Chrome File Edit View History Bookmarks People Tab Window Help 1 8 5 7 14% 0 Sun 8:54 AM Q DE . . . N Netflix . Charles ~ Messe TED Chimar if Tickets Conjuri Search Accept s Acader AY20- w Propos 5 Faculty N Canvas Course M McGra M MH X M https:/ C player-ui.mheducation.com/#/epub/sn_20d88#epubcfi(%2F6%2F372%5Bdata-uuid-fa4c2b63168c4a6aae1bdf014e96e8d7%5D!%2F4%2F2%5Bdata-uuid-6b45e451b6514c2e... O 4. Prepare a balance sheet as of September 30. EXERCISE 8-14 Sales and Production Budgets L LO8-2, 2 LO8-3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 11,000 12,000 14,000 13,000 The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to L Schedule 1 for guidance.) 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to L Schedule 1 for guidance.) 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to L Schedule 2 for guidance.) EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets LILO8-5, C LO8-6 The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 12,000 10,000 13,000 14,000 Da Noreen5e_Exer....pptm DaNoreen5e_Exer..pptm Da Noreen5e_Exer..pptm SSI_00785260 (1).pdf SSI_00785260.pdf Show Urban Adventours info@urbanadventours.com... Items: 16 All folders are up to date. Connected to: m.borgida@northeastern.eduChrome File Edit View History Bookmarks People Tab Window Help 3 15% Sun 8:52 AM Q DE . . . N Netflix o Charles ~ Messe TED Chimar If Tickets Conjuri Search Accept s Acader AY20- w Propos 5 Faculty N Canvas Course M McGra M MH X M https:/ C player-ui.mheducation.com/#/epub/sn_20d88#epubcfi(%2F6%2F372%5Bdata-uuid-fa4c2b63168c4a6aae1bdf014e96e8d7%5D!%2F4%2F2%5Bdata-uuid-6b45e451b6514c2e... Page 439 EXERCISE 8-10 Production and Direct Materials Budgets LILO8-3, LILO8-4 Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted UnitSales July $5,000 August 40,000 September 50,000 October 30,000 November 20,000 December 10,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 2. Examine the production budget that you prepared in (1) above. Why will the company produce more units than it sells in July and August, and fewer units than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. EXERCISE 8-11 Cash Budget Analysis L LO8-8 Da Noreen5e_Exer....pptm DaNoreen5e_Exer..pptm Da Noreen5e_Exer..pptm SSI_00785260 (1).pdf SSI_00785260.pdf Show Urban Adventours info@urbanadventours.com... Items: 16 All folders are up to date. Connected to: m.borgida@northeastern.edu