Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 62,000 80,000 102,000 86,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 6,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited, Production Budget April May June Quarter 0 0 0 о 0 0 0

Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 62,000 80,000 102,000 86,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 6,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited, Production Budget April May June Quarter 0 0 0 о 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7.7 Good Job Oil Company was preparing its sales budget for the first quarter of coming year. Forecasted sales are, in thousands: anu P180,000 210,000 270,000 den) an Sales are 20% cash and 80% on credit. Fifty percent (50%) of the credit accounts collected in the month of sales, 40% in the month following the sale, and 10% in the followi month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of i coming year are P96 million (10% x November credit sales of P200 million and 50% of Decemie January February March lo tinom plse HA credit sales of P152 million). 0 Instructions:l ierOS nnieud noit o anibliud sdoni al lanoitsmsini adale Prepare a schedule showing sales and cash collections for January, February, and Ma of the coming year.o gniwollo bieq na bing ge
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10 Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) 100,000 105,000 103,000 107,000 September October November December The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: $520,000 $535,000 $522,000 $516,500
Q1 Bellmore Limited is ready to begin its third quarter in which peak sales occur and will have a cash opening balance of R22 250 on 1 July. Actual sales for the last two months and budgeted sales for the quarter are as follows; May (actual) R125 000 June (actual) R150 000 July (actual) R200 000 August (budgeted) R300 000 September (budgeted) R160 000 old records shows the following: 25% of a month’s sales collected in the month of sale 70% in the month following the month of sale 3% in the second month following the month of sale The remainder is irrecoverable The budgeted material purchases and expenses for the third quarter are as follows: July August September R R R Material purchases 170 000 175 000 87 500 Salaries and wages 22 500 20 000 20 000 Advertising 45 000 35 000 40 000 Rent paid 4 500 4 500 4 500 Depreciation 5 000 5 000 5 000 Material purchases are paid in full…
Exercise 8-4 (Algo) Direct Labor Budget [LO8-5] The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,600 8,500 Units to be produced 7,000 11,100 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost 1st Quarter Rordan Corporation Direct Labor Budget 2nd Quarter 3rd Quarter 4th Quarter Year
Exercise 8-2 Production Budget [LO8-3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 88,000 90,000 128,000 99,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 15% of the following month's unit sales. The inventory at the end of March was 13,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Down Under Products, Ltd., Production Budget April May June Quarter Budgeted unit sales Add: Desired units of ending finished goods inventory 88,000 90,000 128,000 306,000 13,500 19,200 14,850 Total needs 101,500 109,200 142,850 306,000 Less: Units of beginning finished goods inventory (13,200) (13,500) (19,200) Required production in units 88,300 95,700 123,650 306,000
& EXIT Submit Questions #1 Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units 50,000 April May 75,000 June 90,000 July 80,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. (Australia's currency is the Australian dollar.) Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total. DOWN UNDER PRODUCTS, LTD. Production Budget April May June Quarter Total needs
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QUESTION 9 Garfield Corp. expects to sell 1040 units of its pet beds in March and 1960 units in April. Each unit sells for $78. Garfield's ending inventory policy is 20 percent of the following month's sales. Garfield pays its supplier $22 per unit. What is Garfield's budgeted purchases for March? AZ
EXERCISE 8-14 Sales and Production Budgets LO8-2, LO8-3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 12,000 14,000 13,000 The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each…