Can you please show work I am unclear on how to get these answers

6.)Grass Cutters Manufacturing produces lawn mowers. On March 31, Grass Cutters Manufacturing had 120 lawn mowers in inventory. The company has a policy that the ending inventory in any month must be 10% of the following month's expected sales. Grass Cutters Manufacturing expects to sell the following number of lawn mowers in each of next four months:

April

1,200 lawn mowers

May

2,450 lawn mowers

June

1,700 lawn mowers

July

1,200 lawn mowers

Required:

Make a production budget for the second quarter, with a column for each month and for the quarter.

Answer:

7.The Dover Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 80,000 units. Information about the various manufacturing overhead costs follows:

Variable rate

per unit

Total fixed

costs

Indirect materials

$2.00

Supplies

$1.60

Indirectlabour

$1.00

$120,000

Plant utilities

$0.20

$60,000

Repairs and maintenance

$0.80

$24,000

Depreciation on plant and equipment

$96,000

Insurance on plant and equipment.

$40,000

Plant supervision

$130,000

Required:

Prepare the manufacturing overhead budget for the Dover Company for the upcoming year.

Answer:

8.GerdieCompany has the following information:

Month Budgeted Sales

March$50,000

April53,000

May51,000

June54,500

July52,500

In addition, the gross profit rate is 40% and the desired ending inventory level is 30% of next month's cost of sales.

Required:

Make a purchases budget for April through June.

Answer:AprilMayJuneTotal

Desired ending inventory$9,180$9,810$9,450$9,450

PlusCOGS1,80030,60032,70095,100

Total less beginning inventory9,5409,1809,8109,540

Total purchases$31,440$31,230$32,340$95,010

9.Bauer Corporation anticipates the following sales revenue over afive monthperiod:

November

December

January

February

March

Sales revenue

$20,000

$22,000

$26,000

$18,000

$21,000

Bauer Corporation's sales are 40% cash and 60% credit. The Bauer Corporation's collection history indicates that credit sales are collected as follows:

Month of sale

20%

Month after sale

50%

Two months after sale

25%

Uncollectible

5%

Required:

Make a cash collections budget for each month in the quarter (January, February, and March) and for the quarter in total.

Answer:

10.The Elliot Corporation sells hammocks. On June 30, there were 70 hammocks in ending inventory and accounts receivable had a balance of $12,000. Sales of hammocks (in units) have been budgeted at the following levels for the upcoming months:

Accounts receivable, June 30

$12,000

Number of hammocks budgeted to be sold in July

350

Number of hammocks budgeted to be sold in August

420

Number of hammocks budgeted to be sold in September

370

Number of hammocks budgeted to be sold in October

300

The company has a policy that the ending inventory of hammocks should be equal to 20% of the number of hammocks to be sold in the following month. The Outdoor Leisure Store sells the hammocks for $100 each. The company's collection history shows that 40% of the sales in a month are paid for by customers in the month of sale, while the remainder is collected in the following month.

Required:

1Make a merchandise purchases budget showing how many hammocks should be purchased in each of the months including July, August, and September.

2.Make a cash collections budget for each of the months including July, August, and September.

Answer:

Part 1

Merchandise Purchases Budget

July

August

September

October

Budgeted unit sales

350

420

370

300

Desired ending inventory (20% of next month's sales)

84

74

60

Total needs

434

494

430

Less beginning inventory

70

84

74

Required purchases

364

410

356

PART 2

Cash Collections Budget

July

August

September

Budgeted unit sales

350

420

370

Selling price per unit

$100.00

$100.00

$100.00

Budgeted sales

$35,000

$42,000

$37,000

Accounts receivable, June 30

$12,000

July sales

$14,000

$21,000

August sales

$16,800

$25,200

September sales

$14,800

Total cash collections

$26,000

$37,800

$40,000

The managerial accountant at the Holly and Ivy Tree Store reported that the company anticipates sales of $600,000 in September and October, $625,000 in November, $635,000 in December, and note that the sales figure is $640,000 in January. The August sales revenue was equal to the September sales revenue. The managerial accountant establishes the prices at the Holly and Ivy Tree Store on its merchandise to ensure the company earns 45% gross profit on its sales. The managerial accountant expects the ending inventory at the store to equal 12% of the next month's cost of goods sold.

Compute the COGS, inventory, and purchases budget for October, November, and December.

Answer:

Explanation:Students need to compute the % amount of sales revenue: (100% - 45% = 55% to determine COGS)

Students need to compute the desired ending inventory ( 12% of the next month COGS.

Note: To get the December desired ending inventory, students use January sales = $640,000 55% = $352,000; January COGS = $352,000 12% = $42,240 (carry figure to December desired ending inventory, 12% of next month's COGS.)