ZuoTi.Pro
Question

MASTER BUDGET This Company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month January February March April Dollars Units 12,000 S 72,000 9,500 14,000 21,700 130,200 57,000 84,000 May June 20,000 120,000 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale. Required: (a) Compute the expected cash collections during the months of January, February, March, April, May and June. (b) The company has decided that finished goods inventory at the end of each month should ideally be equal to 70% of next months sales. What should budgeted production be for each month? (c) It takes two pounds of raw material to make one unit of finished product. The company wants to keep an ending inventory of raw material equal to 55% of next months production needs. How many pounds of raw material should be purchased in each month? (d) The raw material costs S1.75 per pound. The company pays for 85% of its purchases during the month of purchase and the remainder in the following month. How much cash will be disbursed during each month for the purchase of raw material? (e) The projected cash balance on March 1 is $19,500. What is the estimated cash balance at the end of March? (Prepare a formal cash budget for the month of March.) *All questions should be answered in EXCEL
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
particulars january february march aprail may june
Sales 72000 57000 84000 130200 120000 192600
cash collection
- 80% of the month 57600 45600 67200 104160 96000 154080
   - 20% of previous month 14400 11400 16800 26040 24000
1.   Total collection 57600 60000 78600 120960 122040 178080
production for each month
Sales 72000 57000 84000 130200 120000 192600
- inventory at end of month 39900 58800 91140 84000 134820
- inventory at beginning of the month 39900 58800 91140 84000 134820
2.   Total production 111900 75900 116340 123060 170820 57780
purchases of raw material
0 0
Add a comment
Know the answer?
Add Answer to:
MASTER BUDGET This Company started business on January 1, 2019. The company estimated that sales for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for...

    MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month Units Dollars January 12,000 $ 72,000 February 9,500 57,000 March 14,000 84,000 April 21,700 130,200 May 20,000 120,000 June 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale....

  • MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for...

    MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month Units Dollars January 12,000 $ 72,000 February 9,500 57,000 March 14,000 84,000 April 21,700 130,200 May 20,000 120,000 June 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale....

  • Soprano Co. is in the process of preparing the second quarter budget for 2016, and the...

    Soprano Co. is in the process of preparing the second quarter budget for 2016, and the following data have been assembled • The company sells a single product at a selling price of $41 per unit. The estimated sales volume for the next six months is as follows March April 6.100 units 7,100 units 10,300 units by August 8.400 units 9.100 units 6.100 units All sales are on account. The company's collection experience has been that 42% of a month's...

  • 223) Hennagir Corporation makes one product and has provided the following information to help prepare the master bu...

    223) Hennagir Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations Budgeted selling price per unit $76 Budgeted unit sales (all on credit) January 9,500 February 9.900 March 10,600 April 12,600 Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate 3 pounds $5.00 per pound 2.2 direct labor-hours $18.00 per direct labor-hour Credit sales...

  • company is preparing its budget for 2019. the company has collected the following information from the...

    company is preparing its budget for 2019. the company has collected the following information from the managers. 1. sales: sales for November 2018 112,500 units sales for the December 2018 102,100 units Expected sales for January 2019 113,000 units Expected sales for February 2019 112,500 units Expected sales for March 2019 116,000 units Expected sales for April 2019 125,000 units Expected sales for May 2019 137,500 units Selling price unit $12 The company likes to keep 15% of next months...

  • Please show full calculations for each. Thanks! 1) ABC Company's budgeted sales are as follows: July...

    Please show full calculations for each. Thanks! 1) ABC Company's budgeted sales are as follows: July = 3,000 units;                August = 2,500 units. June ending inventory = 1,200 units. Budgeted ending inventory must equal 40% of next month's budgeted sales. Production budgeted for July would equal units = ? units ------ 2) ABC Company's budgeted production is as follows: January = 5,000 units; February = 8,000 units. Each unit produced requires 3 pounds of raw material. January beginning inventory...

  • Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue...

    Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month Sales Revenue Month Sales Revenue January $300,000 March $200,000 February 205,000 April 190,000 All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating...

  • Purchases Budget in Units and Dollars Budgeted sales of Wirtz Music Shop for the first six...

    Purchases Budget in Units and Dollars Budgeted sales of Wirtz Music Shop for the first six months of 2017 are as follows: Month Unit Sales Month Unit Sales January 155,000 April 240,000 February 185,000 May 205,000 March 225,000 June 265,000 Beginning inventory for 2017 is 35,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $5. Prepare a purchases budget in units and...

  • Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...

    Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total...

  • The Bear Corporation will begin business operations on January 1, 2015. Below is the anticipated SALES...

    The Bear Corporation will begin business operations on January 1, 2015. Below is the anticipated SALES BUDGET (in units): Jan.                 30,000 Feb.                 30,000 Mar.                60,000 Apr.                 20,000 ADDITIONAL INFORMATION      a.         Ending finished goods inventory should be equal to 10% of next month's sales projection. b.         Each unit requires 3 pounds of material at a raw material cost of $5 per pound. c:         Labor cost is $10 per unit produced. d.         Ending raw material inventory should be equal to 20%...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT