The following information was taken from Colleen's Coatings budget for 2003. Unit Sales 20,000 Quarter First Second Third 16,000 23,000 25,000 Fourth Beginning inventory of 5,000 units reflects Colleen's policy of maintaining an ending inventory equal to 25% of the next quarter's sales. Colleen anticipates selling 20,500 units during the first quarter of 2004. The selling price per unit will remain at $16 throughout the budget period. 1. What is the desired number of units in ending inventory at the end of the first quarter? 5,000 4,000 9,000 7,000 А. В. C. D. 2. How many units should Colleen plan to produce during the second quarter of 2003? 16,000 14,250 17,750 19,500 A. В. C. D. What is the budgeted sales revenue for the third quarter of 2003? $376,000 $336,000 $256,000 $368,000 3. А. В. C. D.

The following information was taken from Colleen's Coatings budget for 2003. Unit Sales 20,000 Quarter First Second Third 16,000 23,000 25,000 Fourth Beginning inventory of 5,000 units reflects Colleen's policy of maintaining an ending inventory equal to 25% of the next quarter's sales. Colleen anticipates selling 20,500 units during the first quarter of 2004. The selling price per unit will remain at $16 throughout the budget period. 1. What is the desired number of units in ending inventory at the end of the first quarter? 5,000 4,000 9,000 7,000 А. В. C. D. 2. How many units should Colleen plan to produce during the second quarter of 2003? 16,000 14,250 17,750 19,500 A. В. C. D. What is the budgeted sales revenue for the third quarter of 2003? $376,000 $336,000 $256,000 $368,000 3. А. В. C. D.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...

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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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