Number of planters to be sold January.. 3,000 February. 3,200 March.. 3,100 April.. 4,200 May.. 4,000 Inventory at the start of the year was 700 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements a. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. b. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Number of planters to be sold January.. 3,000 February. 3,200 March.. 3,100 April.. 4,200 May.. 4,000 Inventory at the start of the year was 700 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements a. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. b. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Name: Hoffman Manufacturing produces self-watering planters for use in upsca
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Hoffman Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows Number of plant

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

See similar textbooks

Similar questions

The Tobler Company has budgeted production for next year as follows: Quarter ............... First Second Third Fourth Production in units ... 10 000 12 000 16 000 14 000 Four kilos of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4 000 kg. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: A. 63 200 kg. B. 56 800 kg. C. 62 400 kg. D. 50 400 kg
Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales ………………………………………………. $150,000 $157,500 Merchandise purchases …………………………… 107,000 112,400 Operating expenses: Payroll …………………………………… 13,600 14,280 Advertising ………………………………… 5,400 5,700 Rent ………………………………………… 2,500 2,500 Depreciation ……………………………… 7,500 7,500 End of April balances: Cash ………………………………………… 30,000 Bank loan payable ………………………… 26,000 Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month. (3)…
Accounting Question
Champ, Inc., predicts the following sales in units for the coming two months. Each month’s ending inventory of finished units should be 60% of the next month’s sales. The April 30 finished goods inventory is 108 units. Compute budgeted production (in units) for May. May June Sales in units . . . . . . . . . . . . . 180 200
Cypress Inc. has the following budgeted sales for the next quarter.Month: 1 2 3Units: 10,000 11,000 12,000Inventory of finished goods on hand at the beginning of the quarter is 7,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 5,000 units every month.Calculate the total quantity to be produced during the quarter.
Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units... 60,000 80,000 90,000 70,000 ........ Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: A. 82,500 pounds B. 200,000 pounds C. 205,000 pounds D. 165,000 pounds
Seebold, Inc., has budgeted sales and production over the next quarter asfollows: July August September OctoberSales in units . . . . . . 15,000 18,000 ? 22,000Production in units . . 15,900 18,900 21,300 —On July 1, Seebold, Inc., has 4,500 units in finished goods. Ending inventory offinished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units. Calculate the budgeted unit sales for September. (Hint: Use the cost of goods sold model.)a. 20,000.b. 21,000.c. 21,400.d. 22,100.
Q.Production budget. Superior Industries sales budget shows quarterly sales for the next year as follows: Quarter 1–10,000; Quarter 2–8,000; Quarter 3–12,000; Quarter 4–14,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 20% of the next quarter’s sales. Budgeted production for the second quarter of next year would be: 1. 7,200 units; 2. 8,800 units; 3. 12,000 units; 4. 10,400 units
ABC Farm is preparing a collection budget for the year. Sales are expected to be P100,000 in January; P200,000 in February; and P300,000 in March. Approximately 60% of the sale is collected during the month of sale and the other 40% is collected in the following month. What is the beginning accounts receivable balance of March? 1. P 80,000 2. P120,000 3. P180,000 4. P200,000 01 O 2 O 3 0 4
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires aminimum cash balance of at least $5,000 to start each quarter.Quarter1 2 3 4 YearCash balance, beginning ............................ $ 6 $ ? $ ? $ ? $ ?Add collections from customers ................. ? ? 96 ? 323Total cash available ................................... 71 ? ? ? ?Less disbursements:Purchase of inventory ............................. 35 45 ? 35 ?Operating expenses ................................ ? 30 30 ? 113Equipment purchases ............................. 8 8 10 ? 36Dividends ................................................ 2 2 2 2 ?Total disbursements .................................... ? 85 ? ? ?Excess (defi ciency) of cash availableover disbursements ................................. (2) ? 11 ? ?Financing:Borrowings .............................................. ? 15 — — ?Repayments (including interest)* ............ — — (?) (17) (?)Total fi nancing…
Sioux Corporation is estimating the following sales for the first four months of next year: January........ $260,000 February...... $230,000 March.......... $270,000 April............. $320,000 Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales (in units): July August September 310,000 Expected unit sales............. 230,000 275,000 Villi wants to maintain a finished goods inventory of 20% of the next month's expected sales. How many units should Villi plan on producing for the month of August?