Shaw Corporation makes one product and has provided the followinginformation to help prepare the master budget for the next four months ofoperations:Budgeted selling price per unitBudgeted unit sales (all on credit):JanuaryFebruaryMarchAprilSO $544,500O $907,500O $605,000O $363,000Credit sales are collected:40% in the month of the sale60% in the following monthThe budgeted accounts receivable balance at the end of February is closest to:1217,0007,50011,90014,900

Sales budget is the first budget to be prepared. Once the sales budget is prepared the schedule for…

Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April O$544,500 O $907,500 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: O $605,000 S $262.000 121 7,000 7,500 11,900 14,900

Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April O$544,500 O $907,500 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: O $605,000 S $262.000 121 7,000 7,500 11,900 14,900

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

The budget components for Bramble Company for the quarter ended June 30 appear below. Bramble sells recycling bins for $14 each. Budgeted production for the next three months is: April May June 29,000 units 25,000 units 45,500 units Bramble desires to have recycling bins on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Bramble had 3,700 bins on hand. Five pounds of plastic are required for each recycling bin. At the end of each month, Bramble desires to have 10 percent of the following month's direct material needed for production on hand. At March 31, Bramble had 12,500 pounds of plastic on hand. The direct materials used in production cost $0.50 per pound. Each recycling bin produced requires 0.10 hours of direct labor. Compute the budgeted dollar value of the ending direct materials inventory at the end of May. Cost of ending inventory $
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two…
Michard Corporation makes one product and it provided the following Information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. b. Regarding credit sales, 20% are collected in the month of the sale and 80% In the following month. c. The ending finished goods Inventory equals 20% of the following month's sales. d. The ending raw materials Inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound. e. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% In the following month. f. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours. g. The variable selling and administrative…
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations The budgeted selling price per unit is $110. Budgeted unit sales for January February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit b. Regarding credt sales, 30% are collected in the month of the sale and 70% in the following month c. The ending finished goods inventory equals 30% of the following month's sales The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 26 direct laber-hours 9 Manufacturing overhead is entirely variable and is f…
Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.40 per pound. e. Twenty five percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is…
Kuzma Foods, Inc. has budgeted sales for June and July at $680,000 and $765,000, respectively. Sales are 80% credit, of which 60% is collected in the month of sale and 40% is collected in the following month. What is the budgeted Accounts Receivable balance on July 31? OA. $306,000 OB. $217,600 OC. $612,000 OD. $244,800
Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20.000, and 21,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. 1. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administative expense per unit sold is $1.90. The…
The following information applies to questions 25 and 26 The sales budget for Fred Limited contains the following information: October November December Units 300 550 700 $ (thousands) 75,000 165,000 210,000 Sales are all on credit, with 30% collected in the month of sale and 70% in the following month. Finished goods inventory at the end of each month should be 58% of the following month's sales requirements. Prepare a finished goods inventory budget and use it to answer Following Calculate the closing finished goods inventory, in units, for October. Calculate the required production, in units, for October.
Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 97 Budgeted unit sales (all on credit): January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month 10,000 12,000 13,300 15, 200 The budgeted required production for February is closest to: 4 pounds $ 1.00 per pound 2.5 direct labor-hours $23.00 per direct labor-hour $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month The ending finished goods inventory should equal 30% of the following…
Galina, Inc. has prepared the following direct materials purchases budget. Budgeted DM Purchases Month June July August $68,000 74,500 76,600 September October 79,600 70,600 All purchases are paid for as follows: 10% in the month of purchase, 40% in the following month, and 50% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October. A. $63,540 B. $75,100 OC. $39,800 D. $103,340
During June, Tarras Corporation plans to serve 46,000 customers. The company uses the following revenueand cost formulas in its budgeting, where Q is the number of customers served. Revenue:$4.40Q Wages and salaries:$34,600 + $1.67Q Supplies:$0.87Q Insurance:$15,000 Miscellaneous expenses:$5,600 + $0.57Q Required:Prepare the company's planning budget for June. Show all your calculations and you may round youranswers to the nearest dollar.
Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.30.…