FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Milo Company manufactures beach umbrellas. The company is preparing detailed 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 remainder of the year (in units): July 30,500 October 20,500 August 71,000 November 7,000 September 40,000 December 7,500 The selling price of the beach umbrellas is $10 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 5% uncollectible Sales for June totaled $200,000. 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 Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50%…arrow_forwardesc Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 4,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times. The pizza is expected to cost $3 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of budgeted purchases for its first quarter. Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 Q A 1 N 2 W S #3 X H E D $ 4 C R 67 dº % 5 F MacBook Pro T V 6 G Y & V lo 7 H B * 00 8 U J N 9 K M Saarrow_forwardJackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square metersarrow_forward
- o Flexible Budgeting) Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,300 units, April 13,900 units, May 16,900 units, and June 21,700 units. Meadow Company's ending finished goods inventory policy is 15% of the following month's sales. March 1 beginning inventory is projected to be 1.545 units. How many units will be produced in March? Multiple Choice 10.300 10.840 13,900 Help Save & Exit Submit 9,760arrow_forwardYoung Co. makes computers. Their goal is to have 20% of next month's sales on hand at the end of each month. Sales budget is shown below: Jan sales, units 20,000 Feb sales, units 39,000 Mar sales, units 40,000 What is the production budget for January (in units)? Enter as a whole number, no commas. Your Answer:arrow_forwardanswer in text form please (without image)arrow_forward
- A local piano distributor is preparing its February purchase budget for pianos and provides the following information: • Budgeted Sales, January: 210 pianos • Budgeted Sales, February: 170 pianos • Budgeted Sales, March: 250 pianos If the distributor always wants to have 20% of the pianos they will need for the next month's sales on hand at the end of each month, how many pianos do they need to purchase in February?arrow_forwardSilver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: Budgeted sales (all on account) From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000. April May June $ 500,000 $ 700,000 $ 240,000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? Complete this question by entering your answers in the tabs below. February sales March sales April sales May sales June sales Total cash collections Required 1 Required 2 Prepare a schedule of expected…arrow_forward
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