Homework Help is Here – Start Your Trial Now!
Business
Accounting
(a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Coronado Corp. Budgeted Sales Volume (a2) Budgeted Selling Price Budgeted Sales Revenue Collections from January Sales Collections from December 31 A/R Balance Collections from February Sales Collections from March Sales Total Cash Receipts Budgeted Sales Volume Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Add $ Prepare the production budget for Coronado Corp. $ Total Units Needed Less January : Target Ending Units in FG Inventory Budgeted Units to be Produced : Beginning FG Inventory $ $ January February January $ February March February $ Attempts: 0 of 2 used Submit Answer

(a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Coronado Corp. Budgeted Sales Volume (a2) Budgeted Selling Price Budgeted Sales Revenue Collections from January Sales Collections from December 31 A/R Balance Collections from February Sales Collections from March Sales Total Cash Receipts Budgeted Sales Volume Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Add $ Prepare the production budget for Coronado Corp. $ Total Units Needed Less January : Target Ending Units in FG Inventory Budgeted Units to be Produced : Beginning FG Inventory $ $ January February January $ February March February $ Attempts: 0 of 2 used Submit Answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question
The management team at Coronado Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Coronado can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . . . (a1) (a2) In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. Budgeted Sales Volume Budgeted Selling Price Budgeted Sales Revenue Collections from January Sales Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 38 units. Collections from December 31 A/R Balance Collections from February Sales Coronado' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Coronado cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Coronado $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,800. Depreciation of $2,100 is included in that monthly fixed cost. Prepare the Sales forecast (and corresponding schedule of cash receipts) for Coronado Corp. Collections from March Sales SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold, while budgeted fixed monthly SG&A costs are $61,500, which includes $8,000 of depreciation. Total Cash Receipts All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $230,000. Beginning finished goods inventory was held at a cost of $280/unit from the prior year. January 380 Budgeted Sales Volume $ Add $ February Total Units Needed Prepare the production budget for Coronado Corp. Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Budgeted Units to be Produced Less V Beginning FG Inventory Target Ending Units in FG Inventory 440 January March 460 $ $ April 450 $ $ January May 470 February January $ $ $ $ February Attempts: 0 of 2 used March Submit Answer February
Transcribed Image Text:The management team at Coronado Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Coronado can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . . . (a1) (a2) In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. Budgeted Sales Volume Budgeted Selling Price Budgeted Sales Revenue Collections from January Sales Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 38 units. Collections from December 31 A/R Balance Collections from February Sales Coronado' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Coronado cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Coronado $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,800. Depreciation of $2,100 is included in that monthly fixed cost. Prepare the Sales forecast (and corresponding schedule of cash receipts) for Coronado Corp. Collections from March Sales SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold, while budgeted fixed monthly SG&A costs are $61,500, which includes $8,000 of depreciation. Total Cash Receipts All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $230,000. Beginning finished goods inventory was held at a cost of $280/unit from the prior year. January 380 Budgeted Sales Volume $ Add $ February Total Units Needed Prepare the production budget for Coronado Corp. Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Budgeted Units to be Produced Less V Beginning FG Inventory Target Ending Units in FG Inventory 440 January March 460 $ $ April 450 $ $ January May 470 February January $ $ $ $ February Attempts: 0 of 2 used March Submit Answer February
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS