aduae11
Dec 19, 2010, 12:15 PM
1- Budgeted Sales:
Planning Assumptions:
25% of all Sales are cash. Accounts receivable are collected 60% in the month of sale, 30% in the next month,
And with the final 10% in the third month.
Cost of Goods sold is 40% of sales. Inventory is purchased in the month prior to the sale, 70% is paid in the
Month of acquisition and 30% is paid the next month.
Operating Expenses: Commissions 2% of prior month's sales.
Supplies 1% current month Cost of Goods sold.
What are the budgeted November cash payments for Inventory purchases?
2- Partial Sales Budget information for Butch's Beef follows:
The ratio of sales to sales on account will remain stable throughout the quarter. Due to a recently implemented advertising campaign, Butch expects a 20% growth rate in sales each month.
What is the amount of Total Budgeted Sales (item "I" above).
3- Partial Sales Budget information for Brianna's Boogie Boards follows:
Brianna prepared the following inventory purchases budget. Brianna maintains an ending inventory balance equal to 10 % of the following month's cost of goods sold. April's budgeted cost of goods sold is $39,000. Unfortunately, banana board wax spilled on the bottom of the budget and some numbers are unreadable.
If sales for the entire quarter are $125,000,
What Gross Margin will be reported on the Pro Forma Income Statement?
4- Parker Company's sales are 50% in cash and 50% on credit. Seventy percent of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: September October November December, Total sales $50,000 $70,000 $60,000 $80,000
• What are the total cash receipts in December?
5- Leonardo Company plans to sell 24,000 units during the month of August. If the company has 5,000 units on hand at the start of the month, and plans to have 4,000 units on hand at the end of the month.
• Who many units must be produced during the month?
6- Champion Company produces and sells volleyballs. To guard against out of stock situations, the company requires that 20% of the next month's sales be on hand at the end of each month.
• What are the Budgeted sales of volleyballs over the next four months January February March April?
• What is the Budgeted production for March would?
7- - Ancun Company plans the following beginning and ending inventory levels (in units) for July: July 1 July 30 Raw material 80,000 100,000, Work in process 20,000 20,000, Finished goods 160,000 100,000. Two units of raw material are needed to produce each unit of finished product. If Cancun Company plans to sell 960,000 units during July.
• What is the number of units it would have to manufacture during July?
8- - The Kentucky Company has budgeted production for next year as follows: First Quarter, Second Quarter, Third Quarter, Fourth Quarter Production in units 20,000 24,000 32,000 28,000 . Five pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 5,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.
• What is the Budgeted purchases of raw materials in the second quarter?
Planning Assumptions:
25% of all Sales are cash. Accounts receivable are collected 60% in the month of sale, 30% in the next month,
And with the final 10% in the third month.
Cost of Goods sold is 40% of sales. Inventory is purchased in the month prior to the sale, 70% is paid in the
Month of acquisition and 30% is paid the next month.
Operating Expenses: Commissions 2% of prior month's sales.
Supplies 1% current month Cost of Goods sold.
What are the budgeted November cash payments for Inventory purchases?
2- Partial Sales Budget information for Butch's Beef follows:
The ratio of sales to sales on account will remain stable throughout the quarter. Due to a recently implemented advertising campaign, Butch expects a 20% growth rate in sales each month.
What is the amount of Total Budgeted Sales (item "I" above).
3- Partial Sales Budget information for Brianna's Boogie Boards follows:
Brianna prepared the following inventory purchases budget. Brianna maintains an ending inventory balance equal to 10 % of the following month's cost of goods sold. April's budgeted cost of goods sold is $39,000. Unfortunately, banana board wax spilled on the bottom of the budget and some numbers are unreadable.
If sales for the entire quarter are $125,000,
What Gross Margin will be reported on the Pro Forma Income Statement?
4- Parker Company's sales are 50% in cash and 50% on credit. Seventy percent of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: September October November December, Total sales $50,000 $70,000 $60,000 $80,000
• What are the total cash receipts in December?
5- Leonardo Company plans to sell 24,000 units during the month of August. If the company has 5,000 units on hand at the start of the month, and plans to have 4,000 units on hand at the end of the month.
• Who many units must be produced during the month?
6- Champion Company produces and sells volleyballs. To guard against out of stock situations, the company requires that 20% of the next month's sales be on hand at the end of each month.
• What are the Budgeted sales of volleyballs over the next four months January February March April?
• What is the Budgeted production for March would?
7- - Ancun Company plans the following beginning and ending inventory levels (in units) for July: July 1 July 30 Raw material 80,000 100,000, Work in process 20,000 20,000, Finished goods 160,000 100,000. Two units of raw material are needed to produce each unit of finished product. If Cancun Company plans to sell 960,000 units during July.
• What is the number of units it would have to manufacture during July?
8- - The Kentucky Company has budgeted production for next year as follows: First Quarter, Second Quarter, Third Quarter, Fourth Quarter Production in units 20,000 24,000 32,000 28,000 . Five pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 5,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.
• What is the Budgeted purchases of raw materials in the second quarter?