Prepare the production budgets and schedule for the year

Assignment Help Managerial Accounting

Reference no: EM132786093

Question - Shown below is the sales forecast for Tulip's industry. For the first four Quarter of the coming year. Quarter 1 sales (in units) are 40 000 increases in sequent by the multiple of 20 000 for the rest of quarters except for the last quarter sales are 50 000 units.

Tulip's single product sells for 8$.

Sales collected in the following pattern, 75% in the quarter of sales, and the remaining 25% in the following quarter. The financial statement position (FSP) showed $65 000 balance of account receivables. All of which will be collected in the first quarter.

The company desires an ending finished goods inventory at the end each quarter equal to 30% of the budget sales unit sales for the next quarter. It had 12 000 units in hand on December, 31. Beginning balance of finished goods is 10 000 units

Five pounds of raw materials are required to complete one unit of product. Tulip Company require ending raw materials inventory at the end of each quarter equal to 10% of following quarter's production needs. On December, 31 the raw materials on hand are 23 000 Pounds. Beginnings balance of raw materials is 18000 Pounds.

The raw materials cost $0.08 per pound. Raw materials purchased are paid in the following pattern: 60% paid in the quarter of purchases are made the remaining 40% paid in the following quarter. On January the company FSP showed $81 500 in account payable for raw materials purchase.

Required - Prepare the following budgets and schedule for the year, showing quarterly and total figures:

a. A sales budget and a schedule of expected cash collection.

b. A production Budget.

c. A direct materials budget and a schedule of expected cash payments for purchases Martials.

d. A direct labor budget if direct labor's rate and cost are 0.40 and 18$ sequentially.

e. A MOH budget taking in consideration the Variable MOH rate is $4 and fixed MOH are $60 000, the only none-cash items is depreciation, which is $15 000 per quarter.

f. An ending finished goods inventory Budget.

Reference no: EM132786093

Questions Cloud

Compute the total cost in the May : If the cost per equivalent unit is P3.00 for materials and P5.50 for conversion costs, compute the total cost in the May 30 work in process inventory

Write up a narrative overview of music characteristics : Write up a narrative overview of music characteristics of all four stylistic periods based upon your understanding of music through the different time periods.

Albert carr theory of business is poker game : Discuss why Goldman Sachs (use research from the CU library for Goldman Sachs) was a disciple of Albert Carr's theory of "business is a poker game

Discuss the characteristics of all three periods : Compare and discuss the differences in the way vocal music was a song in all three periods. Include your understanding of the varied styles of choral music.

Prepare the production budgets and schedule for the year : On January the company FSP showed $81 500 in account payable for raw materials purchase. Prepare the production budgets and schedule for the year

Approximate present value of human capital : What is the approximate present value of her human capital on her 30 th birthday?

How would respond if the child is a toddler or a preschooler : How would you respond if the child is a toddler or a preschooler? Using this scenario provide an informed response for each age group that is based on the role

Prepare Gipit Company cash budget for the quarter ended June : Gipit's operating expenses amount to 40% of its gross revenue. Prepare Gipit Company cash budget for the quarter ended June

Affordable care act includes tax on high-cost insurance plan : Though Health benefits have traditionally not been taxed, the Affordable Care Act includes a tax on high-cost insurance plans (effective in 2018).

User Account

All Pages