Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data Table ual to 10% of Backyard Paradise makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $17 per birdfeeder. Each

image text in transcribed

Data Table ual to 10% of Backyard Paradise makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $17 per birdfeeder. Each birdfeeder requires 2.0 board feet of wood, which the company obtains at a cost of $6 per board foot. The company would like to maintain an ending stock of wood equal to 25% of the next month's production requirements. The company the next month B. (Click the i (Click the Units Read the requ 95,000 IVI LITE WUGILCI LIUGU IVICI LIIVI Month 80,000 73.000 75,000 March Quarter October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales. February projected sales. March projected sales April projected sales January February 75,000 89,000 $ 17 $ 17 $ Unit sales 98,000 262,000 89,000 Multiply by: Sales price per unit 17 17 $ 98,000 Total sales revenue $ 1,275,000 $ 1,513,000 $ 1,666,000 $ 4,454,000 110,000 Cash sales 249,900 $ 668,100 $ 191,250 $ 226,950 $ 1,083,750 1,286,050 Print Done Credit sales 1,416,100 3,785,900 $ 1,275,000 $ 1,513,000 $ 1.666,000 $ 4,454,000 Total sales revenue - X Requirement 2. Prepare the production budget for the first three months of the year, as well as a summar More Info Backyard Paradise Production Budget In any given month, 15% of the total sales are cash sales, while the remainder are credit sales. For the Quarter Ended March 31 Month March Quarter January 75,000 The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected February 89,000 24500 Unit sales 98,000 262,000 22250 Plus: Desired ending inventory Total needed 97250 113500 Assume that the total cost of direct materials purchases in December was $540,000. The company pays 30% of its direct materials purchases in the month of purchase, and pays the remaining 70% in the month after purchase Less: Beginning inventory Units to produce Print Done Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Financial Resources

Authors: Mick Broadbent, John Cullen

3rd Edition

1138134546, 978-1138134546

More Books

Students also viewed these Accounting questions

Question

Describe how to distinguish needs from wants.

Answered: 1 week ago

Question

11.1 Explore the role of labor unions.

Answered: 1 week ago

Question

11.3 Discuss laws affecting collective bargaining.

Answered: 1 week ago