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Budgeting date Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Budgeted unit sales 80,000 30,000 60,000 70,000 90,000 80,000 Selling price
Budgeting
date | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 1 | Quarter 2 |
Budgeted unit sales | 80,000 | 30,000 | 60,000 | 70,000 | 90,000 | 80,000 |
Selling price per unit | $12 | |||||
Accounts receivable, beginning balance | $40,000 | |||||
Sales collected in the quarter sales are made | 80% | |||||
Sales collected in the quarter after sales are made | 15% | |||||
Desired ending finished goods inventory is | 20% | of the budgeted unit sales of the next quarter | ||||
Finished goods inventory, beginning | 15,000 | units | ||||
Raw materials required to produce one unit | 3 | pounds | ||||
Desired ending inventory of raw materials is | 20% | of the next quarter's production needs | ||||
Raw materials inventory, beginning | 30,000 | pounds | ||||
Raw material costs | $1.50 | per pound | ||||
Raw materials purchases are paid | 65% | in the quarter the purchases are made | ||||
and | 35% | in the quarter following purchase | ||||
Accounts payable for raw materials, beginning balance | $90,000 |
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