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 b 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% 5% X 130 Correct Answer: 115 in the month following sale Uncollectible 4

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 b 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% 5% X 130 Correct Answer: 115 in the month following sale Uncollectible 4

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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