Required: Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Prepare a production budget for each of the months July–October. Question no 2Konka Company manufactures beach umbrellas. The company is preparing detailed budgets for thethird quarter and has assembled the following information to assist in the budget preparation:a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):July. 35,000 October..20,000August .... 70,000 November. 15,000September........... 50,000 December.... 10,000The selling price of the beach umbrellas is $13 per unit.b. All sales are on account. Based on past experience, sales are collected in the following pattern:30% in the month of sale65% in the month following saleSales for June totaled $300,000.c. The company maintains finished goods inventories equal to 15% of the following month's sales. Thisrequirement will be met at the end of June.d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire.Therefore, the company requires that the ending inventory of Gilden be equal to 45% of the followingmonth's production needs. The inventory of Gilden on hand at the beginning and end of the quarter willbe:June 3072,000 feetSeptember 30 ......... ? feete. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month ofpurchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchasesof Gilden during June will be $76,000.

Sales Budget The preparation of sales budget which given the details of estimates sales for the…

Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Prepare a production budget for each of the months July–October.

Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Prepare a production budget for each of the months July–October.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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