Water Sport Inc. manufactures a small personal water tube used for children learning to swim. Management is now preparing detailedbudgets for the third quarter, July through September, and has assembled the following Information to assista. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes):JulyAugustSeptember7,108 October5,680 November3,5003,1004,680December2,600The selling price of the water tubes is $60.b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:50%In the month of sale45%5%in the month following saleuncollectibleThe beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $163,000.c. The company maintains finished goods inventories equal to 20% of the following month's sales. The Inventory of finished goods onJuly 1 will be 1,420 units.d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent shortages, the company would likethe Inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month'sproduction needs. The Inventory of synthetic rubber compound on hand on July 1 will be 4,080 kilograms.e. The synthetic rubber compound costs $4.00 per kilogram. Water Sport pays for 70% of its purchases In the month of purchase; theremainder is paid for in the following month. The accounts payable balance for synthetic rubber compound purchases will be$13,200 on July 1.Required:1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and collars.) Alsoprepare a schedule of expected cash collections, by month and in total, for the third quarterBalec budgetJulyAugustSeptemberQuarterBudgeted sales (units)Selling price per unitTotal budgeted sales

The Sales Budget is a budget that reports the estimated total number of units of finished goods to…

Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Budgeted sales (units) Selling price per unit Total budgeted sales Balec budget July August Beptember Quarter

Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Budgeted sales (units) Selling price per unit Total budgeted sales Balec budget July August Beptember Quarter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Melissa reviewed her six-month plan for Orchard Creek's Children's Accessory Department, including the actual performance for August and September. She also observed the department's current performance from October 1 through October 15. In her midmonth analysis, Melissa observed the following: Planned sales for October were $7,891 Actual sales from October 1 through October 15 were $3,529 The value merchandise on-order scheduled to arrive before the end of October is $2,749 Planned markdown for October was 1,560 Actual markdown taken from October 1 through October 15 was $715 Stock on hand as of October 15 is valued at $22,160 Planed EOM for October were $18,272 Markup % is 61.5 % What is the open-to-buy remaining for the month of October? Please calculate 1) OTB at Retail and 2) OTB at Cost Edit View Insert Format Toole T-LI.
The beauty department has been given the following information to develop a merchandise plan for the fall-winter season. Calculate the net sales for November. Planned Sales: $873,600 Markdowns: 10.1% Shortages: 2.8% Sales Discounts: 8.6% Initial Markup percent: 48.5% Sales% % of Season's Reductions August 14% 16% September 15% 12% October 13% 12% November 22% 19% December 24% 20% January 12% 21% Select one: O a. $183,456.00 O b. $131,040.00 O c. $192,192.00 O d. $165.984.00
ABC is an online-to-offline platform that sells e-commerce products to offline customers through a network of agents. ABC gives a commission to agents for each sale made. ABC has 4 main product categories: electronics, fashion, supermarket, and others. Please refer to the exhibits for data sets pertaining to the questions below. Today is May 16th. What is the average growth in average sales per agent per month from March to May target? Answer:..... % Which one is the category with the highest and lowest average month-on-month sales growth from March to May target? Answer: Highest : .......... Lowest:............. Today is 16th May We have got the interim result of the sales figures in the first half of May. Typically, the first half of the month constitutes of 40% of sales. Using this assumption, will we reach our May target? What % over the target will we over/under-deliver? Answer: under/over-deliver by ......... % of target Using that assumption, which…
Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 12,000 June $ 14,000 April 16,000 July 17,000 May 10,000 August 18,000 Sales in January and February were $13, 500 and $13,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Ed's Waterbeds Cash Receipts Schedule January February March April May June July August Sales $ $ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $ $$b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? Amount…
In September, a light business bought $3600 worth of bulbs. At the beginning of September, the store had $1400 in lights on hand, and by the end of September, it projected to have $1600 in lamps on hand to meet a few of the planned November sales. What is the September planned cost of goods sold? $6600 $3400 $3800 $5000
Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units O 3,010 O 3,100 O 3,190 O 2,830 O 3,700 Jan. 2,500 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Question 8 Feb. 3,100 March. 3,700 April. 2,800 F6 F7 F8
Olympia Productions Incorporated makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for March is 2,000 medallions. Estimated beginning inventories and desired ending inventories for March are as follows: (Assume 18 inches = 0.5 yards) Estimated Beginning Medallions Ribbon (yards) Inventory 1,100 70 Desired Ending Inventory 750 23 Required: a. Calculate the number of medallions to be produced in March. b. Calculate the number of yards of ribbon to be purchased in March. a. Number of medallions produced b. Number of yards of ribbon purchased
Show in excel format - 9. The sales for Re - Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re - Works management expects the following sales: A table shows Re - Works Inc's sales for January ($120,000), February ($130,000) and March ($140,000). Based on past collection patterns, management expects the following: A table shows Re - Works Inc's collection patterns in the month of February showing month of sale (10%), month after sale (50%), and the remainder - second month after sale (40%). Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re - Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and…
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
Living Corner sells home wares and various otherreading-related products. One of the store's most popular products is the fluffy pillow. The pillow each sell for $26.00. Originally the pillows were handmade by a local artisan. The store's owner has been impressed with the demand for the pillow and has recently begun a small manufacturing company to produce and distribute the pillow to other stores. Estimated sales for the fourth quarter (in units) are as follows: October 9 500 November 10 200 December 12 600 Total 32 300 Required: a) Prepare a sales budget for the fourth quarter based on the above information. b) Prepare a production budget for the pillow manufacturing company. The company did not have any inventory at the end of September, but they want to maintain a 20 percent inventory at the end of each month based on the next month's sales. January's sales are expected to be low, given the post-holiday trends and are estimated to be 6800 units. c) Explain the benefits of budgeting…
Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts fromvarious suppliers. Consider the following data:• The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles onJanuary 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% atmonth-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension andinsurance costs average $2 per hour (total); additionally, the company pays Social Security taxesthat amount to 8% of gross wages earned.Required:A. How many bicycles does Al-Noor expect to produce (i.e., assemble) in January?B. How many wheels are budgeted to be purchased in January?C. Compute Al-Noor's total direct…
Supreme Bikes Inc. has the following sale for the spring and early summer season. A projection of units sold is as follows: March.................. 2,000 5,000 April....... May... June......... 7,000 6,000 Total 20,000 The company uses a level production to avoid being out of merchandise. He will produce the 20,000 bikes at a level production of 5,000 per month. A. What is the ending inventory at the end of each month? Compare the units so