Question

The PR Products Corp. company estimates that its quarterly sales for next year are as follows: (units) the Price per unit is $ 70
1. 1 Quarter 30,000 units
2. 2 Quarter 50,000
3. 3 Quarter 60,000
4. 4 Quarter 40,000
Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter that are made and 40% in the next quarter.
The desired final inventory of finished goods represents 20% of sales per unit for the next or next quarter. The initial inventory of finished products is 6,000 units.

It takes 3 pounds of raw material per unit for the necessary production. The desired raw material inventory is 10% of the necessary production for the next quarter. The initial raw material inventory is 12,000 units. The cost of raw material is $ 1.00 per pound.

Accounts payable as of 12/31 / X0 total $ 60,000. Payments for purchases of raw materials are made at a rate of 70% in the purchase quarter and the other 30% in the following quarter.
The time spent working directly per unit is 1.5 hours. The cost of direct work per hour is $ 20.00.
Requirements:
5. Prepare budgets for Sales, Collections, Production, Raw Material, Disbursements, and Direct Labor. Use the formats provided below. 

1. Sales Budget

2. Expected Cash Collections

3. Production Budget

4. Direct Material Budget

5. Expected Cash Disbursements ( Pagos)

6. Direct Labor Budget

Buscar Total Cash Collections 8. Production Budget T2 T4 Year 8,500 Expected sales Desired ending inventory Total needs Beginning inventory Units to be produced 9. Direct Material Budget ear

Answer 1

Answer with working is given below

Sales Budget Sales units Selling price Sales value T1 T 30,000 $70.00 $2,100,000 12 1 50,000 $70.00 $3,500,000 13 1 14 1 Year 60,000 40,000 180,000 $70.00 $70.00 $70.00 $4,200,000 $2,800,000 $12,600,000 b. Schedule of Cash collected from Customers 11 12 13 14 Year 90,000 1,260,000 Collection from Customers Opening Accounts Receivable Quarter Quarter II Quarter III Quarter IV Total Cash Collections 840,000 2,100,000 1,400,000 2,520,000 1,680,000 | 1,680,000 3,920,000 3,360,000 90,000 2,100,000 3,500,000 4,200,000 1,680,000 11,570,000 1,350,000 2,940,000 d. Production Budget - Units T1 T3 T4 Year Expected Sales Add: Desired Closing inventory Total Needs Less: Beginning Inventory Units to be produced 30,000 10,000 40,000 6,000 34,000 T2 50,000 12,000 62,000 10,000 52,000 60,000 8,0001 68,000 12,000 56,000 40,000 8,500 48,500 8,000 40,500 180,000 8,500 188,500 6,000 182,500 d. Direct Material Purchase Budget T1 34,000 12 52,000 13 56,000 14 40,500 Year 182,500 Units to be produced RM needed per unit (Libras) Production needs Add: Desired Closing inventory Total Needs Less Opening Stock RM to be purchased Cost of RM per pound Cost of RM to be purchased 102,000 15,600 117,600 12,000 105,600 $11 $105,600 156,000 16,800 172,800 15,600 157,200 $11 $157,200 168,000 12,150| 180,150 16,800 163,350 $1] $163,350 121,500 4,500 126,000 12,150 113,8501 547,500 4,500 552,000 12,000 540,000 $20 $113,850 $540,000 Schedule of Cash payment for purchases T1 $ 105,600 T2 $157,200 T3 $ 163,350 T4 $113,850 Year $540,000 Purchases Payment Opening Accounts Payable balance Quarter I purchase Quarter Il purchase Quarter III purchase Quarter IV purchase Total Cash Disbursements $60,000 $73,920 $31,680 $110,040 $47,160 $114,345 $60,000 $105,600 $157,200 $ 163,350 $79,695 $565,845 $49,005 $79,695 $128,7001 $133,920 $141,720 $161,505 f. Direct Labour Budget Year 182,500 Units to be produced Direct labour hour per unit Total Direct labour hours needed DL rate per hour Total Direct Labour cost Budget T1 34,000 1.50 51,000 $20 $1,020,000 T2 52,000 1.50 78,000 $20 $1,560,000 T3 T4 56,000 40,500 1.50 1.50 84,000 60,750 $20 $20 $1,680,000 $1,215,000 273,750 $5,475,000