Schrank Company is trying to decide how many units of merchandise to order eoch month. Compony policy is to have20%of the next month's sales in inventory ot the end of each manth. Projected soles for August, September, and October are 47,000 units. 32000 units, and 57,000 units, respoctively. How many units must be purchased in September?
Q: Shadee Corporation expects to sell 550 sun shades In May and 380 In June. Each shades sells for $17.…
A: Total cash receipts in a budget refer to the sum of all the cash inflows or revenues that an…
Q: A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year. Each…
A: Economic order quantity is the optimal quantity to be ordered to minimize the total cost.
Q: Lee Retailing Company prices its products by adding 30% to its cost. Lee anticipates sales of…
A: The purchase budget is prepared to estimate the cost of purchases during the period. The cost of…
Q: 6. Karmee’s cost of goods sold averages 40 percent of the sales value. Karmee’s objective is to…
A: Beginning inventory of February = February sales x cost of goods sold x % inventory =…
Q: Colorado Nursery plans to sell 380 plants during April and 240 units in May. Coronado keeps 25% of…
A: Budgeting is a process of estimation of future income and expenditure for a particular period of…
Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…
A: Solution: Number of units that Tiny must produce in June and July are present in the following…
Q: Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for…
A: Introduction: Ending inventory is the cost of goods on hand just at end of a reporting period. A…
Q: Rocker Company expects to sell 8,500 units for $170 each for a total of $1,445,000 in January and…
A: Answer) Calculation of Budgeted Purchases for January and February January February…
Q: Shadee Corporation expects to sell 600 sun shades in May and 450 in June. Each shades sells for $11.…
A: The budget is prepared to estimate the requirements for the future period. The cash collection…
Q: Shadee Corporation expects to sell 590 sun shades in May and 330 in June. Each shades sells for $13.…
A: The budget is prepared to estimate the requirements for the period. The cash receipts schedule is…
Q: Maelstrom limited sells only on credit. They started business in June 2021. The sales are collected…
A: A financial plan that managers use to estimate revenues and expenses for a particular period of time…
Q: Bruno Industries expects credit sales for January, February, and March to be $200,000, $260,000, and…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Abc retailing company prices it's products by adding 30% to its cost.abc anticipates sales of $…
A: Cost of the inventory:- It includes the purchase of inventory less discount received which also…
Q: Sheridan Company plans to sell 12000 lawn chairs during May, 9700 in June, and 6000 during July. The…
A: Units produced means the goods that are produced by the entity during a period. It is number of…
Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…
A: Income statement means a statement which shows the expenses and revenue of the organisation during a…
Q: Graham Potato Company has projected sales of $10,200 in September, $13,500 in October, $20.200 in…
A: Cash budget is used to estimate cash inflows (cash receipts) and cash outflows (cash payments) of a…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: The number of units of product that must be manufactured is defined by the production budget, which…
Q: The home buyer is planning their basic towel assortment for the fall season. The sales plan is…
A: The Basic Stock approach of inventory planning establishes a consistent baseline level of inventory…
Q: Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is…
A: Raw material purchase budget is prepared with a view to estimate the cost of total material required…
Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…
A: Answer - The Cash Receipts Schedule - A cash receipts schedule/ budget shows the pattern and…
Q: Shadee Corporation expects to sell 580 sun shades in May and 410 in June. Each shades sells for $15.…
A: In accounting, budgeting refers to the process of creating a financial plan for a specific period,…
Q: Bookworm Corporation maintains ending inventory for each month at 5% of the following month's sales.…
A: Units produced in March = Units sold in March + Desired Ending inventory - Beginning inventory…
Q: Shadee Corporation expects to sell 500 sun shades in May and 440 in June. Each shades sells for $19.…
A: CASH BUDGET A cash budget is an estimation of the cash flows of a business over a specific period of…
Q: OfficeMart Inc. has “cash and carry” customers and credit customers. OfficeMart estimates that 30%…
A: A cash collection schedule means showing a pattern in which a business expects to collect cash from…
Q: Samuelson has a beginning inventory balance on January 1 of 12,000 units and desires an ending…
A: Given information: Beginning inventory on January 1 is 12,000 units, End balancing of 20% of the…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: Working:
Q: CO, SRL anticipates the following sales in the given months: March 42,000 units April 59,000 units…
A: The manufacturing companies have to plan the required production levels for future so as to meet the…
Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…
A: Cash budgets are prepared the management to estimate the total amount of receipts and collections…
Q: Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of…
A: The purchases are calculated as: Cost of goods sold + ending inventory - Beginning inventory
Q: Good Morning Sunshine is a wholesaler of coffee makers. In the current year, actual March sales…
A: In this question, we will calculate company's expected cash disbursements in May to its supplier.…
Q: Muscat Manufacturing plans to sell 6,000 chairs during May, 5,700 in June, and 6,000 during July.…
A: Units to be produced in particular period means how many units needed to coverup sales demand and…
Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…
A: Budgeted cost of goods sold in March = 4,300 * $260 * 60%= $670,800
Q: In 2021, Chatsworth Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in…
A: July sales = $40,000 July Cash sales = 40% July Credit sales = 60% Uncollectble amount = 5% of…
Q: College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Forrest Company manufactures phone chargers and has a JIT policy that ending inventory should equal…
A: Production budget: It reflects the number of units of the goods that should be manufactured by the…
Q: Shadee Corp. expects to sell 600 sun visors in May and 440 in June Each visor sells for $14Shadee's…
