Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (UCEOBEI, 2019. October November December Total Expected sales in units Selling price per unit Total sales b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2019. Cash collections from: October November December Total September sales October sales November sales December sales Total cash collections

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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tne following montn. ine accounts payapie for raw material purcnases is expected to be $148,122 on September 30, 2019.
Required:
a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of
2019.
October
November
December
Total
Expected sales in units
Selling price per unit
Total sales
b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2019.
Cash collections from:
October
November
December
Total
September sales
October sales
November sales
December sales
Total cash collections
Transcribed Image Text:tne following montn. ine accounts payapie for raw material purcnases is expected to be $148,122 on September 30, 2019. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2019. October November December Total Expected sales in units Selling price per unit Total sales b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2019. Cash collections from: October November December Total September sales October sales November sales December sales Total cash collections
Freese Inc. is in the process of preparing the fourth quarter budget for 2019, and the following data have been assembled:
• The company sells a single product at a price of $59 per unit. The estimated sales volume for the next six months is as follows:
September 16,900 units
15,600 units
18,200 units
26,000 units
11,700 units
13,000 units
October
November
December
January
February
• All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of
sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of
accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $678,028 on September 30, 2019.
Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's
budgeted sales. The finished goods inventory on September 30, 2019, is expected to be 4,680 units.
• To make one unit of finished product, 5 pounds of materials are required. Management's policy is to havë enough materials on hand
at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 32,760
pounds on September 30, 20019.
• The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in
the following month. The accounts payable for raw material purchases is expected to be $148,122 on September 30, 2019.
Required:
a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of
2019.
October
November
December
Total
Expected sales in units
Transcribed Image Text:Freese Inc. is in the process of preparing the fourth quarter budget for 2019, and the following data have been assembled: • The company sells a single product at a price of $59 per unit. The estimated sales volume for the next six months is as follows: September 16,900 units 15,600 units 18,200 units 26,000 units 11,700 units 13,000 units October November December January February • All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $678,028 on September 30, 2019. Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's budgeted sales. The finished goods inventory on September 30, 2019, is expected to be 4,680 units. • To make one unit of finished product, 5 pounds of materials are required. Management's policy is to havë enough materials on hand at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 32,760 pounds on September 30, 20019. • The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $148,122 on September 30, 2019. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2019. October November December Total Expected sales in units
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