Question

Answer 1

SALES BUDGET
			Oct	Nov	Dec	QUARTER
Budgeted Sales units			6,000	7,000	10,000	23,000
Selling price per unit			54	54	54	54
Total Sales			324,000	378,000	540,000	1,242,000
EXPECTED CASH COLLECTIONS
			Oct	Nov	Dec	QUARTER
Accounts recievable beginning			238,680			238,680
Octover sales			97,200	220320		317,520
Nov sales				113400	257040	370,440
Dec sales					162,000	162,000
Total Cash Collections			335,880	333,720	419,040	1,088,640
PRODUCTION BUDGET
			Oct	Nov	Dec	QUARTER	Jan	Feb
Budgeted Sales Units			6,000	7,000	10,000	23,000	4,500	5,000
Add: Desired Ending Finished inventory			2,100	3,000	1,350	1,350	1,500
Total Needs			8,100	10,000	11,350	24,350	6,000
Less: Beginning Finished Inventory			1,800	2,100	3,000	1,800	1,350
Required Production in units			6,300	7,900	8,350	22,550	4,650
RAW MATERIAL PURCHASE BUDGET
			Oct	Nov	Dec	QUARTER	Jan
Budgeted Producction Units			6,300	7,900	8,350	22,550	4,650
RM required per unit			4	4	4	4	4
Total RM requirement			25,200	31,600	33,400	90,200	18,600
Add: Desired Ending Inventory			12,640	13,360	7,440	7,440
Total needs			37,840	44,960	40,840	97,640
Less: Beginning Inventory			10,080	12,640	13,360	10,080
Purchase Units			27,760	32,320	27,480	87,560
Cost price per unit			4.00	4.00	4.00	4.00
Budgeted Purchase in $			111,040	129,280	109,920	350,240
EXPECTED CASH PAYMENTS
			Oct	Nov	Dec	YEAR
Beginning Accounts payable			30,384			30,384
Oct Month purchase			77728	33312		111,040
Nov month purchase				90496	38784	129,280
Dec month purchase					76944	76,944
Total Cash disbursement			108,112	123,808	115,728	347,648