The budget director of Samgyupsawelcome Grill requests estimates of sales, production and other operating data from the various administrative units every month. Selected information concerning sales and production for December 2019 is summarized as follows: A. Estimated sales for December by sales territory: Cavite: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Laguna: Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit Batangas 360 units at $750 per unit 180 units at $1,400 per unit Backyard Chef Master Chef B. Estimated inventories at Dec 1 Direct Materials: Finished products: Grates: 290 units Backyard Chef: 30 units Master Chef: 32 units Stainless steel: 1,500 Ibs Burner assemblies: 170 units Shelves: 340 units
Q: Meera Company is preparing its master budget for 2021. Relevant data pertaining to its production,…
A: Production budget shows how many units needs to be produced in order to coverup sales demand and…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Since we answer only three subparts, we will answer the first three. Please resubmit the question…
Q: Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the…
A: Requirement 1: Prepare the sales budget for the month ending February 28.
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Meera Company is preparing its master budget for 2021. Relevant data pertaining to its production,…
A: Direct material budget helps in understanding for how much cost direct material needed to be…
Q: A Management Accounting student has been tasked to produce a production volume budget for a company.…
A: Budget means the expected value for future. Raw material means the goods which is processed to make…
Q: Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The…
A: Note :- Dear Student , You asked multiple…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: The management of Zigby Manufacturing prepared the following balance sheet for March 31. To prepare…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The…
A: As per the guidelines, only three parts of a question is allowed to be answered. Please upload…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Al Hind Company is preparing its annual budgets for the year ending December 31, 2020.Accounting…
A: Sales budget states total sales value gained in selling a product of units.…
Q: The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer,…
A: Budgeting is a process in management and cost accounting through which management just estimate and…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Budgeting:- When a company prepares an estimate of the units and cost and compares the actual data…
Q: Instructions Prepare a sales budget for February. Prepare a production budget for…
A: Budgeting is a technique by which a Business Entity provide for the estimated sales and production…
Q: Instructions Prepare a sales budget for February. Prepare a production budget for February. Prepare…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A:
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Budgeting: It is a process to prepare the financial statement by the manager to estimate the…
Q: You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise…
A: The budget is prepared to estimate the requirements for the future period.
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Concept Direct Labor Cost is wages or cost paid to workers involved in manufacturing process.Direct…
Q: The following information applies to the questions displayed below.] Morganton Company makes one…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A: Budgets are estimates or desired outcomes for the coming period. Budgets are used so that actual…
Q: The SK Industries, Ine. manufactures and sells two products, Accel Active and Accel Regular. In…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Hatcher Company prepared the following budgeted income statement for 2019: E (Click the icon to view…
A: Operating Income: Deduction of cost of Goods sold from Sales revenue is called Gross profit. Selling…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The budgeted price for of a product(per unit) or sales is analysed and created or we say developed…
Q: The budget director of Birds and Beyond, Inc., with the assistance of the controller, treasurer,…
A: The question is related to Budgetory Control. We will proceed the question with Sales budget.
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of…
A:
Q: Meera Company is preparing its master budget for 2021. Relevant data pertaining to its production,…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer,…
A: Hello, As the question has more than 3 sub-parts, I answer, first 3 subparts are answered. If you…
Q: Required: 1. Prepare a sales budget for January. 2.prepare a production budget for Jan. 3.…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: 1. Prepare a sales budget for July.
A:
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Sales revenue is the revenue earned from the sale of product and services. Production units means…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Total sales = Sales of territory A + Sales of territory B Units produced = Sales + ending inventory…
Q: You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: The budget director of Gourmet Grill Company requests estimates of sales, production, and other…
A: Note: As per the policy, we are supposed to solve first three subparts at a time. Kindly repost the…
Q: The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In…
A: Answer 5)
Q: Morganton Company makes one product, and has provided the following information to help prepare the…
A: Budgeted sales for July=Budgeted unit sales of July×Budgeted selling price=10,000×$70=$700,000 Thus,…
Q: The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer,…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The budget director of Gourmet Grill Company requests estimates of sales, production, and other…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Konka Company manufactures beach umbrellas. The company is preparing detailed budgets for the third…
A: The sales budget is a cost accounting record showing the estimated quantity and value of sales to be…
Q: The following information applies to the questions displayed below.] Morganton Company makes one…
A: Budgeted sales can be calculated by multiplying total units and per unit sales price. It is…
Q: [The following information applies to the questions displayed below.] Morganton Company makes…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: The budget director of Royal Furniture Company requests estimates of sales, production, and other…
A: The budget is prepared to estimate the requirement for the future period.
Q: Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The…
A: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash budget is…
Q: What should total sales revenue be if territories A and B estimate sales of 10,000 and 13,000 units,…
A: No. of units sold in territory A (a) 10,000 No. of units sold in territory B (b) 13,000 Total…
Q: Royal Furniture Company Sales Budget For the Honth Ending February 20 Unit Sales Unit Selling…
A: Solution:- Preparation of sales budget as follows:-
Q: Gamma Ltd. manufactures and sells two products, Ago and Bago. In July 2019 Gamma’s Budget Department…
A: The budget is prepared to estimate the requirements for the future period.
Q: applies to the questions displayed below.) Morganton Company makes one product and it provided the…
A: Solution: Raw materials to be purchased are based on production needs of the month by adding desired…
Step by step
Solved in 4 steps with 6 images
- 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.Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: Estimated sales for July by sales territory: Estimated inventories at July 1: Desired inventories at July 31: Direct materials used in production: Anticipated purchase price for direct materials: Direct labor requirements: Instructions Prepare a sales budget for July. Prepare a production budget for July. Prepare a direct materials purchases budget for July. Prepare a direct labor cost budget for July.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.
- Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiners master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employers share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the companys union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: Required: 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Be sure to show supporting calculations. a. Production budget in units b. Direct labor budget in hours c. Direct materials cost budget d. Sales budget 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. Be sure to show supporting calculations. (CMA adapted)Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Materials used in production: Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
- 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?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.Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: Estimated sales for January: Estimated inventories at January 1: Desired inventories at January 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for January: Estimated operating expenses for January: Estimated other revenue and expense for January: Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January. Prepare a factory overhead cost budget for January. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be 9,000, and work in process at the end of January is estimated to be 10,500. Prepare a selling and administrative expenses budget for January. Prepare a budgeted income statement for January.
- 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.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.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.