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: 45,000 pieces 70,000 pieces Third quarter Fourth quarter It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 nleces at the end of the fourth quarter. The Inventory at the start of the thind gNarter will consist of 8,000 stuff toys Each stuff toy is packaged in a colorful curdboard box, and contains 2 units of Material A and 5 units of Material . The inventory of materials at the beginning of the third quarter will be: Boxes 125,000 pieces 15,000 units 45,000 units Material A Material B 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 J Quarter 4 Quarter Sales budget Add: Ending inventory Total requirements Less: Beginning inventory Production budget
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: 45,000 pieces 70,000 pieces Third quarter Fourth quarter It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 nleces at the end of the fourth quarter. The Inventory at the start of the thind gNarter will consist of 8,000 stuff toys Each stuff toy is packaged in a colorful curdboard box, and contains 2 units of Material A and 5 units of Material . The inventory of materials at the beginning of the third quarter will be: Boxes 125,000 pieces 15,000 units 45,000 units Material A Material B 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 J Quarter 4 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.
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Transcribed Image Text: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:
45,000 pieces
70,000 pieces
Third quarter
Fourth quarter
It is decided that stuff toys inventories are to be 20,000 pieces at the end
of the third quarter, and 5.000 nieces at the end of the fourth quarter. The
inventory at the start of the third gaarter will consist of 8,000 stuff toys
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:
Вохes
Material A
125,000 pieces
15,000 units
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
end of the fourth quarter?
Millet Corporation
Production Budget
For the Third & Fourth Quarters of 2021
3 Quarter
4" Quarter
Sales budget
Add: Ending inventory
Total requirements
Less: Beginning inventory
Production budget
Transcribed Image Text:Millet Corporation
Purchases Budget- Material A
For the Third & Fourth Quarters of 2021
3rd Quarter
4th Quarter
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
Millet Corporation
Purchases Budget- Material B
For the Third & Fourth Quarters of 2021
3rd Quarter
4th
Quarter
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
Boxes:
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