Question
1)Prepare a direct materials budget for Gilden,, by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2
1)Prepare a direct materials budget for Gilden,, by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.)
July | August | september | quarter | |
Required Production in Units of Finished Goods | ||||
Units of Raw materials needed per unit of Finished Goods | ||||
Units of raw material needed to meet production | ||||
? | ||||
Total units of raw materials needed | ||||
? | ||||
Units of raw materials to be purchased | ||||
Unit cost of raw materials | $ | |||
cost of raw materials to be purchased |
Info:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: |
a. | The Marketing Department has estimated sales as follows for the remainder of the year (in units): |
The selling price of the beach umbrellas is $14 per unit. |
July | 41,500 | October | 31,500 |
August | 93,000 | November | 18,000 |
September | 62,000 | December | 18,500 |
b. | All sales are on account. Based on past experience, sales are collected in the following pattern: |
30% | in the month of sale |
65% | in the month following sale |
5% | uncollectible |
Sales for June totaled $588,000. |
c. | The company maintains finished goods inventories equal to 15% of the following month |
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