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Credit sales are collected: 30% in the month of the sule pow in the following month Raw materials purchases are pald: 20% in the month
Credit sales are collected: 30% in the month of the sule pow in the following month Raw materials purchases are pald: 20% in the month of purchase gos in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials invertory should equal 20% of the following month's raw moterials production needs. Required: a. What are the budgeted sales for August? b. What are the expected cash collections for August? c. According to the production budget, how many units should be produced in August? d. If 39.680 pounds of raw materials are needed for production in September, how many pounds of raw materials should be purchased in August? e. What is the estimated cost of raw materials purchases for August? f. If the cost of raw material purchases in July is $120,627, then in August what are the total estimated cash disbursements for taw materlals purchases? 9. What is the total estimated direct labor cost for August assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced
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