Production budget for match balls:Unit salesDesired ending inventoryTotal neededLess: Beginning inventoryUnits producedFlashKick CompanyProduction Budget - Match BallsFor the First Quarter of Next YearJanuaryXXXXFebruaryXXMarchX Production BudgetFlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Flashkick expects to sell the following:Practice BallsMatch BallsUnitsSelling PriceUnitsSelling PriceJanuary50,000$8.757,000$16.00February56,000$8.758,000$16.00March80,000$8.7513,000$16.00April100,000$8.7519,000$16.00FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 3,200 practice soccer balls and 400 match soccer balls.Required:Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.Production budget for practice balls:FlashKick CompanyProduction Budget - Practice BallsFor the First Quarter of Next YearMarchJanuaryXUnit salesDesired ending inventory✓XTotal neededLess: Beginning inventoryUnits producedProduction budget for match balls:XXFebruaryXXXXXXXXXX

Solution:- Production budget means as follows under:- It is used to calculate the number of units…

Answered: Construct a production budget for each…

Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming 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 does the budgeting process translate long-term goals into operating objectives? Suppose Framecraft has an Information Processing Division that provides database management services for the professional photographers and artists who buy its frames. The division uses state-of-the-art equipment and employs five information specialists. Each specialist works an average of 160 hours a month. The division’s controller has com piled the following information: Actual Data for Past Year Forecasted Data for This Year November December January February March Client billings (sales) $25,000 $35,000 $25,000 $20,000 $40,000 Selling and administrative expenses 12,000 13,000 12,000 11,000 12,500 Operating supplies 2,500 3,500 2,500 2,500 4,000 Processing overhead 3,200 3,500 3,000 2,500 3,500 Of the client billings, 60 percent are cash sales collected during the month of sale, 30 per cent are collected in the first month following the sale, and 10 percent are collected in the second month…
The production department of Headstrong Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,100 9,100 7,100 6,100 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,950 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,490. Each unit requires 3.1 kg of raw material that costs $2.50 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter’s production needs. The desired ending inventory for the fourth quarter is 2,325 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $19.5 per hour. Required: 1-a. Prepare the company's direct…
Create a budget for the following project: Blazer Company plans on purchasing new equipment to retool its manufacturing process. The project will involve the acquisition of equipment, installation of the new equipment, selling off the old equipment and training the workforce on the new equipment and processes. Blazer expects this project to take two years from beginning to end. Costs and expected income for the project are as shown below. Your task is to create a two-year cash budget for the project and compute a return on investment (ROI) for the project. You may ignore the time value of money in your calculation. You may make reasonable assumptions to complete this problem so long as you document them. Facts: a. The equipment to be purchased will cost $455,000. The equipment will be purchased and paid for at the beginning of Year 1. b. Installation cost will be $55,000. c. Blazer will purchase a maintenance contract for the equipment. The first year of maintenance is included in the…
You are given the following budgeted and actual data for the Grey Company for each of the months January through June of the current year. In December of the prior year, sales were forecasted as follows: January, 100 units February, 95 units March, 102 units April, 107 units May, 114 units June, 122 units. In January of the current year, sales for the months February through June were reforecasted as follows: February, 90 units March, 102 units April, 102 units May, 104 units June, 117 units. In February of the current year, sales for the months March through June were reforecasted as follows: March, 97 units April, 102 units May, 99 units June, 117 units In March of the current year, sales for the months April through June were reforecasted as follows: April, 102 units May, 94 units June, 107 units In April of the current year, sales for the months May and June were reforecasted as follows: May, 84 units June, 102 units In May of the current year, sales for June were…
Prepare the direct material budgets for the upcoming five years. The budgets should also include a schedule of expected cash disbursements for purchase of materials, by year and in total. Make your assumptions about the safety stock of materials and the timing of payments clear. Total Raw materials $23 ( Distilled water $2, Rose oil $2, Sandalwood $2, Cedar $2, Musk $8, vanilla $5, Ethyl $1, Methyl $1) Box $10 Bottle $20 Labour $7
Assuming your budgets are stable across the year, how much of your Company's budget do you have left for developing new collateral for the remainder of this month?
Dolson Appliances makes coffee machines for offices and homes. For next year, the production budget is 141,000 units. Beginning inventories will be 18,000 units and the desired ending inventory will be 16,000 units. Required: What is the sales budget for the coming year for Dolson Appliances? Sales budget units
Teletronics is going to introduce a combination phone/tablet product. Design and testing will take 8 months. Teletronics expects to sell 24,000 units during the first 6 months of sales. Sales over the next 12 months are expected to be less robust at 20,000. And, sales in the final 6 months of the expected life cycle are expected to be 9,000. Teletronics is budgeting for this product as follows: LOADING... (Click the icon to view the cost information.) Read the requirements LOADING... . Requirement 1. If Teletronics prices the phone/tablets at $280 each, how much operating income will the company make over the product's life cycle? What is the operating income per unit? Begin by preparing the life cycle income statement in order to determine how much operating income the company will make over the product's life cycle. Projected Life Cycle Income Statement Revenues Variable costs: Months 9-14 Months 15-26…
Fill in the missing cells in the following cash budget. Interpret the values for NCF and the ending cash position. Develop a cash budget for the next two months using the following information: Monthly sales forecasts are $210,000 and $30,000 for the next two months Sales in the current month were $140,000 80 percent of sales are collected in the month of sale, with the remainder collected in the following month Cost of goods sold equal 70 percent o sales The monthly lease payment is $75,000 The cash position at the end of the current month is $70,000 The target cash balance is $40,000
Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account April May June 95,000 69,000 120,000 435,000 484,000 470,000 530,000 553,000 590,000 Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?
Prepare a production budget for the months of April, May, and June.
Merchant Industries is preparing its master budget for 2016. Relevant data pertaining to its sales budget are as follows: Sales for the year are expected to total 8,000,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be $2.00 per unit for the first quarter and then be increased to $2.20 per unit in the second quarter. Instructions Prepare a sales budget for 2016 for Merchant Industries.