Budgeted unit sales (all on credit): 9,500 January 9,900 February 10,600 March 12,600 April 3pounds Raw materials requirement per unit of output $5.00per pound Raw materials cost 2.2direct labor-hours Direct labor requirement per unit of output $18.00per direct labor-hour Direct labor wage rate Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should be purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases?
Budgeted unit sales (all on credit): 9,500 January 9,900 February 10,600 March 12,600 April 3pounds Raw materials requirement per unit of output $5.00per pound Raw materials cost 2.2direct labor-hours Direct labor requirement per unit of output $18.00per direct labor-hour Direct labor wage rate Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should be purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
provide the followinf inforamtion to help prepare the master budget for the next four months of opration
Could you solve ( D , E , F and G ) only thanks
Transcribed Image Text:=ket system
My
Budgeted unit sales (all on credit):
9,500
January
9,900
February
10,600
March
12,600
April
Raw materials requirement per unit of output
3pounds
$5.00per pound
Raw materials cost
2.2direct labor-hours
Direct labor requirement per unit of output
$18.00per direct labor-hour
Direct labor wage rate
Credit sales are collected: 40% in the month of the sale & 60% in the following month
Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month
The ending finished goods inventory should equal 10% of the following month's sales.
The ending raw materials inventory should equal 40% of the following month's raw materials production needs.
Required: (LO_5) EXCEL
a. What are the budgeted sales for February?
b. What are the expected cash collections for February?
c. According to the production budget, how many units should be produced in February?
d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should be
purchased in February?
e What is the estimated cost of raw materials purchases for February?
f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash
disbursements for raw materials purchases?
g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match the
hours required to produce the forecasted number of units produced?
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