Question
1. Blakes Buckets has the following information available for the last quarter budget of 2013: Estimated sales in number of buckets for October, November, December,
1. Blakes Buckets has the following information available for the last quarter budget of 2013:
Estimated sales in number of buckets for October, November, December, January, and February are 38,000, 42,000, 46,000, 37,000, and 41,000 respectively. Each bucket sells for $20.
The ending FG and RM inventories should be 15% of the next months demand.
FG inventory is 5,700 buckets and RM inventory is 17,100 feet at 9/30/13.
Each bucket requires 3 feet of direct materials @ $2 per foot.
The collection pattern for accounts receivable is as follows: 75% in the month of sale and the remaining 25% in the month after sale. Blake expects no bad debts and no customers are given cash discounts. The 9/30/13 balance in A/R is $117,500.
Accounts payable relates solely to raw materials. A/P are paid 60% in the month of purchase and 40% in the month after purchase. No discounts are given for prompt payment. The 9/30/13 balance in accounts payable is $68,500.
Based on this information, prepare the sales, A/R, production, purchases, and A/P schedules.
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