Any assistance would be greatly appreciated, please and thank you.
Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled: The company sells a single product at a price of $61 per unit. The estimated sales volume for the next six months is as follows: September October Novembar December 15,600 units 14,400 units 15.800 units 24,000 units 10,800 units 12,000 units 1 February . All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 6856 are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts recalvable (l.e., accounts receivable less allowance for uncollectible accounts will be $647,088 on September 30, 2016. Management's policy is to maintain ending finished goods inventory Bach month at a level equal to 30% of the next month's budooted sales. The finished goods inventory on September 30, 2016 is expected to be 4.320 units. To make an unit af finished product 4 pounds of materials arn rouirnd. Manajamant's policy is to have enough materials on hand at the end of each month to qual 40% of the next month's estimated usage. The raw materials inventory is expected to be 24.192 pounds on September 30, 2016 The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $109,382 on September 30, 2015. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2016. October November December Total Expected sales in unite Selling price per unit Total sales b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2016. October November December Total Cash collections from: September sales October sales November sales December sales Total cash collections 3 D O O S b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2016. October November December Total Cash collections from: Sepleriber sales Octobar salas November sales December sales Total cash collections S 0 S 0S 0 $ 0 c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2016. October November December Total Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of finished goods Quantity of goods sold d. Prepare a materials purchases budget in pounds, by month and in folal, for the fourth quarter of 2016 October November December Total Beginning inventory of raw materials Purchases of raw materials Raw materials available for use Desired ending inventory of raw materials Quarlily of raw materials to be used in production 0 0 0 0 0 0 0 e. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2016. (Do not round Intermediate calculations.) October November December Total Cash payments for: September purchases October purchases November purchase December purchases Total cash payments S 0 S 0S 0 $ 0
