Accounting Artifacts is a business created to sell lifesize abaci. Below are details regarding the budgetary assumpts for quarter three. Month July August September October ABCDwu Complete the following instructions: A. B. C. D. E. F. Office Salaries $35,000/month Sales price per unit is $180 Plans are to have an inventory of finished product equal to 20% of the unit sales for the next month. There was 4,000 units in beginning inventory on July 1st. Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30% of the needs for the next month. Desired ending inventory for September is 25,200 pounds of material. Beginning inventory for July was 20,700 pounds of material. Each unit requires 0.6 hours of direct labor and the average wage rate is $16 per hour. Variable overhead rate is $3.50 per direct labor hour. There is also fixed overhead of $22,000 per month. Cost of goods sold is $72.50 per unit The balance in common stock was $3 million at the beginning of the quarter. The balance in retained earnings was $1,634,442 at the beginning of the quarter. Accounts receivable had a beginning balance of $1,200,000. Seventy percent of sales are collected in the month of sale and 30 percent are collected in the following month. Accounts payable had a beginning balance of $900,000. Forty percent of purchases are paid for in the month of purchase and 60 percent are paid for the following month. Cash had a beginning balance of $2,000,000 on July 1. The company pays a 3% commission on sales. The company issued an additional $57,600 in common stock during the period. Company has fixed selling and administrative expenses as follows: Rent $6,000/month Utilities $1,200/month Advertising $400/month Prepare a sales budget and schedule of expected cash follections for the quarter. Prepare a production budget for the quarter. Unit Sales 20,000 35,000 25,000 30,000 Prepare a direct labor budget in hours and total cost for the quarter. Prepare a manufacturing overhead budget for the quarter. Prepare a selling and administrative expense budget for the quarter. Prepare a direct materials budget in pounds and dollars for the quarter and schedule of expected cash disbursements.

Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.

Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.

Alyssum, Inc., a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb Purchases on account $262,000 $294,000 March $360,000 The vendors have required the following terms of payment Month of purchase First month after the purchase Second month after the purchase 30% 35% 35% Calculate the total payment on account for the month of March. O A. $360,000 OB. $180,030 OC. $136,220 OD. $302,600 13

Prepare a master budget for the three-month period ending June 30 that includes a merchandise purchases budget in units and in dollars. Show the budget by month and in total. (Round unit cost to 2 decimal places.)

Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows:   OctoberNovemberDecemberCash sales$ 60,000$ 55,000$ 75,000Credit sales60,00066,00082,500Total$ 120,000$ 121,000$ 157,500     Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.   Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are…

Kent Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000. For Kent Company, the ending accounts payable should be: Select one: O A. $341,000 B. $414,000 C. $264,000 D. $356,000

You are provided with the following information for Keon Company. You are asked to assist " ahe budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms 10,000 kilograms Expected 31 December inventory (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply show the nearest whole number for all values. (b) Prepare the direct materials payment…