January1,800February1,650March1,600April2,1002,3502,5002,200MayJuneJulyVolt Battery always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory forDecember (January's beginning inventory) is 2,160 units, which is consistent with this policy.Materials cost $13 per unit and are paid for in the month after purchase. Labor cost is $6 per unit and is paid in the month the cost isincurred. Overhead costs are $11,000 per month. Interest of $9,000 is scheduled to be paid in March, and employee bonuses of$14,200 will be paid in June.a. Prepare a monthly production schedule for January through June.Note: Input all amounts as positive values except Beginning inventory values under Production Schedule which should beentered with a minus sign. Leave no cells blank be certain to enter 0 wherever required.Projected unit salesDesired ending inventoryTotal units requiredBeginning inventoryUnits to be producedVolt Battery CompanyProduction ScheduleJanuaryFebruaryMarchAprilMayJuneJuly

Detailed explanation: JanuaryFebruaryMarchApril MayJuneJulyProjected unit sales 1800 1650…

Answered: January 1,800 February 1,650 March…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
For the month of July, a company estimated that unit sales and required production are 26,600 units and 25,175 units, respectively. The company always maintains ending finished goods inventory equal to 25% of the next month's unit sales. What is the estimated unit sales for August? Multiple Choice 22,868 units 15,900 units 17,868 units 20,900 units MacBook Air F11 F12 F9 F10 F7 F8 身
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: ces March April May June 12,000 14,000 11,500 10,000 Wright maintains an ending inventory for each month in the amount of one times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in the month incurred. Fixed overhead is $15,000 per month. Dividends of $20,600 are to be paid in May. The firm produced 11,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory. Note: Input all amounts as positive values except Beginning inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain…
Sales in Month Units April 3,440 May 3.885 June 4,620 4,135 3,970 July August Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $2.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,663 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
The Volt Battery Company has forecast its sales in units as follows: January February March April May June July 1,000 850 800 1,300 1,550 1,700 1,400 Volt Battery always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,200 units, which is consistent with this policy. Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost is incurred. Overhead costs are $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of $13,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Note: Input all amounts as positive values except Beginning Inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain to enter O wherever required. Projected unit sales Desired ending inventory Total units…
Month April May June July August Sales in Units 3,500 3,805 4,570 4,125 3,988 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials costs $2.60 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,653 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May Complete this question by entering your answers in the tabs below. Required 11 Required 2 Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answers to the nearest whole number.) May Budgeted Production (Units) April Requi June Required 2 >
Assume a company's estimated sales for January, February, and March are 30.000 units, 31,000 units, and 29,000 unies, respectively. The company always maintains ending finished goods inventory equal to 30% of next month's unit sales. What is the required production in units for January? Multiple Choice 30,300 units 30,700 units 29,700 units 39,300 units Prex 1 of 23 Next > MacBook Air
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March 15,000 April 17,000 May 14,500 June 13,000 Wright maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $16,500 per month. Dividends of $20,900 are to be paid in May. The firm produced 14,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory.

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