Data Months \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{1}{|c|}{ June } & July & \multicolumn{1}{c|}{ August } & September \\ \hline Budgeted unit sales & 8,400 & 10,000 & 12,000 & 13,000 \\ \hline \end{tabular} - Selling price per unit - Accounts receivable, beginning balance $0 - Sales collected in the month sales are made 40% - Sales collected in the month after sales are made 60% - Desired ending finished goods inventory is 20% of the budgeted unit sales of the next month - Finished goods inventory, beginning - Raw materials required to produce one unit 5 pounds - Desired ending inventory of raw materials is 10% of the next month's production needs - Raw materials inventory, beginning pounds - Raw material costs $2.00 per pound - Raw materials purchases are paid 30% in the month the purchases are made and 70% in the month following purchase - Accounts payable for raw materials, beginning balance - Direct labor wage rate $15 hour - Direct labor needed to produce one unit 2 hours - Variable \& selling administrative expenses $1.80 per unit - Fixed selling \& administrative expenses $60,000 per month Review Problem: Budget Schedules Construct the sales budget Budgeted unit sales Selling price per unit Total sales \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Months } \\ \hline June & July & August & September \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \hline \end{tabular} Construct the schedule of expected cash collections Beginning balance accounts receivable First-month sales Second-month sales Third-month sales Fourth-month sales Total cash collections \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{5}{|c|}{ Months } \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \hline \end{tabular} Construct the production budget Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning finished goods inventory \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Months } & \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Required production in units Construct the raw materials purchases budget Required production (units) Raw materials required to produce one unit (pounds) Production needs (pounds) Add desired ending inventory of raw materials (pounds) Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased (pounds) Cost of raw materials per pound Cost of raw materials to be purchased Construct the schedule of expected cash payments Beginning balance accounts payable First-month purchases Second-month purchases Third-month purchases Fourth-month purchases Total cash disbursements \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Months } & \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Construct the schedule of expected direct labor Required production in units Direct labor hours per unit Total direct labor Cost direct labor Total direct labor cost Unit product cost Direct materials Direct labor Manufacturing overhead (Q11) Unit product cost \begin{tabular}{|l|l|l|} \hline Quantity & Cost & Total \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Gross margin Unit sales (a) Unit product cost (b) Estimated cost of goods sold (a)(b) Total sales (a) Cost of goods sold (b) Estimated gross margin (a) - (b) Administrative expenses Budgeted unit sales Variable selling and administrative expenses Total variable expense Fixed selling and andministrative expenses Total selling and administrative expenses Net operating income Gross margin Selling \& administrative expenses Net operating income 1. What are the budgeted sales for July? 2. What are the expected cash collections for July? 3. What is the accounts receivable balance at the end of July? 4. According to the production budget, how many units should be produced in July? 5. If 61.000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? 6. What is the estimated cost of raw materials purchases for July? 7. If the cost of raw material purchases in June is $88,880, what are the estimated cash distursements for raw materials purchases in July? 8. What is the estimated accounts payable balance at the end of July? 9. What is the estimated raw materials inventory balance at the end of July? 11. If the combanv always uses an estimated predetermined plantwide overhead rate of $10 per direct labor-hour, what is the estimated unit product cost? 12. What is the estimated finished goods inventory balance at the end of July? 13. What is the estimated cost of goods sold and gross margin for July? 14. What is the estimated total selling and administrative expense for July? 15. What is the estimated net operating income for July? Data Months \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{1}{|c|}{ June } & July & \multicolumn{1}{c|}{ August } & September \\ \hline Budgeted unit sales & 8,400 & 10,000 & 12,000 & 13,000 \\ \hline \end{tabular} - Selling price per unit - Accounts receivable, beginning balance $0 - Sales collected in the month sales are made 40% - Sales collected in the month after sales are made 60% - Desired ending finished goods inventory is 20% of the budgeted unit sales of the next month - Finished goods inventory, beginning - Raw materials required to produce one unit 5 pounds - Desired ending inventory of raw materials is 10% of the next month's production needs - Raw materials inventory, beginning pounds - Raw material costs $2.00 per pound - Raw materials purchases are paid 30% in the month the purchases are made and 70% in the month following purchase - Accounts payable for raw materials, beginning balance - Direct labor wage rate $15 hour - Direct labor needed to produce one unit 2 hours - Variable \& selling administrative expenses $1.80 per unit - Fixed selling \& administrative expenses $60,000 per month Review Problem: Budget Schedules Construct the sales budget Budgeted unit sales Selling price per unit Total sales \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Months } \\ \hline June & July & August & September \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \hline \end{tabular} Construct the schedule of expected cash collections Beginning balance accounts receivable First-month sales Second-month sales Third-month sales Fourth-month sales Total cash collections \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{5}{|c|}{ Months } \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \hline \end{tabular} Construct the production budget Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning finished goods inventory \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Months } & \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Required production in units Construct the raw materials purchases budget Required production (units) Raw materials required to produce one unit (pounds) Production needs (pounds) Add desired ending inventory of raw materials (pounds) Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased (pounds) Cost of raw materials per pound Cost of raw materials to be purchased Construct the schedule of expected cash payments Beginning balance accounts payable First-month purchases Second-month purchases Third-month purchases Fourth-month purchases Total cash disbursements \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Months } & \\ \hline June & July & August & September & Total \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Construct the schedule of expected direct labor Required production in units Direct labor hours per unit Total direct labor Cost direct labor Total direct labor cost Unit product cost Direct materials Direct labor Manufacturing overhead (Q11) Unit product cost \begin{tabular}{|l|l|l|} \hline Quantity & Cost & Total \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Gross margin Unit sales (a) Unit product cost (b) Estimated cost of goods sold (a)(b) Total sales (a) Cost of goods sold (b) Estimated gross margin (a) - (b) Administrative expenses Budgeted unit sales Variable selling and administrative expenses Total variable expense Fixed selling and andministrative expenses Total selling and administrative expenses Net operating income Gross margin Selling \& administrative expenses Net operating income 1. What are the budgeted sales for July? 2. What are the expected cash collections for July? 3. What is the accounts receivable balance at the end of July? 4. According to the production budget, how many units should be produced in July? 5. If 61.000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? 6. What is the estimated cost of raw materials purchases for July? 7. If the cost of raw material purchases in June is $88,880, what are the estimated cash distursements for raw materials purchases in July? 8. What is the estimated accounts payable balance at the end of July? 9. What is the estimated raw materials inventory balance at the end of July? 11. If the combanv always uses an estimated predetermined plantwide overhead rate of $10 per direct labor-hour, what is the estimated unit product cost? 12. What is the estimated finished goods inventory balance at the end of July? 13. What is the estimated cost of goods sold and gross margin for July? 14. What is the estimated total selling and administrative expense for July? 15. What is the estimated net operating income for July