Exercise 4-26 Millet Corporation manufactures and sells stuff toys. She is busy with the third and fourth quarters of 2021 at the moment. She asks your help to prepare some of these budgets: The sales budget in units is as follows: Third quarter 45,000 pieces Fourth quarter 70,000 pieces It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. ach stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: 125,000 pieces 15,000 units Boxes Material A Material B 45,000 units There are sufficient boxes on hand for both quarters; none will be purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021. 2. Prepare a purchases budget for Material A and Material B for the third and fourth quarters of 2021. 3. How many boxes will be on hand at the end of the fourth quarter? Millet Corporation Production Budget For the Third & Fourth Quarters of 2021 3rd Quarter 4th Quarter Sales budget Add: Ending inventory Total requirements Less: Beginning inventory Production budget
Exercise 4-26 Millet Corporation manufactures and sells stuff toys. She is busy with the third and fourth quarters of 2021 at the moment. She asks your help to prepare some of these budgets: The sales budget in units is as follows: Third quarter 45,000 pieces Fourth quarter 70,000 pieces It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. ach stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: 125,000 pieces 15,000 units Boxes Material A Material B 45,000 units There are sufficient boxes on hand for both quarters; none will be purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021. 2. Prepare a purchases budget for Material A and Material B for the third and fourth quarters of 2021. 3. How many boxes will be on hand at the end of the fourth quarter? Millet Corporation Production Budget For the Third & Fourth Quarters of 2021 3rd Quarter 4th Quarter Sales budget Add: Ending inventory Total requirements Less: Beginning inventory Production budget
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
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Millet Corporation
Purchases Budget- Material A
For the Third & Fourth Quarters of 2021
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
3d
Quarter
th
4" Quarter
2
Millet Corporation
Purchases Budget- Material B
For the Third & Fourth Quarters of 2021
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
3rd Quarter
4th Quarter
5
Воxes:
Transcribed Image Text:eco
Exercise 4-26
veco
some of these budgets:
veco
The sales budget in units is as follows:
eco
Third quarter
45,000 pieces
Fourth quarter
70,000 pieces
Each stuff toy is packaged in a colorful cardboard box, and contains 2
units of Material A and 5 units of Material B.
The inventory of materials at the beginning of the third quarter will be:
Boxes
125,000 pieces
Material A
15,000 units
45,000 units
Material B
There are sufficient boxes on hand for both quarters; none will be
purchased during the two periods.
eco
Material A can be bought whenever needed and in any quantity desired.
The starting inventory of 15,000 units is considered to be an ideal quantity.
Material B must be purchased in quantities of 10,000 units, or multiples
of 10,000. It is desired that at the end of the third and fourth quarters, a
minimum quantity of 30,000 units be on hand, or as close thereto as the
standard quantity will permit.
REQUIRED:
1. Prepare a production budget for the third and fourth quarters of 2021.
2. Prepare a purchases budget for Material A and Material B for the third and
fourth quarters of 2021.
3. How many boxes will be on hand at the end of the fourth quarter?
Millet Corporation
Production Budget
For the Third & Fourth Quarters of 2021
3rd Quarter
4th Quarter
Sales budget
Add: Ending inventory
Total requirements
Less: Beginning inventory
Production budget
It is that stuff toys are to be at the end
inventory at of the third of 8,000 stuff toys.
third and fourth of at the She asks your help to prepare
of the third and 5,000 pieces at the end of The
Millet stuff toys. She is busy the
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