1) | Sales budget | ||||||||
july | august | sept | quarter | ||||||
Estimated sale units | 37,000 | 84,000 | 53,000 | 174,000 | |||||
Selling price per unit | 11 | 11 | 11 | 11 | |||||
total sales | 407000 | 924000 | 583000 | 1914000 | |||||
2) | Expected cash collection | ||||||||
july | august | sept | quarter | ||||||
From june sales (363,000*65%) | 235950 | 235950 | |||||||
from july sales(407000*30%;65%) | 122100 | 264550 | 386650 | ||||||
From aug sales (924,000*30%;65%) | 277200 | 600600 | 877800 | ||||||
From sept sales (583,000*30%) | 174900 | 174900 | |||||||
total cash collections | 358050 | 541750 | 775500 | 1675300 | |||||
3) | production budget | ||||||||
july | august | sept | october | ||||||
Estimated sale units | 37,000 | 84,000 | 53,000 | 27,000 | |||||
Add: Ending inventory | 12600 | 7950 | 4050 | 2025 | |||||
total needs | 49,600 | 91,950 | 57,050 | 29,025 | |||||
less :opening inventory | -5550 | -12,600 | -7,950 | -4050 | |||||
production required | 44,050 | 79,350 | 49,100 | 24,975 | |||||
4) | |||||||||
july | august | sept | Quarter | 0ct | |||||
production required | 44,050 | 79,350 | 49,100 | 172,500 | 24,975 | ||||
feet required per umbrella | 4 | 4 | 4 | 4 | 4 | ||||
production needs | 176200 | 317400 | 196400 | 690000 | 99900 | ||||
Add:Ending inventory | 158700 | 98200 | 49950 | 49,950 | |||||
total needs | 334900 | 415600 | 246350 | 739950 | |||||
less:Opening inventory | -88100 | -158,700 | -98,200 | -88,100 | |||||
total materials purchased | 246800 | 256900 | 148150 | 651850 | |||||
5) | cost of raw materials purchases | ||||||||
july | august | sept | Quarter | ||||||
total materals purchased | 246800 | 256900 | 148150 | 651850 | |||||
cost per feet | $0.80 | $0.80 | $0.80 | $0.80 | |||||
Materials cost | $197,440.00 | $205,520.00 | $118,520.00 | $521,480.00 | |||||
6) | Cash disbursement | ||||||||
july | august | sept | Quarter | ||||||
accounts payable | 62,120 | 62,120 | |||||||
From july sales | $98,720.00 | $98,720.00 | $197,440.00 | ||||||
from aug sales | $102,760.00 | $102,760.00 | 205520 | ||||||
from sept sales | $59,260.00 | 59260 | |||||||
total cash disrbursement | 160,840 | 201480 | 162020 | 524,340 | |||||
Homework Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets (LO8-2, LO8-3, L08-4) Milo...
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 36,000 October 26,000 August 82,000 November 12,500 September 51,000 December 13,000 The selling price of the beach umbrellas is $15 per unit....
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 35,000 October 25,000 August 80,000 November 11,500 September 49,000 December 12,000 The selling price of the beach umbrellas is $13 per unit....
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 35,000 October 25,000 August 80,000 November 11,500 September 49,000 December 12,000 The selling price of the beach umbrellas is $13 per unit....
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 30,000 October 20,000 August 70,000 November 10,000 September 50,000 December 10,000 The selling price of the beach umbrellas is $12 per unit....
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, L08-4) Mila company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled me following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year in units July August September 33,508 77,008 46, cee October November December 23,568 18. Dee 1,500 The selling price of the beach umbrellas is...
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] 16.7 points Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): eBook July August September 31,000 72,000 41,000 October November December 21,000 7,500 8,000 Print References The selling price of the...
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 33,500 October 23,500 August 77,000 November 10,000 September 46,000 December 10,500 The selling price of the beach umbrellas is $10 per unit. All sales are...
What is the answer to #6? Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, L08-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units July August October 31,500 93,000 November18,000 September62,000 December18,s00 41,500 E The selling price of the beach...
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 34,000 August 78,000 September 47,000 October 24,000 November 10,500 December 11,000 The selling price of the beach umbrellas is $11 per unit. b. All sales are on account. Based on past experience, sales are collected...
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 34,000 August 78,000 September 47,000 October 24,000 November 10,500 December 11,000 The selling price of the beach umbrellas is $11 per unit. b. All sales are on account. Based on past experience, sales are collected...