hello, help please Freese Inc. is in the process of preparing the fourth quarter budget for 2019, and the following data have been assembled:• The company sells a single product at a price of $59 per unit. The estimated sales volume for the next six months is as follows:September 16,900 units15,600 units18,200 units26,000 units11,700 units13,000 unitsOctoberNovemberDecemberJanuaryFebruary• All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month ofsale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value ofaccounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $678,028 on September 30, 2019.Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month'sbudgeted sales. The finished goods inventory on September 30, 2019, is expected to be 4,680 units.• To make one unit of finished product, 5 pounds of materials are required. Management's policy is to havë enough materials on handat the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 32,760pounds on September 30, 20019.• The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid inthe following month. The accounts payable for raw material purchases is expected to be $148,122 on September 30, 2019.Required:a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of2019.OctoberNovemberDecemberTotalExpected sales in units nment iBeginning inventory of raw materialsPurchases of raw materialsRaw materials available for useDesired ending inventory of raw materialsQuantity of raw materials to be used in productioncese. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2019. (Do not round intermediatecalculations.)Cash payments for:OctoberNovemberDecemberTotalSeptember purchasesOctober purchasesNovember purchasesDecember purchasesTotal cash payments

Budgeting is a process of creating a financial plan for a coming year.

Freese Inc. is in the process of preparing the fourth quarter budget for 2019, and the following data have been assembled: • The company sells a single product at a price of $59 per unit. The estimated sales volume for the next six months is as follows: September October November December January February 16,900 units 15,600 units 18,200 units 26,000 units 11,700 units 13,000 units • All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $678,028 on September 30, 2019. • Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's budgeted sales. The finished goods inventory on September 30, 2019, is expected to be 4,680 units. • To make one unit of finished product, 5 pounds of materials are required. Management's policy is to havé enough materials on hand at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 32,760 pounds on September 30, 2019. • The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month.of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $148,122 on September 30, 2019. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2019.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q