000 units 3,000 units 4,000 units 5,000 units Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on June 30 is 150 units. The total number of units to be produced in October is:
Q: The following sales are predicted for a company’s next four months. Each month’s ending inventory of…
A: Budgeted production of units = Sales + Ending inventory - Beginning inventory
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A: Budgeted cash collection: =Beginning accounts receivable+ (Budgeted level of sales *Collections for…
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A: Working:
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A: Given inventory required = 30% of budgeted next month sales units. Units required = Current sales +…
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A: Master Budget: Master Budget is prepared by the company to plan its yearly Revenue and Expenses.…
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A: Inventories to be purchased in business means how many units of inventory to be purchased for…
Q: Planet of the Crepes, Inc. is preparing its master budget for its first month of business. It…
A: Budgeted sales revenue i8s calculated by multiplying the Budgeted no. of units sold with the sales…
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A: Production Budget: Production budget is usually based on the sales budget and the desired inventory…
Q: Roberts Enterprises has budgeted sales in units for the next five months as follows:…
A: Sales budget gives an estimation about goods and services that company which it agrees to sell in…
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: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: The production budget tells us how many units are needed to be produced to cover the expected…
Q: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: The production budget seems to be a forecast or estimate of the number of items that the company…
Q: A company has budgeted sales for January and February of 20,000 and 25,000 units, respectively. The…
A: Given the following information: Budgeted sales for January: 20,000 units Budgeted sales for…
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: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: The management generally used the production budget to find out the required units to be produced.…
Q: ow Industries' projected sales budget for the next four months is as follows: Units January 70,700…
A: The question is based on the concept of Cost Accounting.
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: Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single…
A:
Q: Budgeted sales at Ikk Eaa Limited over the next four months are given below: September $150,000…
A: Cash collected has been calculated in the next step.
Q: Down Products, Ltd of Australia has budgeted sales of its popular brand for the next four months as…
A: Answer: Production budget for the 2nd Quarter is as follows:
Q: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: Product budget is the statement prepared for the estimation of units to be produced.
Q: Harrti Corporation has budgeted for the following sales: July August September $446,200 $581,200…
A:
Q: The Cambridge Company has budgeted sales revenues as follows.…
A: Cash budget is the estimated cash receipts and payments and also shows opening and closing cash…
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: Quipplex Limited is currently preparing budgets for September to December. Its estimated sales…
A: Budgets are made to estimate the number of units to be manufactured, estimate the inventory levels…
Q: The budget committee of Clipboard Office Supply has assembled the following data. Sales in April are…
A: Sales budget; The sales budget is prepared to estimate or project the sales in dollars and units for…
Q: Budgeted sales for the first six months are listed below: JANUARY FEBRUARY MARCH APRIL MAY 8,000…
A: Closing inventory of May = Opening Inventory of June = 40% of June sales = 40% x 4,000 = 1,600
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: Champ Incorporated budgets the following sales in units for the coming two months. Each month's…
A: Production Budget :— It is functional budget that forecast the units & amount required for…
Q: Corporation makes one product. Budgeted unit sales for July, August, September, and October are…
A: A budget is defined as the estimation or forecast of revenues to be earned and expenditures to be…
Q: Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales…
A: Formulas: Expected no. of units produced = Expected unit sales + Desired ending inventory -…
Q: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: Sales Budget: When it comes to sales budgets, they are simply financial projections that forecast a…
Q: Peak sales for General Products, Inc. occur in September. The company's sales budget for the third…
A: The cash collection schedule is prepared to record the estimated cash collections to be made during…
Q: Montel Company’s July sales budget calls for sales of $600,000. The store expects to begin July with…
A: Inventory is a big asset for an…
Q: ABC Store. has budgeted sales for June and July at $690,000 and $720,000, respectively. Sales are…
A: July Cash sale = $690,000 x 10% = $69,000 July Credit sale = $690,000 x 90% = $621,000
Q: Aggrava Limited is currently preparing budgets for September to December. Its estimated sales…
A: Inventory budget is the estimation of inventory to be required in the business in a particular…
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: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: Answer) Down Under Products, Ltd. Production Budget April May June…
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: Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next…
A: Production budget: It implies to one of the components of annual business financial plan that…
Q: Roberts Enterprises has budgeted sales in units for the next five months as follows: 4,560 units…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Champ, Inc., predicts the following sales in units for the coming two months. Each month’s ending…
A: Sales budget: It can be defined as a quantitative financial plan that shows the total sales revenue…
Q: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: Production budget refers to the fact of number of units which were intended to produced by the…
Q: Budgeted sales at Ikkeep Corporation over the next four months are given below: September…
A: Cash receipts will be calculated as follows: Cash Receipt = Current month cash sales + 50% of…
Q: Frambosa Limited is currently preparing budgets for September to December. Its estimated sales…
A: Inventories purchase budget means how much units of inventory to be purchased in the particular…
Q: Roberts Enterprises has budgeted sales in units for the next five months as follows: June…
A: Since, Sales in Units = Opening inventory units + units to be produced - Closing inventory units
Q: Assume the following budgeted information for a merchandising company: Budgeted sales (all on…
A: THE COMPANY CASH COLLECTION OF CREDIT SALES ARE EXPECTED TO BE : 1. 70 % OF SALE IS RECEIVED IN THE…
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- 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?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.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?
- 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.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?A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
- 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.Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.
- Cash 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.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.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?
