Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BCDE 15. See parts a, b, c, and d. Worth 25 points Projected sales are given below for one of Florean Fortescue's main products January

image text in transcribed
BCDE 15. See parts a, b, c, and d. Worth 25 points Projected sales are given below for one of Florean Fortescue's main products January 25.000 units February 40,000 units March 65,000 units April 45.000 units May 35,000 units June 30.000 units Required: a) Prepare a sales budget and a schedule of expected cash collections by month for the first quarter. (no total column) 1) Prepare a budget showing the required production each month for the first quarter. (no total column) Prepare a row material purchases budget for each month for the first quarter. (no total for the quarter necessary). Prepare a budget showing the cash disbursements for row materials for March The product sells for $20 each and customers typically pay in the following manner: 50% pay in the month of sale, 30% pay in the month following 12 the sale, and 20% pay in the second month following the sale. November's total sales were $800,000 and December's total sales were $950,000. 13 Bad debts are negligible and can be ignored. 14 15 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on December 31 the finished goods 16 Inventory totaled only 4,000 units. 19 Each unit of product requires three pounds of specialized material, which is purchased for $3.00 per pound. Since the production of this 20 specialised material by Portescue's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of 21 each month equal to 30% of the next month's production needs. This requirement had been met on January 1 of the current year. 1 The Company Pays is suppliers son in the month of purchase, 40% in the month following purchase, and the remaining 10% in the second 24 month following the purchase

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_2

Step: 3

blur-text-image_3

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

Information Technology Auditing

Authors: Hall, J Scott Harr

3rd Edition

1133008046, 978-1439079119

More Books

Students also viewed these Accounting questions