Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 62,000 80,000 102,000 86,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 6,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited, Production Budget April May June Quarter 0 0 0 о 0 0 0

Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 62,000 80,000 102,000 86,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 6,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited, Production Budget April May June Quarter 0 0 0 о 0 0 0

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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7.7 Good Job Oil Company was preparing its sales budget for the first quarter of coming year. Forecasted sales are, in thousands: anu P180,000 210,000 270,000 den) an Sales are 20% cash and 80% on credit. Fifty percent (50%) of the credit accounts collected in the month of sales, 40% in the month following the sale, and 10% in the followi month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of i coming year are P96 million (10% x November credit sales of P200 million and 50% of Decemie January February March lo tinom plse HA credit sales of P152 million). 0 Instructions:l ierOS nnieud noit o anibliud sdoni al lanoitsmsini adale Prepare a schedule showing sales and cash collections for January, February, and Ma of the coming year.o gniwollo bieq na bing ge
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10 Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) 100,000 105,000 103,000 107,000 September October November December The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: $520,000 $535,000 $522,000 $516,500
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QUESTION 9 Garfield Corp. expects to sell 1040 units of its pet beds in March and 1960 units in April. Each unit sells for $78. Garfield's ending inventory policy is 20 percent of the following month's sales. Garfield pays its supplier $22 per unit. What is Garfield's budgeted purchases for March? AZ
2 Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 84,000 90,000 124,000 97,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 20% of the following month's unit sales. The inventory at the end of March was 16,800 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter