So es AZ Products The marketing department of AZ Products has submitted the following sales forecast for the upcoming fiscal year: 1st Quarter Budgeted sales (units) 10,000 2nd Quarter 3rd Quarter 4th Quarter 9,000 6,000 8,000 The company is set to start the first quarter with an inventory of 3,200 units of finished goods. The goal is to maintain an ending inventory of finished goods each quarter that equals 20% of the next quarter's projected sales, with a target of 3,400 units for the end of the fourth quarter. The initial raw materials inventory for the first quarter is projected at 6,240 kilograms, and the starting accounts payable is estimated at $29,640. Each unit produced requires two kilograms of raw material, priced at $8 per kilogram. The company's objective is to conclude each quarter with raw material inventory that is 10% of the next quarter's production requirements, aiming for 6,280 kilograms by the end of the fourth quarter. Furthermore, the company intends to pay 75% of the raw material purchases in the quarter of acquisition and the remaining 25% in the subsequent quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. ( 2. Prepare a schedule of expected cash disbursements for materials for the upcoming fiscal year.
So es AZ Products The marketing department of AZ Products has submitted the following sales forecast for the upcoming fiscal year: 1st Quarter Budgeted sales (units) 10,000 2nd Quarter 3rd Quarter 4th Quarter 9,000 6,000 8,000 The company is set to start the first quarter with an inventory of 3,200 units of finished goods. The goal is to maintain an ending inventory of finished goods each quarter that equals 20% of the next quarter's projected sales, with a target of 3,400 units for the end of the fourth quarter. The initial raw materials inventory for the first quarter is projected at 6,240 kilograms, and the starting accounts payable is estimated at $29,640. Each unit produced requires two kilograms of raw material, priced at $8 per kilogram. The company's objective is to conclude each quarter with raw material inventory that is 10% of the next quarter's production requirements, aiming for 6,280 kilograms by the end of the fourth quarter. Furthermore, the company intends to pay 75% of the raw material purchases in the quarter of acquisition and the remaining 25% in the subsequent quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. ( 2. Prepare a schedule of expected cash disbursements for materials for the upcoming fiscal year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:So
es
AZ Products
The marketing department of AZ Products has submitted the following sales forecast for the upcoming fiscal year:
1st Quarter
Budgeted sales (units)
10,000
2nd Quarter
3rd Quarter
4th Quarter
9,000
6,000
8,000
The company is set to start the first quarter with an inventory of 3,200 units of finished goods. The goal is to maintain an ending inventory of
finished goods each quarter that equals 20% of the next quarter's projected sales, with a target of 3,400 units for the end of the fourth
quarter.
The initial raw materials inventory for the first quarter is projected at 6,240 kilograms, and the starting accounts payable is estimated at
$29,640.
Each unit produced requires two kilograms of raw material, priced at $8 per kilogram. The company's objective is to conclude each quarter
with raw material inventory that is 10% of the next quarter's production requirements, aiming for 6,280 kilograms by the end of the fourth
quarter. Furthermore, the company intends to pay 75% of the raw material purchases in the quarter of acquisition and the remaining 25% in
the subsequent quarter.
Required:
1. Prepare the company's production budget for the upcoming fiscal year. (
2. Prepare a schedule of expected cash disbursements for materials for the upcoming fiscal year.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education