Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policyis to maintain finished goods Inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,600finished surfboards In Inventory.Budgeted sales unitsJuly4,000August5,500September4,200Prepare the production budget for the months of July and August.ATLANTIC SURFProduction BudgetDesired ending inventory unitsTotal required unitsUnits to be producedJulyAugust

Lets understand the basics.Production budget is prepared by the Business Entity to provide for the…

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 1,600 finished surfboards In Inventory. July 4,000 August 5,500 September 4,200 Budgeted sales units Prepare the production budget for the months of July and August. ATLANTIC SURF

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 1,600 finished surfboards In Inventory. July 4,000 August 5,500 September 4,200 Budgeted sales units Prepare the production budget for the months of July and August. ATLANTIC SURF

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information: The Marketing Department estimated unit sales as follows for the remainder of the year:July 33,000 October 23,000August 76,000 November 9,500September 45,000 December 10,000The selling price of the beach umbrellas is $15 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern:30% in the month of sale65% in the month following sale5% uncollectibleSales for June totaled $375,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the…
Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information: The Marketing Department estimated unit sales as follows for the remainder of the year:July 33,000 October 23,000August 76,000 November 9,500September 45,000 December 10,000The selling price of the beach umbrellas is $15 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern:30% in the month of sale65% in the month following sale5% uncollectibleSales for June totaled $375,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the…
Acme Company sells lumber and general building supplies to building contractors. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $330,000 for December, and $310,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 70% of sales. The company desires to have an ending merchandise inventory equal to 70% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,700. Monthly depreciation is $18,000. Ignore taxes.
Kimball Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $24. Kimball projects sales for April will be 2,500 packages, with sales increasing by 200 packages per month for May, June, and July. On April 1, Kimball has 100 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Kimball for April, May, and June. Begin by preparing a sales budget for April, May, and June. Kimball Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales 697 2,500 2,700 24 $ 60,000 $ 64,800 24 $ $ June 2,900 Total 8,100 24 24 $ 69,600 $ 194,400
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
Majan company has budgeted sales in units for the next five months as follows: June 5,400 units July 6,500 units August 7,000 units September 8,200 units October 4,800 units Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 is 400 units. The company needs to prepare a Production Budget for the next five months. The total number of units to be produced in August is a. 7,120 units b. 7,420 units c. 7,170 units d. 8,520 units W P
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 50% of the next month’s unit sales. As of June 30, the company has 1,950 finished surfboards in inventory. July August September Budgeted sales units 3,900 7,400 4,500 Prepare the production budget for the months of July and August.
Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Budgeted sales units. Units to purchase July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales 0 0 0 Total required units Units to purchase Cost per unit Cost of merchandise purchases
Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April May June Total Budgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000 The company estimates 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230, 000, and March sales totaled $260,000. Required: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. What is the accounts receivable balance on June 30th?
answer in text form please (without image)
Harris Inc., has budgeted sales in units for the next five months as follows: June July August September October 9,400 units 7,800 units 7,300 units 5,400 units 4,100 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 1,880 units. The company needs to prepare a production budget for the next five months.
Magnolia Interior décor Industries manufactures wooden dining chairs. The selling price of the wooden dining chairs is $15 per unit. The company is preparing detailed budgets for the third quarter (Third quarter includes July, August and September) and fourth quarter (Fourth quarter includes October, November and December) and has assembled the following information to assist in the budget preparation (see below tables). Sales for June totaled $2,000. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. Calculate the estimated quantity of wooden dining chairs that need to be produced in July. Estimated unit sales for the next several month Month Units July 100 August 200 September 300 October 200 November 200 300 December All sales are on account (i.e., on credit). These sales on account are usually collected in the following pattern: 65% in the month following sale 5% X 130 Correct Answer: 115…