Backyard Warehouse makes backyard birdhouses. The company sells the birdhouses to home improvement stores for $18 per birdhouse. Each birdhouse requires 2.0 board feet of wood, which the company obtains at a cost of $6 per board foot The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdhouses equal to 15% of the next month's sales. Sales data for the company is as follows: (Click the icon to view the sales data) (Click the icon to view additional data.) Read the requirements Data table More info In any given month, 10% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 70% of credit sales is collected in the month after the sale, 20% is collected two months after the sale, 6% is collected three months after the sale, and the remaining 4% is never collected. Assume that the total cost of direct materials purchases in December was $540,000. The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in the month after purchase. Hackyard Warehouse 1aies Bucget For the Ouarter Inded March 31 Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. Backyard Warehouse Production Budget For the Quarter Ended March 31 Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Backyard Warehosise Birect Materialt flutiget For ifee byarter tinded Mareh 31 Requirement 4. Prepare the cash collectons budget for danuaty February, and March as well as a summary for the first quarter (Round your ans Reivan the sales budpot prepared a Requifement 1 Review the direct mutonials budget pregared in Reguirement 3 Backyard Warehouse makes backyard birdhouses. The company sells the birdhouses to home improvement stores for $18 per birdhouse. Each birdhouse requires 2.0 board feet of wood, which the company obtains at a cost of $6 per board foot The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdhouses equal to 15% of the next month's sales. Sales data for the company is as follows: (Click the icon to view the sales data) (Click the icon to view additional data.) Read the requirements Data table More info In any given month, 10% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 70% of credit sales is collected in the month after the sale, 20% is collected two months after the sale, 6% is collected three months after the sale, and the remaining 4% is never collected. Assume that the total cost of direct materials purchases in December was $540,000. The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in the month after purchase. Hackyard Warehouse 1aies Bucget For the Ouarter Inded March 31 Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. Backyard Warehouse Production Budget For the Quarter Ended March 31 Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Backyard Warehosise Birect Materialt flutiget For ifee byarter tinded Mareh 31 Requirement 4. Prepare the cash collectons budget for danuaty February, and March as well as a summary for the first quarter (Round your ans Reivan the sales budpot prepared a Requifement 1 Review the direct mutonials budget pregared in Reguirement 3
