Al hedaya sells seating chairs. On June 30, there were 150 chairs in ending inventory, and accounts receivable had a balance of $12,000. Sales of seating chairs (in units) have been budgeted at the following levels for the upcoming months: Accounts receivable, June 30 Number of chairs budgeted to be sold in July Number of chairs budgeted to be sold in August Number of chairs budgeted to be sold in September Number of chairs budgeted to be sold in October $12,000 250 420 370 400 The company has a policy that the ending inventory of seating chairs should be equal to 40% of the number of chairs to be sold in the following month. The Outdoor Leisure Store sells the seating chairs for $100 each. The company's collection history shows that 30% of he sales in a month are paid for by customers in the month of sale, while the remainder is ollected in the following month. addition, the selling and administrative expense budget of Al Hedaya is based on the

Al hedaya sells seating chairs. On June 30, there were 150 chairs in ending inventory, and accounts receivable had a balance of $12,000. Sales of seating chairs (in units) have been budgeted at the following levels for the upcoming months: Accounts receivable, June 30 Number of chairs budgeted to be sold in July Number of chairs budgeted to be sold in August Number of chairs budgeted to be sold in September Number of chairs budgeted to be sold in October $12,000 250 420 370 400 The company has a policy that the ending inventory of seating chairs should be equal to 40% of the number of chairs to be sold in the following month. The Outdoor Leisure Store sells the seating chairs for $100 each. The company's collection history shows that 30% of he sales in a month are paid for by customers in the month of sale, while the remainder is ollected in the following month. addition, the selling and administrative expense budget of Al Hedaya is based on the

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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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 1,760 finished surfboards in inventory. Budgeted sales units July 4,400 August 5,500 September 3,300 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget Budgeted sales units Add: Desired ending inventory Desired ending inventory units Total required units Units to be produced July 0 August 0
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