1. Coconut company has a very famous product, namely coconut milk. In accordance with the historical data available in the following years, the highest sales were in May throughout the year. The following is data regarding the sales budget per unit for the second quarter:

April May June Total

Budgeted sales (all on account). . . . 30,000 50,000 20,000 100,000

Alternating price is $ 10. Based on previous experience, the company managed to attract 70% of the money from existing sales for the month and 30% the following month. Bad debts are avoided and considered non-existent. March saw an ending of $ 78,000 Account Receivable.

At this time, the company is also preparing a production budget for the second quarter. Based on existing data, at the end of the month, inventory must equal the weight of 10% on the following month's sales. The ending inventory in March is 2,000 units. The assumption for the ending inventory for June is 3,000.

Question:

a. Create a schedule of expected cash collections from sales for the second quarter.

b. Make a production budget for the second quarter in the budget. Show the number of units that will be produced each month and quarter in the total.

2. Blooming is a company engaged in providing food to hospitals which are located in one of the well know hospitals in a big city. the following is the planning budget and flexible budget for July :

Blooming

Planning Budget

For the Month Ended July 31

Budgeted meals ( q ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18,000

Revenue ($4.50 q ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,000

Expenses:

Raw materials ($2.40 q ) . . . . . . . . . . . . . . . . . . . . . . . . . 43,200

Wages and salaries ($5,200 1 $0.30 q ) . . . . . . . . . . . . . .10,600

Utilities ($2,400 1 $0.05 q ) . . . . . . . . . . . . . . . . . . . . . . .3,300

Facility rent ($4,300) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300

Insurance ($2,300) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,300

Miscellaneous ($680 1 $0.10 q ) . . . . . . . . . . . . . . . . . . . 2,480

Total expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,180

Net operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,820

The following is data for actual result in the company :

Blooming

Actual Result

For the Month Ended July 31

Budgeted meals ( q ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,800

Revenue ($4.50 q ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $83,000

Expenses:

Raw materials ($2.40 q ) . . . . . . . . . . . . . . . . . . . . . . . . . 41,000

Wages and salaries ($5,200 1 $0.30 q ) . . . . . . . . . . . . . .12,000

Utilities ($2,400 1 $0.05 q ) . . . . . . . . . . . . . . . . . . . . . . . 3,500

Facility rent ($4,300) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300

Insurance ($2,300) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100

Miscellaneous ($680 1 $0.10 q ) . . . . . . . . . . . . . . . . . . .2,500

Total expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,400

Net operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,600

Question :

Make an activity variance and revenue & spencing variance analysis for july.

Thanks:)