Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cost Cases 300 $12,000,00 175 $ 7,000.00 Materiale Inventory
Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cost Cases 300 $12,000,00 175 $ 7,000.00 Materiale Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Part B. Budgets
During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August
manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for
August. Inventory planning information is provided as follows:
Finished Goods Inventory
Estimated finished goods inventory, August 1
Desired finished goods inventory, August 31
Cases
300
Cost
$12,000.00
175
$ 7,000.00
Materials Inventory
Estimated materials inventory, August 1
Cream Base (oz.)
250
Oils (oz.)
290
Bottels (oz.)
600
Desired materials inventory, August 31
1,000
360
240
There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was
assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.
Instructions
Prepare the August production budget.
Prepare the August direct materials purchases budget.
Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour.
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