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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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 alt="June 30
September 30
84,650 feet
? feet
e. Glden costs $0.60 per foot. One-half of a month's purchases of Gilden is pald for In the month of purchase; the remalnder Is pald
for In the following month. The accounts payable on July 1 for purchases of Glden during June will be $43,890.
Requlred:
1. Calculate the estimated sales, by month and In total, for the third quarter.
2. Calculate the expected cash collections, by month and in total, for the third quarter.
3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
4. Calculate the quantity of Glden (in feet) that needs to be purchased by month and in total, for the third quarter.
5. Calculate the cost of the raw material (Glden) purchases by month and in total, for the third quarter.
6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and In total, for the third quarter.
Complete this question by entering your answers In the tabs below.
Req 1
Req 2
Req 3
Req 4 and 5
Req 6
Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
July
August
September Quarter
Total cash disbursements
( Req 4 and 5
Reg>
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Transcribed Image Text:June 30
September 30
84,650 feet
? feet
e. Glden costs $0.60 per foot. One-half of a month's purchases of Gilden is pald for In the month of purchase; the remalnder Is pald
for In the following month. The accounts payable on July 1 for purchases of Glden during June will be $43,890.
Requlred:
1. Calculate the estimated sales, by month and In total, for the third quarter.
2. Calculate the expected cash collections, by month and in total, for the third quarter.
3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
4. Calculate the quantity of Glden (in feet) that needs to be purchased by month and in total, for the third quarter.
5. Calculate the cost of the raw material (Glden) purchases by month and in total, for the third quarter.
6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and In total, for the third quarter.
Complete this question by entering your answers In the tabs below.
Req 1
Req 2
Req 3
Req 4 and 5
Req 6
Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
July
August
September Quarter
Total cash disbursements
( Req 4 and 5
Reg>
< Prev
8 of 8
Next>
Maciook
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FS
FIO
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 alt="Check m
Milo Company manufactures beach umbrellas. The company is preparing detalled budgets for the third quarter and has assembled the
following Information to assist in the budget preparation:
a. The Marketing Department has estimated sales as follows for the remalnder of the year (In units):
25,500
July
August
September 50,000
October
81,000 November 12,000
December 12,500
35,500
The selling price of the beach umbrellas is $14 per unit.
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
30 in the month of sale
65 in the month following sale
58 uncollectible
Sales for June totaled $420,00.
c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the
end of June.
d. Each beach umbrella requires 4 feet of Glden, a material that is sometimes hard to acquire. Therefore, the company requires that
the ending inventory of Gilden be equal to 50% of the following month's production needs. The Inventory of Gilden on hand at the
beginning and end of the quarter will be:
84,650 feet
2 feet
June 30
September 30
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Transcribed Image Text:Check m
Milo Company manufactures beach umbrellas. The company is preparing detalled budgets for the third quarter and has assembled the
following Information to assist in the budget preparation:
a. The Marketing Department has estimated sales as follows for the remalnder of the year (In units):
25,500
July
August
September 50,000
October
81,000 November 12,000
December 12,500
35,500
The selling price of the beach umbrellas is $14 per unit.
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
30 in the month of sale
65 in the month following sale
58 uncollectible
Sales for June totaled $420,00.
c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the
end of June.
d. Each beach umbrella requires 4 feet of Glden, a material that is sometimes hard to acquire. Therefore, the company requires that
the ending inventory of Gilden be equal to 50% of the following month's production needs. The Inventory of Gilden on hand at the
beginning and end of the quarter will be:
84,650 feet
2 feet
June 30
September 30
< Prev
8 of 8
Next>
411
『ア
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9.
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Expert Solution
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- Assume a merchandising company's estimated sales for January, February, and March are $107,000, $ 127,000, and $117,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month's cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the company's cash budget for February? Multiple Choice $68,280 $65, 280 $71,280 $70,280arrow_forwardA merchandiser plans to sell 12,100 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense Cost Formula $60 per unit sold. $150,000 per month $70,000 per month. $100,000 per month +$10 per unit sold $50,000 per month. 5% of sales $15,000 per month What is the estimated total contribution margin for next month?arrow_forwardWeisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of Quarter 1 is $27,200. What is the amount of the expected disbursements for Quarter 2 given the following expected quarterly sales? Quarter 1: $ 74,000 Quarter 2: $ 115,000 Quarter 3: $ 107,000 Quarter 4: $ 116,000arrow_forward
- Assume a manufacturing company,s estimated sales for january,febuar and march are 1,00,000 , 1,20,000 , 1,10,000 respectively.the cost of goods sold is always 40 % of its sales.the company always maintains ending merchandise inventory equal to 10%of next motn cost of goods sold.it pays for 25% of its merchandise purchase in the month of the purchase and remaining 75%in the subsequent month .What is the account payable balance at the end of febuary? please proper explantion thnxarrow_forwardSioux 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?arrow_forward69) Western Company expects the following credit sales for the first five months of the year: January, $43,000; February, $58,000; March, $48,000; April, $54,000, May $58,000. Experience has shown that payment for the credit sales is received as follows: 60% in the month of sale, 25% in the first month after sale, 10% in the second month after sale, and the remainder is uncollectible. How much cash can Western Company expect to collect in March as a result of credit sales (current and past)? A) $28,800. B) $42,600. C) $48,000. D) $47,600. E) $41,100.arrow_forward
- mni.3arrow_forwardkau.2arrow_forwardDynamic Futon forecasts the following purchases from suppliers: Jan. Feb. Mar. Apr. May Jun. Value of goods ($ millions) 33 29 26 23 21 21 a. Fifty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of one month. If Dynamic Futon starts the year with payables of $23 million, what is the forecasted level of payables for each month? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) b. Suppose that from the start of the year the company stretches payables by paying 50% after one month and 30% after two months. (The remainder continue to be paid cash on delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)arrow_forward
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