A: The budget process involves an estimation of expected expenses or revenues relating to a particular…
Q: he warehouse has projected sales for June through September of 56,700, 68,900, 70,200, and 54,300.…
A: 46% are collected in month of sales51% are collected in next month2% are collected in second…
Q: Sales of Suzhu Corp are expected to be 6,000 units for the month. The company woud like to maintain…
A: A production plan is the schedule of production which includes the bifurcation of units to be…
Q: Millen’s managers have made the following additional assumptions and estimates Estimated sales for…
A: ACCOUNT RECEIVABLE; An account receivable is defined as it is money that has not been paid by…
Q: Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000…
A: Information given in the above question is as follows: Sale forecast for the next quarter are given…
Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units…
A: Budgeted production = Budgeted sales + Desired ending inventories - Beginning inventory
Q: eat Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are…
A: The budget is prepared to estimate the requirements for the period. The cost of goods sold records…
Q: Osage Incorporated has actual sales for May and June and forecast sales for July, August, September,…
A: Material purchase budget :— This budget is prepared to estimate the number of units and cost of…
Q: The Lumber Yard has projected the sales below for the next four months. The company collects 37…
A: The credit sales are said to be the major component of cells for the entity because it help the…
Q: Shadee Corporation expects to sell 630 sun shades in May and 420 in June. Each shades sells for $18.…
A: Cash Collection Budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Kahlon Company likes to maintain its inventory quantity at the end of each month equal to one fourth…
A: The objective of the question is to calculate the number of units that Kahlon Company needs to…
Q: Nyanza, Incorporated anticipates sales of 55,000 units, 53,000 units, and 56,000 units in July,…
A: Units to be produced in July54,400Explanation:Step 1:Calculation of the numbers of units plan to…
Q: Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March…
A: The production budget is referred as a detailed plan that outlines number of units the company needs…
Q: New Energy Incorporated has a beginning inventory balance on January 1 of 25,000 units and desires…
A: Given information: Beginning inventory on January 1 is 25,000 units,Ending balance = 20% of the next…
Q: (Production schedule) The projected sales, in units,for Einstein Inc. By month for the first four…
A: Ending inventory = 1/2 of next month estimated sales January = 12,000*1/2 = 6,000 units February =…
Accounting
Schrank Company is trying to decide how many units of merchandise to order eoch month. Compony policy is to have20%of the next month's sales in inventory ot the end of each manth. Projected soles for August, September, and October are 47,000 units. 32000 units, and 57,000 units, respoctively. How many units must be purchased in September?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Select one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choiceAll sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…The Boswell Corporation forecasts its sales in units for the next four months as follows: March 11,000 April 13,000 May 10,500 June 9,000 Boswell maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month. Dividends of $20,500 are to be paid in May.
- Graham Potato Company has projected sales of $11,400 in September, $14,500 in October, $21,400 in November, and $17,400 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham’s cash payments for November and December are $18,000 and $10,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. b. Prepare a cash budget with borrowing needed or repayments for November and December. (Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0.)The beginning inventory is expected to be 3,100 cases. Expected sales are 13,300 cases, and the company wishes to begin the next period with an inventory of 2,100 cases. The number of cases the company must purchase during the month isStar Company was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on credit, 30% are expected to be collected in the month of the sale and the remainder in the following month. What is Star Company expected cash collection for September?
- Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22,000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Graham Potato Company Cash Receipts Schedule Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts September October November DecemberShadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shades sells for $15. Shadee's beginning and ending finished goods inventories for May are 80 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. It expects the following unit sales for the third quarter. July August September 545 450 430 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale. 40 percent is collected during the following month, and 8 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August SeptemberShadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shades sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 45 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: July August September 545 500 470 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. August September Total Cash Receipts
- A June sales forecast projects that 8,000 units are going to be sold at a price of $11.00 per unit. The desired ending inventory of units is 12% higher than the beginning inventory of 900 units. Merchandise purchases for June are projected to include how many units? O 8,000 units O 8,108 units O 7,892 units O 9,008 units O 8,450 unitsTrailers Company expects to sell 6,500 units for $155 each for a total of $1,007,500 in January and 2,300 units for $200 each for a total of $460,000 in February. The company expécts cost of goods sold to average 50% of sales revenue, and the company expects to sell 5,000 units in March for $200 each. Trailers' target ending inventory is $20,000 plus 50% of the next month's cost of goods sold. Prepare Trailers' inventory, purchases, and cost of goods sold budget for January and February. Trailers Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases 503750 135000 638750 February 230000 520000 750000Millen’s managers have made the following additional assumptions and estimates: Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. The company does not plan to buy or sell any plant and equipment…