VVV Company manufactures a single product. It keeps its inventory of finished goods at twice the coming month's budgeted sales and inventory of raw materials at 150% of the coming month's budgeted production. Each unit of product requires five pounds of materials, which cost $3 per pound. The sales budget is, in units: May 10,000 June 12,400 July 12,600 August 13,200
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1. Compute budgeted material purchases for June in dollars.
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- Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 230 250 220 170 230 Each candle costs $12. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $3,150. a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. Budgeted unit sales) Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Cost of merchandise (per unit) Total cost of merchandise purchases Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May b. Prepare a cash payments budget for the quarter ending June 30. June Total1. How does budgeting provide important information to managers and operating personnel? 2. Explain at least three times of budgets. 3. Explain how a flexible budget is used?Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year: Month May June July August Sales $ 99,000 118,000 135,000 132,000 Purchases $ 63,000 89,000 115,000 72,000 Required 1 Required 2 The majority of Martin's sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 35 percent are collected in the month of sale and 65 percent are collected in the following month. All of Martin's purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August. Cash Expenses Paid $ 22,000 Complete this question by entering your…
- Preparing a financial budget—budgeted balance sheet Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018. June 30, Merchandise Inventory balance, $17,770 July purchase of Merchandise Inventory, $4,400, paid in cash July payments of Accounts Payable, $8,400 June 30 Accounts Payable balance, $10,700 June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880 June 30 total stockholders’ equity balance, $28,020 July Depreciation Expense, $500 Cost of Goods Sold, 60% of Saks Other July expenses including income tax $2,000, paid in cash June 30 Cash balance, $11,600 July budgeted Sales, all on account, $12,690 June 30 Accounts Receivable balance, $5,130 July cash receipts from collections on account, $14,700 (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.)Ramos Co. provides the following sales forecast and production budget for the next four months. July 660 600 Sales (units) Budgeted production (units) April 560 500 The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Required 1 Required 2 May 640 630 Complete this question by entering your answers in the tabs below. RAMOS CO. June 590 600 Prepare a…hello, help please
- A manufacturing company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. While doing so, the Cash balance can be taken from the OA budgeted income statement OB operational budget OC. sales budget OD. cash budget4. Prepare a direct labor cost budget for August. Newport Inc. Direct Labor Cost Budget For the First Quarter Ending August 31 June July August First Quarter hr. hr. hr. hr. hrs. hrs. hrs. hrs. X$ X$ X$ 5. Prepare a factory overhead cost budget for August. Newport Inc. Factory Overhead Cost Budget For the First Quarter Ending August 31 June July August First Quarter Variable factory overhead: hrs. hrs. hrs. hrs. X$ X$ X$ X$ Fixed factory overhead: Total factory overhead costCarmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
- Which of the following statements are true? Statement I. In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period. Statement II. In the merchandise purchases budget, the required purchases (in units) for a period can be determined by subtracting the beginning merchandise inventory (in units) from the budgeted sales (in units) and desired ending merchandise inventory (in units). Statement III. When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased. Only Statement I is true. O Only Statement II is true. Statements I and II are true. Statements II and III are true. O None of the…1. Question : (TCO 7) The culmination of preparing operating budgets is the: pro forma balance sheet. production budget. cash budget. pro forma income statement. Points Received: 4 of 4Comments: 2. Question : (TCO 7) The starting point in preparing a master budget is the preparation of the: production budget. sales budget. purchasing budget. personnel budget. Points Received: 4 of 4Comments: 3. Question : (TCO 7) The production budget shows planned sales of 32,000. Beginning inventory is 5,600. Units to be produced are 33,600. What is the desired ending inventory? 4,000 5,600 6,400 7,200 Points Received: 4 of 4Comments: 4. Question : (TCO 7) If there were 20,000 pounds of raw materials on hand on January 1, 45,000 pounds are desired for inventory at January 31, and 295,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? 295,000 pounds 315,000 pounds 320,000 pounds 360,000 pounds Points Received: 4 of 4Comments: 5. Question :…The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef. 310 units at $700 per unit 150 units at $1,200 per unit Master Chef. Vermont: Backyard Chef. 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef. Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Finished products: Grates.. 290 units Backyard Chef 30 units Stainless steel. 1,500 Ibs. Master Chef. 32 units Burner subassemblies 170 units Shelves.. 340 units c. Desired inventories at July 31: Direct materials: Finished products: Backyard Chef Master Chef.. Grates. 340 units 40 units Stainless steel. 1,800 lbs. 22 units Burner subassemblies 155 units Shelves..…
