MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales Budget is prepared using a budgeted sales price per unit agreed upon at the beginning of the year. To help in the Production budget preparation, the following information are given: 1. Inventories at the end of 2019 can be sold for a total of P225,000 at a sales price of P250 per unit. 2. Production runs are only done at the start of each quarter. 3. A minimum of 200 units are to be maintained at the end of each quarter to serve as buffer stocks. 4. Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. 5. It is forecasted that the same quantities will be sold per month of each quarter. 6. It is estimated that quantities sold will increase by 500 units at the start of each quarter. 7. MORGAN Merchandising estimates a gross profit rate of 35%. What is the beginning inventory for March 2020? A 200 В 1,700 1,500

MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales Budget is prepared using a budgeted sales price per unit agreed upon at the beginning of the year. To help in the Production budget preparation, the following information are given: 1. Inventories at the end of 2019 can be sold for a total of P225,000 at a sales price of P250 per unit. 2. Production runs are only done at the start of each quarter. 3. A minimum of 200 units are to be maintained at the end of each quarter to serve as buffer stocks. 4. Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. 5. It is forecasted that the same quantities will be sold per month of each quarter. 6. It is estimated that quantities sold will increase by 500 units at the start of each quarter. 7. MORGAN Merchandising estimates a gross profit rate of 35%. What is the beginning inventory for March 2020? A 200 В 1,700 1,500

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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MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales Budget is prepared using a budgeted sales price per unit agreed upon at the beginning of the year. To help in the Production budget preparation, the following information are given: 1. Inventories at the end of 2019 can be sold for a total of P225,000 at a sales price of P250 per unit. 2. Production runs are only done at the start of each quarter. 3. A minimum of 200 units are to be maintained at the end of each quarter to serve as buffer stocks. 4. Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. 5. It is forecasted that the same quantities will be sold per month of each quarter. 6. It is estimated that quantities sold will increase by 500 units at the start of each quarter. 7. MORGAN Merchandising estimates a gross profit rate of 35%. What is the beginning inventory for March 2020? А 200 В 1,700 c) 1,500 D
MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales Budget is prepared using a budgeted sales price per unit agreed upon at the beginning of the year. To help in the Production budget preparation, the following information are given: Inventories at the end of 2019 can be sold for a total of ₱225,000 at a sales price of ₱250 per unit. Production runs are only done at the start of each quarter. A minimum of 200 units are to be maintained at the end of each quarter to serve as buffer stocks. Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. It is forecasted that the same quantities will be sold per month of each quarter. It is estimated that quantities sold will increase by 500 units at the start of each quarter. MORGAN Merchandising estimates a gross profit rate of 35%. What is the beginning inventory for January 2020? 200 0 1,385 900
NUBD Company has budgeted its activity for October 2021 based on the following information:i. Sales are budgeted at P300,000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 3% of sales. ii. Merchandise inventory was P70,000 at September 30, 2021 and an increase of P10,000 was planned for the month. iii. All merchandise is marked-up to sell at invoice cost plus 50%. (Gross profit rate based on cost) iv. Estimated cash disbursements for selling and administrative expenses for the month are P40,000. v. Depreciation for the month is projected at P5,000. NUBD is projecting operating income for the month of October 2021 in the amount of A. P96,000 B. P56,000 C. P55,000 D. P46,000
NUBD Company has budgeted its activity for October 2021 based on the following information:i. Sales are budgeted at P300,000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 3% of sales. ii. Merchandise inventory was P70,000 at September 30, 2021 and an increase of P10,000 was planned for the month. iii. All merchandise is marked-up to sell at invoice cost plus 50%. (Gross profit rate based on cost) iv. Estimated cash disbursements for selling and administrative expenses for the month are P40,000. v. Depreciation for the month is projected at P5,000. NUBD is projecting operating income for the month of October 2021 in the amount of P96,000 P56,000 P55,000 P46,000
