Oak Tree Furniture Industries manufactures wooden dining chairs. The selling price of the wooden dining chairs is $15 per unit. The company is preparing detailed budgets for the third quarter (Third quarter includes July, August and September) and fourth quarter (Fourth quarter includes October, November and December) and has assembled the following information to assist in the budget preparation (see below tables). Sales for June totaled $2,000. The company's cost of direct materials to be purchased for each month and the third quarter are provided in the second table below. One-half of a month's purchases of Wood is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Wood during June will be $400. Calculate the expected cash disbursements for direct materials (Wood) purchases for the third quarter. Estimated unit sales for the next several month Month July August September October Units 100 200 300 200 200 300 November December Cost of raw materials to be purchased for each month and the third quarter are: July= August= September= Type your answer... $600 $1,000 $1,000 13
Oak Tree Furniture Industries manufactures wooden dining chairs. The selling price of the wooden dining chairs is $15 per unit. The company is preparing detailed budgets for the third quarter (Third quarter includes July, August and September) and fourth quarter (Fourth quarter includes October, November and December) and has assembled the following information to assist in the budget preparation (see below tables). Sales for June totaled $2,000. The company's cost of direct materials to be purchased for each month and the third quarter are provided in the second table below. One-half of a month's purchases of Wood is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Wood during June will be $400. Calculate the expected cash disbursements for direct materials (Wood) purchases for the third quarter. Estimated unit sales for the next several month Month July August September October Units 100 200 300 200 200 300 November December Cost of raw materials to be purchased for each month and the third quarter are: July= August= September= Type your answer... $600 $1,000 $1,000 13
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education