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 $16 per pair.
July
6,700
October
4,700
August
7,700
November
3,700
September
5,700
December
b.
All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:
42%
in the month of sale
48%
in the month following sale
10%
uncollectible
The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $134,000.
c.
The company maintains finished goods inventories equal to 11% of the following month's sales. The inventory of finished goods on July 1 will be 737 pairs.
d.
Each pair of swim fins requires 3 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 4,086 pounds.
e.
Geico compound costs $3.00 per pound. Crydon pays for 56% 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 $11,300 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
2.
Prepare a production budget for each of the months July through October. (Input all amounts as positive values.)
Production Budget
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
Neer's income statement also included $225,000 accrued warranty expense that will be deducted for tax purposes when paid. Neer's enacted tax rates are 30% for 2007 and 2008, and 24% for 2009 and 2010. The depreciation difference and warranty expen..
Printers Inc. manufactures and sells a mid-volume color printer (MC) and a high-volume color printer (HC). Each MC requires 100 direct labor hours to manufacture, and each HC requires 150 direct labor hours.
If paid the total amount owing of $6858 to ATO via my National Australia Bank Visa Card. A Credit card fee of $45 (equivalent to 0.0065%) was charged by the ATO in relation to this payment. Is this $45 credit card fee deductible?
the following items appeared in the accounting records of trigueros a retail music store that also sponsors concerts.
the balance sheet of marilyn and monroe was as follows immediately prior to the partnerships being liquidated cash
The fair market calue of 747 aircraft at december 31,2009 is 30,500,000. If the midwest chose to sell the aircraft on this date would it record a gain or loss on sale and if so, how much?
Net assets of the acquired company are revalued to their fair value and any excess of consideration transferred over fair value of net assets is allocated to goodwill.
ali and ahmed carrying business separately ascontractors jointly take up the work of constructing a research complex of
On December 31, the adjusted trial balance of Garg Employment Agency shows the following selected data. Prepare the closing entries for the temporary accounts at December 31.
Determination of Beneficiary's Income. A trust is authorized to make discretionary distributions of income and principal to its two beneficiaries, Roy and Sandy.
Greenville Corporation is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows:
What could explain Freda's willingness to spread her salary over a longer period of time?
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