Homework Help is Here – Start Your Trial Now!
Business
Accounting
- Prepare a production budget October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials

- Prepare a production budget October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

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 units 15,600 units 18,200 units 26,000 units 11,700 units 13,000 units October November December January February • 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 havë 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, 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 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. October November December Total Expected sales in units
Transcribed Image Text: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 units 15,600 units 18,200 units 26,000 units 11,700 units 13,000 units October November December January February • 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 havë 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, 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 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. October November December Total Expected sales in units
c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials Raw materials available for use Desired ending inventory of raw materials Quantity of raw materials to be used in production
Transcribed Image Text:c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. October November December Total Beginning inventory of raw materials Purchases of raw materials Raw materials available for use Desired ending inventory of raw materials Quantity of raw materials to be used in production
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS