Prepare a sales budget by month

Assignment Help Managerial Accounting
Reference no: EM13165540

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).

1943_Prepare a sales budget by month.PNG

(b)All sales are on account. Based on past experience, sales are collected in the following pattern:
30% in the month of sales
65% in the month following sales
5% uncollectible
Sales for June totaled $300,000.
(c)The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June.
(d)Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at beginning and end of the quarter will be:

481_Prepare a sales budget by month1.PNG

(e)Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $76,000.

1.Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter.

2. Prepare a production budget for each of the months July-October.

3. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter.

Reference no: EM13165540

Doral company-operating income or breakeven

The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 pe

Describe the purpose of a flexible budget

Describe the purpose of a flexible budget. Suppose a manager claims flexible budgets are useful because costs are difficult to predict and flexibility is needed to change bu

Calculate relevant per unit cost and alternative

Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are:

Is noailles being unfairly penalised if she implements jit

Is Noailles being unfairly penalised if she implements JIT? What should Noailles do? What should Eluard do? Is Noailles correct in characterising some of the financial benefit

How many units would we need to sell to break even

Assume that we are manufacturing a product and assume that the sales price per unit is $60 and the variable cost is $20 per unit and the fixed cost is $80,000; a) How many uni

How your answers would change now that you have gained new

In Module 1, the first required assignment asked you to examine the course and relate it to a current, real-world event or recent news story. Based on what you have learned in

Explain what a transfer price is

ACC202 MANAGEMENT ACCOUNTING - Explain what a transfer price is. What are the different types of transfer prices that can be used and why are these different types of transfe

Question on material quantity variance

The following materials standards have been established for a particular product: What is the materials quantity variance for the month?


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd