The sales budget for the Vaughn Company indicates the following units to be sold: January February March April 19600 O 5740 O 3920 O 4620 0 0 29000 23100 28700 The company requires that ending inventory be equivalent to 20% of the following month's sales. There were no units on hand at the end of December. What is the budgeted balance in the company's ending inventory account at March 31 expected to be?

The sales budget for the Vaughn Company indicates the following units to be sold: January February March April 19600 O 5740 O 3920 O 4620 0 0 29000 23100 28700 The company requires that ending inventory be equivalent to 20% of the following month's sales. There were no units on hand at the end of December. What is the budgeted balance in the company's ending inventory account at March 31 expected to be?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

See similar textbooks

Similar questions

Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
The inventory policy is to have ending inventory equal to 20% of next month's sales. Desired ending inventory Beginning inventory Budgeted sales June ? ? ? July ? ? ? 240 Budgeted production Compute ending inventory for August ? August ? ? 400 380
The inventory policy is to have ending inventory equal to 20% of next month's sales. Desired ending inventory Beginning inventory Budgeted sales June 208 Ce ? 2. ? July ? ? ? Budgeted production Compute budgeted production for July 240 ? August ? ? 400 380
ABC Company has prepared a unit sales budget for the upcoming months as follows: Month Units Month Units January. 5,000 June, 30,000 February. 7,500 July 35,000 March. 10,000 August.. 25.000 April. 15,000 September. 10,000 May. 20,000 October. 6,000 ABC has a policy to maintain ending inventory levels equal to 30% of the coming month's sales requirements. Inventory on January 1 is projected to be 1,200 units. Required: Fill-in the missing amounts in the production budget of ABC Company for the next six months. ABC Company Production Budget January 5,000 February 7,500 March April 15,000 May 20,000 June Sales. 10,000 30,000 Ending inventory . 9.000 Total needs. 10,500 14.500 21,000 29,000 40,500 Less: Beginning inventory.. 1.200 Units to be produced. 6.050 11,500
Cranes, Inc. provided the following budgeted information for March through July: Projected sales Projected merchandise purchases Inventory at end of month March April May July $85770 $100860 $94300 $108240 $115950 $67240 $59860 $9840 O $4995. O $6890. O $5250. O $3675. $75770 $61750 $11150 $9270 June $54610 $10170 $11730 Cranes estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $25420 per month of which depreciation is $25420 of this amount. Crane pays operating expenses in the month incurred. The income tax rate is 30%. How much is budgeted net income for May?
product line manufactured by Boots Styles, Inc. be met by Jan. 1. No work is in process at the end of each month. A sales budget for the first five months of 2021 is given c 20% of the sales estimate for the next month. This requirement is expected to on a certain Sales budget in units January 157,000 162,000 204,000 223,000 245,000 February March April Мay The inventory of finished products at the end of each month is equal to Each unit of product requires two types of raw materials as follows: Material A 2 unit Material B 6 units The estimated cost of Material A is P5.00 per unit, and the estin cost of MaterialB is PO.60 per unit. Materials equal to 30% of next month's production needs are to be on hand at the end of each month. This requirement is expected to be met on Jan. 1. REQUIRED: 1. Prepare a production budget for the first quarter of 2021 broken down by months. Include a total column. 2. Prepare a purchases budget for each type of raw materials also for the first quarter of…
ABC Farm is preparing a collection budget for the year. Sales are expected to be P100,000 in January; P200,000 in February; and P300,000 in March. Approximately 60% of the sale is collected during the month of sale and the other 40% is collected in the following month. What is the ending accounts receivable balance of March? P 80,000 P120,000 P180,000 P200,000 Group of answer choices 1 2 3 4
A merchanding company reported the information below from its March master budget: Cost of goods sold Cash paid for merchandise purchases Selling and administrative expenses $79,100 $74,200 $34,100 Cash paid for selling and administrative expenses Retained earnings, March 1 $26,900 $19,200 Retained earnings, March 31 $25,400 If the company does not plan to declare a dividend or incur any interest in the month, what is its budgeted sales for March? Ignore taxes. Multiple Choice $1,000 $119,400 $101,900
A company is preparing the production budget for the second quarter Projected sales (in units) are as follows: April- 600 Units May- 680 units June-750 units The company policy is to have finished goods stocks (closing inventory) of 10% of the next month's projected sales. Assuming that there was no opening stock for April, what should be the production quota for May? Select one: a. None of the options b. 680 units c. 687 units d. 694 units
Ruiz Co. provides the following sales forecast for the next four months. April May June July Sales (units) 500 580 540 620 The company wants to end each month with ending finished goods inventory equal to 25% of next month’s forecasted sales. Finished goods inventory on April 1 is 190 units. Prepare a production budget for the months of April, May, and June.
At the beginning of the period, the Fabricating Department budgeted direct labor of $70,000 and equipment depreciation of $36,000 for 5,000 hours of production. The department actually completed 6,300 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.