SARASOTA COMPANY |
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Sales Budget |
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For the year ending December 31, 2017 |
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Quarter |
|||||
1 |
2 |
3 |
4 |
Year |
|
Expected Unit Sales |
216000 |
3000000 |
276000 |
408000 |
1200000 |
Unit Selling Price |
$38 |
$38 |
$38 |
$47 |
|
Total Sales |
$8208000 |
$11400000 |
$10488000 |
$19176000 |
$49272000 |
Expected Unit Sales:
1 = 1200000 * 18% = 216000
2 = 1200000 * 25% = 300000
3 = 1200000 * 23% = 276000
4 = 1200000 * 34% = 408000
SARASOTA COMPANY |
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Production Budget |
|||||
For the year ending December 31, 2017 |
|||||
Quarter |
|||||
1 |
2 |
3 |
4 |
Year |
|
Expected Unit Sales |
216000 |
3000000 |
276000 |
408000 |
|
Add: Desired Ending finished goods inventory |
75000 |
69000 |
102000 |
59400 |
|
Total required Units |
291000 |
369000 |
378000 |
467400 |
|
Less: Beginning Finished goods inventory |
54000 |
75000 |
69000 |
102000 |
|
Required production units |
237000 |
294000 |
309000 |
365400 |
1205400 |
Desired Ending finished goods inventory:
1 = 300000 * 25% = 75000
2 = 276000 * 25% = 69000
3 = 408000 * 25% = 102000
4 = (216000 * 110%) * 25% = 59400
Beginning Finished goods inventory:
1 = 216000 * 25% = 54000
SARASOTA COMPANY |
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Direct Materials Budget |
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For the year ending December 31, 2017 |
|||||
Quarter |
|||||
1 |
2 |
3 |
4 |
Year |
|
Units to be produced |
237000 |
294000 |
309000 |
365400 |
|
Direct Materials per unit |
2 |
2 |
2 |
2 |
|
Total Pounds required for production |
474000 |
588000 |
618000 |
730800 |
|
Add: Desired Ending Direct materials |
58800 |
61800 |
73080 |
50000 |
|
Total Materials Required |
532800 |
649800 |
691080 |
780800 |
|
Less: Beginning Direct Materials |
47400 |
58800 |
61800 |
73080 |
|
Direct Material Purchases |
485400 |
591000 |
629280 |
707720 |
|
Cost per Pound |
$12 |
$12 |
$12 |
$12 |
|
Total Cost of Direct Material Purchases |
$5824800 |
$7092000 |
$7551360 |
$8492640 |
$28960800 |
Desired Ending Direct materials:
1 = 588000 * 10% = 58800
2 = 618000 * 10% = 61800
3 = 730800 * 10% = 73080
4 = 500000 * 10% = 50000
Beginning Direct Materials:
1 = 474000 * 10% = 47400
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