The H&BClothing Company manufactures luxury brand silk jackets. Currently the company makes classic style jackets in a single size. The production process involves drawing, cutting, and assembling the pattern pieces. Direct materials include two types of fabric – silk, and viscose for lining. Other materials, such as shoulder pads, stitching threads, buttons, labels, and packaging, are treated as indirect materials. H&BClothing is preparing budgets for the third quarter ending September 30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July, August, and September, along with a total budget for the quarter. 1. The previous year’s sales (2022) for the corresponding period were: July 580 jackets August 600 jackets September 650 jackets October 850 jackets November 1,000 jackets The company expects the above volume of jacket sales to increase by 15% for the period July 2023 – November 2023. The budgeted selling price for 2023 is $735.00 per jacket. The company expects 10% of its sales to be cash (COD) sales. The remaining 90% of sales will be made on credit. Prepare a Sales Budget for H&BClothing. 2. The company desires to have finished goods inventory on hand at the end of each month equal to 12 percent of the following month's budgeted unit sales. Use the @ROUND function to round to the nearest whole number the number of jackets desired in ending inventory. On June 30, 2023, the company expects to have 55 jackets on hand. Use the @ROUND function to round to the nearest whole number the number of jacket units to produce. Prepare a Production budget. (NOTE: an estimate of sales in October is required in order to complete the production budget for September). prepare the budgets on an excel sheet thanks for the help
The H&BClothing Company manufactures luxury brand silk
jackets. Currently the company makes classic style jackets in
a single size. The production process involves drawing,
cutting, and assembling the pattern pieces. Direct materials
include two types of fabric – silk, and viscose for lining.
Other materials, such as shoulder pads, stitching threads,
buttons, labels, and packaging, are treated as indirect
materials. H&BClothing is preparing budgets for the third quarter ending September
30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July,
August, and September, along with a total budget for the quarter.
1. The previous year’s sales (2022) for the corresponding period were:
July 580 jackets
August 600 jackets
September 650 jackets
October 850 jackets
November 1,000 jackets
The company expects the above volume of jacket sales to increase by 15% for the
period July 2023 – November 2023. The budgeted selling price for 2023 is $735.00
per jacket. The company expects 10% of its sales to be cash (COD) sales. The
remaining 90% of sales will be made on credit. Prepare a Sales Budget for
H&BClothing.
2. The company desires to have finished goods inventory on hand at the end of each
month equal to 12 percent of the following month's budgeted unit sales. Use the
@ROUND function to round to the nearest whole number the number of jackets
desired in ending inventory. On June 30, 2023, the company expects to have 55
jackets on hand. Use the @ROUND function to round to the nearest whole
number the number of jacket units to produce. Prepare a Production budget.
(NOTE: an estimate of sales in October is required in order to complete the
production budget for September).
prepare the budgets on an excel sheet thanks for the help
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