ROBLEM lling in for his supervisor, who suddenly left the company, Harvey quickly valuated the situation to wrap up his department's production budget. The epartment currently holds enough inventory to be in compliance with its andard which is based on the following month's budgeted sales. From the les and previous budgets, he learned the budgeted unit sales for the next 4 onths and the standard for holding inventory at month end which are both resented here. Unit sales per month Month 1 Month 2 Month 3 Month 4 Ending inventory standard Materials held at month end 5,000 4,500 6,000 6,500 10% Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Show the production budget that Harvey would assemble for the next quarter. Budgeted sales volume Target ending FG Inventory Total units needed Beginning FG Inventory Budgeted units to be produced. Month 1 ▼ ▼ Month 2 ▼ Month 3 ▼ ▼ Quarter ▼ ▼

ROBLEM lling in for his supervisor, who suddenly left the company, Harvey quickly valuated the situation to wrap up his department's production budget. The epartment currently holds enough inventory to be in compliance with its andard which is based on the following month's budgeted sales. From the les and previous budgets, he learned the budgeted unit sales for the next 4 onths and the standard for holding inventory at month end which are both resented here. Unit sales per month Month 1 Month 2 Month 3 Month 4 Ending inventory standard Materials held at month end 5,000 4,500 6,000 6,500 10% Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Show the production budget that Harvey would assemble for the next quarter. Budgeted sales volume Target ending FG Inventory Total units needed Beginning FG Inventory Budgeted units to be produced. Month 1 ▼ ▼ Month 2 ▼ Month 3 ▼ ▼ Quarter ▼ ▼

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please don't give image based answer
Executive officers of Fanning Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Source of Estimate Sales manager Marketing consultant Fanning's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 20 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $25,000. Next year's ending inventory is budgeted to be $26,000. Required a. Prepare an inventory purchases budget using the sales manager's estimate. b. Prepare an inventory purchases budget using the marketing consultant's estimate. Complete this question by entering y Assessment Tool iFrame tabs below. Show Transcribed Text First Quarter Second Quarter $ 383,000 $ 304,000 527,000 470,000 Sales Required A Required B Required A Prepare y purchases budget using the sales manager's estimate. Note: Round…
Show the solution in good accounting form
i need the answer quickly
James noticed that the sales budget for June indicated sales of $1,000,000, however, the cash budget for June indicated collections from customers totaled $890,000, James was concerned about this difference and brought it to the attention of the CFO. The CFO's likely response was Multiple Choice This is an indication that there may be fraudulent activity, with sales being understated on the budget One of the departments revised their budget for cash received by $110 000 because they expected sales to be down for the month Cash collected would be less than sales because the company has estimated that a percentage of the sales recorded were on credit This is an error by the budget manager and the CFO will have it corrected
Executive officers of Adams Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources. Source of Estimate First Quarter Second Quarter Third Quarter Fourth Quarter Sales manager $ 378,000 $ 316,000 $ 271,000 $ 480,000 Marketing consultant 512,000 469,000 403,000 648,000 Adams’s past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 15 percent of the next quarter’s expected cost of goods sold as the current quarter’s ending inventory. This year’s ending inventory is $30,000. Next year’s ending inventory is budgeted to be $31,000. Required Prepare an inventory purchases budget using the sales manager’s estimate. Prepare an inventory purchases budget using the marketing consultant’s estimate.
Jaydip
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.05 Shipping $ 1.55 Advertising $ 51,500 $ 0.35 Executive salaries $ 61,500 Depreciation on office equipment $ 21,500 Other $ 41,500 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,500 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:
Example 1: Purchases Budget Problem for Retailing Concern. Note that the format shown here is the same as would be used for the production and materials purchases budgets for a manufacturing concern. Lair Company is a retailer of leather handbags. The handbags are imported and are sometimes difficult to obtain on short notice. Therefore, the managers want to have 40% of the next month's estimated sales on hand at the end of the month. The Company's sales budget for the first quarter follows: Dollars Units January $200,000 2,000 February 240,000 2,400 March 300,000 3,000 The handbags cost $80 each and sell for $100. Prepare a purchases budget for February.
Executive officers of Munoz Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Source of Estimate Sales manager Marketing consultant First Quarter $ 388,000 517,000 Complete this question by entering your answers in the tabs below. Sales Munoz's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 20 percent of the next quarter's expected cost of goods sold as the current quarter's ending Inventory. This year's ending Inventory is $35,000. Next year's ending Inventory is budgeted to be $36,000. Required a. Prepare an Inventory purchases budget using the sales manager's estimate. b. Prepare an Inventory purchases budget using the marketing consultant's estimate. Required A Required B Prepare an inventory purchases budget using the sales manager's estimate. Note: Round your final answers to nearest whole dollar amount. Total inventory…
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 21,000 units; sports gear, 81,500 units; and apparel, 49,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Footwear Sports gear Apparel FOOTWEAR Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Less: Beginning inventory units Total required units Less: Beginning inventory units Units to purchase SPORTS GEAR Total required units Budgeted Sales in Units March April May 15,000 23,500 32,000 69,500 89,000 95,500 42,000 38,000 32,000 Add: Desired ending inventory Next…
Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions [LO8-2, L08-4, LO8-8] Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income "Includes $28.000 of depreciation each month. April May June $ 600,000 $1,100,000 $ 560,000 420,000 770,000 392,000 180,000 330,000 168,000 July $ 460,000 322,000 138,000 111,000 48,000 159,000 105,000 67,000 46,000 64,800 41,600 44,000 169,800 108,600 90,000 $ 21,000 $ 160,200 $ 59,400 $ 48,000 b. Sales are…