Brinso Supply Corporation manufactures and sells cotton gauze Expected sales of gauze (in boxes) for upcoming months are asfollows:JuneJulyAugustSeptemberOctoberNovemberDecember40,25034,70043,15035,25038,70040,60041,250Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales.Required:Prepare the company's production budget for the third quarter of this year.

Name: Brinso Supply Corporation manufactures and sells cotton gauze Expecte
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Brinso Supply Corporation manufactures and sells cotton gauze Expected sales of gauze (in boxes) for upcoming months are asfollows:JuneJulyAugustSeptemberOctoberNovemberDecember40,25034,70043,15035,25038,70040,60041,250Management likes to maintain a

The budget is prepared to estimate the requirements for the future period. The production budget is…

Business

Accounting

Brinso Supply Corporation manufactures and sells cotton gauze Expected sales of gauze (in boxes) for upcoming months are as follows: 40,250 34,700 43,150 June July 35,250 August September October November 38,700 December 40,600 41,250 Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Required: Prepare the company's production budget for the third quarter of this year.

Brinso Supply Corporation manufactures and sells cotton gauze Expected sales of gauze (in boxes) for upcoming months are as follows: 40,250 34,700 43,150 June July 35,250 August September October November 38,700 December 40,600 41,250 Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Required: Prepare the company's production budget for the third quarter of this year.

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

How do I prepare the selling and administrative expense budget for the quarter ended March 31, 20X1?
Weller Industrial Ges Corporation supplies acetylene and other compressed geses to industry. Dets regarding the store's operations follow: Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 for January Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 76% of sales. The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $20, 600. Monthly depreciation is $20,400. Ignore taxes Balance Sheet October 31 Assets Cash $ 21,400 Accounts receivable 82,400 Merchandise inventory 182,400 Property, plant and equipment (net of $590,000 accumulated depreciation) 1,000,000 Total assets $1,286, 200 Liabilities and Shareholder's Equity Accounts payable $ 195,400 Common shares 550,000 Retained earnings 540,800 Total liabilities and…
ABC produces Goods for resale at throughout America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prioryear quarterly sales were as follows;First quarter 14,000 unitsSecond quarter 6,000 unitsThird quarter 8,000 unitsFourth quarter 4,000 unitsUnit sales are expected to increase 20 percent, and each unit is expected to sell for $1. The management prefers to maintain ending finished goods inventory equal to 10 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. The beginning inventory was 1000 units. Direct Materials Purchases Budget InformationEach unit of product requires 1.5 pounds of direct materials per unit, and the cost of direct materials is $1 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter’s materials needed in production.…
The following are the sales forecast of Avril Furniture Company for the upcoming fiscal year: Year 2 Year 3 Quarter 1 10,000 Quarter 3 15,000 Quarter 2 Quarter 4 23,000 Quarter 1 30,000 Budgeted unit sales Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarter's sales in units. The company expect to start the first quarter with 4,000 units. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. Fourth quarter ending of materials is estimated as 8,000 pounds and a total of 12,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Required: a. Prepare a production budget showing the number of units to be produced each quarter and for the year in totak proď th. b. Prepare Avril's Direct Material Budget and calculate direct…
Victor Inc. has just received its sales and expense report for December, which follows. Item Amount Sales commissions $250,000 Sales staff salaries 100,000 Telephone and mailing 30,000 Building lease payment 60,000 Heat, light, and water 15,000 Packaging and delivery 30,000 Depreciation 25,000 Marketing consultants 10,000 Sales 600,000 You have been asked to develop budgeted costs for the coming year. Since this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: • Sales volume is expected to increase by 20 percent. • Sales prices are expected to decrease by 10 percent. • Commissions are based on a percentage of selling price. • Sales staff salaries will increase 8 percent next year regardless of sales volume. • Building rent is based on a five-year lease that expires in three years. • Telephone and mailing costs are scheduled to decrease by 5 percent even with no change in sales volume.…
The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,800 12,800 14,800 13,800 Budgeted unit sales The selling price of the company's product is $17 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $71,800. The company expects to start the first quarter with 1,770 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,970 units. Required: 1. Calculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections…
3) Ehrlich Manufacturing Corporation manufactures and sells wooden puzzles. Expected puzzle sales at Ehrlich (in units) for the next three months are as follows: January February March budgeted unit sales: 27,000 25,000 30,000 Ehrlich likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many puzzles should Ehrlich plan on producing during the month of February? Show your calculations.
answer?
Answer the questions from the information provided. 2.1 Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August. INFORMATION The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each month equal to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales. 2.2 Study the information provided below and calculate the expected value of closing inventory as at 31 December 2022, if the FIFO method of inventory valuation is used. INFORMATION The following information was supplied by Sunbeam Manufacturers for 2022 in respect of its finished goods: R Inventory on 01 January 640 000 Cost of production of finished goods manufactured 570 000 Cost of goods sold 435 000 Sales value of the goods sold…
The cost of the direct material that should be purchased in August is:
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
The marketing department of IKEA Inc. has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 7,000 6,000 10,000 8,000 The company expects to start the first quarter with 1,500 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,100 units. Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per labor hour. The variable portion of its predetermined manufacturing overhead rate is $ 4 per direct labor-hour and its total fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $8,000 per quarter. The company’s variable selling and administrative expense per unit is $7.50. Fixed selling and administrative expenses include…