MORGAN Merchandising is preparing its Sales Budget for the 3rd Quarter of 2020 based on a budgeted sales price agreed upon at the beginning of the year. To help in the budget preparation, the following information are given: (a) Budgeted sales revenue for the 1st month of 2020 amounted to 375,000. (b) Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. (c) It is forecasted that the same quantities will be sold per month of each quarter. (d) It is estimated that quantities sold will increase by 500 units on the first month of each quarter from the quantities sold of the previous month. What is the budgeted sales revenue for the 3rd quarter? P625,000.00 P1,875,000.00 P1,125,000.00 94,500,000.00
Sunland Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected.Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service.Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $93,620; December 2019, $83,630; January 2020, $102,120; February 2020, $123,950; and March 2020, $133,630.Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $16,410; January 2020, $13,540; February 2020, $18,970; and March 2020, $23,150.(a)Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:(1) Expected collections…
B. Mahmoud Repair Company is preparing its budget for the first quarter of 2021. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2021 are: November 2020, $120,000; December 2020, $110,000; January 2021, $140,000; February 2021, $160,000; March 2021, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2020 and expected purchases for 2021 are: December 2020, $21,000; January 2021, $20,000; February 2021, $22,000; March 2021, $27,000. Instructions (a) Prepare the following schedules for each month in the first quarter of 2021 and for the quarter in total: (1)…
Cali Industries prepares budgets to help manage the company. Cali is budgeting for the fiscal year ended January 31, 2021. During the preceding year ended January 31, 2020, sales totaled $9,400 million and cost of goods sold was $6,100 million. At January 31, 2020, inventory was S1,600 million. During the upcoming year, suppose Cali expects cost of goods sold to increase by 10%. The company budgets next year's ending inventory at $1,900 million. Read the reguirement. ..... How much inventory (in millions) should the company purchase during the upcoming year to reach its budget? Requirement 1. One of the most important decisions a manager makes is how much inventory to buy. How much inventory should Cali purchase during the upcoming year to reach its budget? Print Done
B) The data collected from the sales budget for the first five months of 2020 is given for a particular product of Al Salam Corporation. As below. Months January February March April May Sales Budget (Units) 11,300 14,700 16,700 18,400 13,200 Consider the following information: The inventory of finished product at the end of each month is to be equal to 25% of the sales estimated for the next month. On January1, 2020, there were 5,000 units of production on hand. No work in progress at the end of any month. Each product requires two types of materials in following quantities. Material X: 4 Units and Material Y: 5 Units. Materials equal to one half of the next month’s production are to be in hand at the end of each month. This requirement was met on January, 2010. Prepare a budget showing quantities of each type of materials to be produced each month for the first quarter of 2010.
(B) The data collected from the sales budget for the first five months of 2020 is given for a particular product of Al Salam Corporation. As below. Months January February March April May Sales Budget (Units) 11,300 14,700 16,700 18,400 13,200 Consider the following information: Each product requires two types of materials in following quantities. Material X: 4 Units and Material Y: 5 Units. Materials equal to one half of the next month’s production are to be in hand at the end of each month. This requirement was met on January, 2010. Prepare a budget showing quantities of each type of materials to be produced each month for the first quarter of 2010.
ABC Corporation has estimated the following information for first quarter of 2020 for one of its products: January February March Units to be produced 128,000 140,000 152,000 Desired ending inventory of finished goods 30,000 36,000 38,000 The ending inventory at December 2019 was 28,000 units. Required: Prepare the Production Budget and the Sales Budget for the first quarter of 2020, assuming selling price per unit is $20.
Styles Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31st December 2019 Months Sales Materials Wages ( OMR) Over heads (OMR) (OMR) (OMR) August September October 20000 10200 3800 1900 21000 10000 3800 2100 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1.. Sales /Debtors 10% sales are on Cash, 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors- materials 2 months Wages 1 month -1 month Overheads 3. Cash balance on 1st October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1* December 2019 6. Advance to be received for the sale of vehicles RO.20000in December 7. Income tax to be received in December RO.5000