Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:
a.
The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins):
The selling price of the swim fins is $11 per pair.
July
5,100
October
3,100
August
6,100
November
2,100
September
4,100
December
b.
All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:
43%
in the month of sale
47%
in the month following sale
10%
uncollectible
The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $138,000.
c.
The company maintains finished goods inventories equal to 10% of the following month's sales. The inventory of finished goods on July 1 will be 510 pairs.
d.
Each pair of swim fins requires 2 pounds of geico compound. To prevent shortages, the company would like the inventory of geico compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of geico compound on hand on July 1 will be 2,080 pounds.
e. Geico compound costs $3.00 per pound. Crydon pays for 55% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $10,900 on July 1.
Required:
1a: Prepare a sales budget, by month and in total, for the third quarter.
Quarter - Total
Total budgeted sales
$
1b.
Prepare a schedule of expected cash collections, by month and in total, for the third quarter. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)
Schedule of Expected Cash Collections
Accounts receivable, beginning balance
July sales
August sales
September sales
Total cash collections
July August September October
2.
Prepare a production budget for each of the months July through October.
(Input all amounts as positive values.)
Production Budget
Augus
Budgeted sales (pairs)
:
Total needs
Required production (pairs)
3a.
Prepare a direct materials budget for geico compound, by month and in total, for the third quarter.(Do not round intermediate calculations. Round your answers to the nearest dollar amount. Input all amounts as positive values.)
Direct Materials Budget
Production needs (lbs.)
Raw materials to be purchased
Cost of raw materials to be purchased
3b.
Prepare a schedule of expected cash disbursements for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required.)
Schedule of Expected Cash Disbursements
Accounts payable, beginning balance
July purchases
August purchases
September purchases
Total cash payments
How much should the town report as property tax revenue in its General Fund statements for the year 2009?
The company's cost formula for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the ..
On April 18, 2010, Jane Junipner purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2010 she purchased an additional 90 shares for $900. On November 28, 2010, she sold 48 shares which could not be specifically identified, for ..
Based on the article, your review of the firm and anything else you want to bring in (e.g., comparisons with other firms); how did the firm do? How did this compare to previous periods and to expectations? If you had the money to invest, would thi..
On November 1, Prince Vacuum Company offered special early retirement benefits to those employees who were eligible. This program was in effect until year-end. Prince should recognize a liability and an expense related to these special termination..
What is the purpose of closing the books? After closing, what is the amount of owner's equity that will be reported on the balance sheet?
Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage for your chosen company.
What criteria must be met before revenues can be recognized on a modified accrual basis? For example, when are property taxes and sales taxes included in revenues? Please use an example of a government entity that you are familiar with in your respon..
Callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent
explain the independence between the auditor and the client on financial statement audit engagementsno word
Assume that Nigel wouldlike to be debt-free by the time that he replaces the machine, and that he wants to buy the replacement machine out right, rather thantaking out another loan.
In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd