Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all of gaylord corporation's sales are on account. Thirty five percent of the sales on account are collected in the month following sale, and the

all of gaylord corporation's sales are on account. Thirty five percent of the sales on account are collected in the month following sale, and the remainder are collected in the second month following the sale. the following are budgeted sales data for the company

a)

The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit.

(b) Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month.
(c) The ending finished goods inventory equals 20% of the following months unit sales.
(d)

The ending raw materials inventory equals 10% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.40 per pound.

(e) Twenty five-percent of raw materials purchases are paid for in the month of purchase and 75% in the following month.
(f)

The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours.

(g)

The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $69,000.

Need the BOLD answers.

5. if 106,000 pounds of raw materials are needed to meet production for august, how many pounds of raw materials should be purchased in july.

6. What is the estimated cost of raw materials purchases for July?

7. In july what are the total estimated cash disbursements for raw material purchases? Assume the cost of raw materials purchases in june is 140352

9. What is the estimated raw material inventory balance at the end of july?

12. What is the estimated finished goods inventory balance at the end of july?

14. what is the estimated total selling and administrative expenses for July?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Disruption In The Audit Market

Authors: Krish Bhaskar, John Flower

1st Edition

0367220660, 978-0367220662

More Books

Students also viewed these Accounting questions

Question

Draw the structure of diethyl ether, once used as an anesthetic.

Answered: 1 week ago