Explain why budgeting is important?You have been asked to prepare sales budgetand production budget for 2023. The followinginformation is available from the records:Quarter 1Quarter 2Quarter 3.Quarter 4.TotalThis Year 20222,0002,5003,0003,50011,000Next year 2023-4,0005,0006,0007,00022,000The selling price in 2022 was 90 and it will be100 RM in 2023. The production manager alsoplans that there will be no ending inventory at theend of any quarter.

Budgeting refers to the procedure of determining how much amount of money the company or person need…

Answered: Explain why budgeting is important?

Business

Accounting

Explain why budgeting is important?

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 2.4C

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The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $550,000 Sales 567,933 Purchases 294,814 Ending Inventory* 10% Administrative Salaries 50,340 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,400 Depreciation Expense 1,100 Utilities 2,600 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%.
PT Classic Kingdom is in the process of making the production budget for 2021. The production department supplies the following information to help making the production budget of 2021: Sales budget Unit Quarter I Quarter II Quarter III Quarter IV Opening stock Closing stock 29000 41000 51000 39000 5000 2000 Based on the above information, you have to make the production budget of 2021 using: a. Constant method b. Fluctuated method Moderate method with additional information that the units produced of each quarter I and III is 20 percent C. higher than the average production and the units produced of each quarter II and IV is 20 percent less than the average production.
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Please draft a budgeted receipt schedule from debtors for the period of 1 January 2023 to 30 June 2023. Month of 2023 Budgeted total sales: 1. January 140 000 2. February 132 000 3. March 128 000 4. April 115 000 5. May 120 000 6. June 150 000 Additional information: Total sales for September 2022, October 2022, November 2022 and December 2022 were R 120 000, R128 000 and R134 000 and R140 000 respectively. The goods sold on credit were 60% of actual sales. Customers will pay their debt as follows: . ⚫ 0% in the first month after the month of sale • 60% in the second month after the month of sale • 30% in the third month after the month of sale 10% in the fourth month after the month of sale
Crane Company has accumulated the following budget data for the year 2022. 1. Sales: 31,100 units, unit selling price $85. 2. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,100 pounds; ending, 15,100 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 20% of income before income taxes.
The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were preseted below: Finished Product Model B 8,000 P 140 Model M 5,000 P 170 Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 850 600 700 500 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 5,500 Material M2 4,000 5,000 Material M3 3,000 3,600 Model B Model M 4 units 3 units 3 units 15 hours Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: Material M1 Material M2 per unit Material M3 2.50 per unit Direct labor P2.00 Р.00 per uniti 3.00 per hour Other budgeted data based on production are shown below: Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other…
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Splish Company has accumulated the following budget data for the year 2022: 1. 2. 3. 4. 5. 6. 19 Sales: 27,900 units; unit selling price $82 Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, 3 hours at $13 per hour; and manufacturing overhead, $6 per direct labour hour Inventories (raw materials only): beginning, 9,900 kg; ending, 14,100 kg Raw materials cost: $5 per kilogram Selling and administrative expenses: $201,000 Income taxes: 30% of income before income taxes
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Prepare a sales budget including a column for each year in and a column for the total. The budgets should also include a schedule of expected cash collection, by year and in total.Make your assumptions about the type of sales (cash versus credit) and your credit terms clear.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 2018, is prepared by the Accounting Department of Regina Soap Co.: Cash Accounts Receivable Finished Goods Work in Process Materials $100,200 190,400 40,000 26,700 43,800 Prepaid Expenses 3,200 Plant and Equipment 518,000 Accumulated Depreciation-Plant and Equipment $222,700 Accounts Payable 136,300 Common Stock, $10 par Retained Earnings 350,000 $922,300 213,300 $922,300 Factory output and sales for 20Y9 are expected to total 25,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses…