FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Scora, Inc., is preparing its
January | February | March | ||||
Sales in units | 1,500 | 2,900 | 1,300 | |||
Prepare a sales budget for the months of January, February, and March.
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- Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,64O. finished surfboards in inventory. September August 6,400 July Budgeted sales units 4,100 4, 300 Prepare the production budget for the months of July and August. ATLANTIC SURE Production Budget July August Add: Desired ending inventory Total required units Units to be producedarrow_forwardRuiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 153 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units. April 510 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Budgeted beginning inventory units Total required units Units to produce May 590 RUIZ COMPANY Production Budget April June 540 590 30% July 630 May 540 30% June 630 30%arrow_forwardABC Company’s budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,840 units. Required: Calculate the number of units to be produced in June and July.arrow_forward
- Tyler Company budgets the following unit sales for the next four months: April, 3,800 units; May, 4,600 units; June, 6,900 units; and July, 2,800 units. The company's policy is to maintain finished goods inventory equal to 30% of the next month's unit sales. At the end of March, the company had 1,140 finished units in inventory. Prepare a production budget for each of the months of April, May, and June. Next period budgeted sales units Desired ending inventory units Total required units Units to produce TYLER COMPANY Production Budget April % May % June %arrow_forwardGalina, Inc. has prepared the following direct materials purchases budget. Budgeted DM Purchases Month June July August $68,000 74,500 76,600 September October 79,600 70,600 All purchases are paid for as follows: 10% in the month of purchase, 40% in the following month, and 50% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October. A. $63,540 B. $75,100 OC. $39,800 D. $103,340arrow_forwardXYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $45. Budgeted unit sales for July. August, September, October and November are 1,400 units, 2.100 units, 3,400 un 2.700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to: Select one: O a. $96,750 O b. None of the given answers O c $154,000 O d. $140,000 O e. $126.000arrow_forward
- Harden, Incorporated, has budgeted sales in units for the next five months as follows: June July August September October 9,000 units 7,300 units 9,100 units 8,800 units 6,900 units Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,800 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be: Multiple Choice 1,800 units 1,760 units O 1,820 units 1,380 unitsarrow_forwardFrambosa Limited is currently preparing budgets for September to December. Its estimated sales figures in units are as follows: September October November December Sales (units) 10,845 4,252 5,480 18,759 Inventories at 31 August totalled 16,358 units, and inventories are to be kept at a constant level for all months except December, when opening inventories on 1 December are to be increased to 20,182. Inventories will revert to the normal level on 31 December. Inventories will cost £2 per unit throughout the period, and suppliers allow Frambosa Ltd to pay in the month following an order. Other relevant information is that 12,060 units were bought in August. Requirement 1: Prepare Frambosa Ltd's inventories budget (in units) for September to December. Requirement 2: Prepare the information relevant to inventories purchases that would appear in the cash budget for the period. Requirement 1: Frambosa Ltd's inventories budget (in units) is…arrow_forward
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