Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): July August September October Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 20% in the month of purchase 80% in the following month $ 104 12, 250 13,600 13, 150 15,000 3.9 pounds $ 3.9 per pound 5.9 direct labor-hours $34.5 per direct labor-hour The ending finished goods inventory should equal 20% the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. Required: a. What are the budgeted sales for August? b. What are the expected cash collections for August? c. According to the production budget, how many units should be produced in August?

Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): July August September October Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 20% in the month of purchase 80% in the following month $ 104 12, 250 13,600 13, 150 15,000 3.9 pounds $ 3.9 per pound 5.9 direct labor-hours $34.5 per direct labor-hour The ending finished goods inventory should equal 20% the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. Required: a. What are the budgeted sales for August? b. What are the expected cash collections for August? c. According to the production budget, how many units should be produced in August?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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