Please do not give solution in image format thanku The following are budgeted data:Sales in unitsProduction in unitsOne pound of material is required for each finished unit. The inventory of materials at the end of each month should equal25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:Multiple ChoiceO20,375 pounds20,125 pounds19,625 poundsJanuary February March16,000 22,000 19,00018,50019,00020,00018,375 pounds

Budgets arare the forecasts or estimates made for future period. Direct material budget shows how…

The following are budgeted data: Sales in units Production in units Multiple Choice O One pound of material is required for each finished unit. The inventory of materials at the end of each month should equ 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: O 20,375 pounds 20,125 pounds 19,625 pounds January 16,000 19,000 18,375 pounds February 22,000 20,000 March 19,000 18,500

The following are budgeted data: Sales in units Production in units Multiple Choice O One pound of material is required for each finished unit. The inventory of materials at the end of each month should equ 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: O 20,375 pounds 20,125 pounds 19,625 pounds January 16,000 19,000 18,375 pounds February 22,000 20,000 March 19,000 18,500

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 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...

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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
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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.
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