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Dallas Company manufactures table cloths. The company is in the process of developing next quarter's budgets and has gathered the following information for the budget preparation:
a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):
July	25,000	October	20,000
August	40,000	November	25,000
September	39,000	December	37,500
a. The selling price.	25
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
25%	in the month of sale
70%	in the month following sale
5%	uncollectible
c. Sales for June totaled $525,000.
d. The company desires to keep a finished goods inventory equal to 20% of the following month's sales. The June ending inventory will meet this requirement.
e. Each table cloth requires 6 feet of a special linen, can be hard to source at times. The company requires that the ending inventory of linen be equal to 60% of the following month's production needs.
Inventory on hand
30-Jun	95,000	feet
30-Sep	?	feet
f. The linen costs $1.00 per foot.
1. Calculate the budgeted sales, by month and in total, for th quarter.
	July	August	September	Quarter
Budgeted units
Selling price per unit
Budgeted sales
2. Calculate the net expected cash balances, by month and in total, for the quarter.
The expected cash collections from sales for the third quarter:
	July	August	September	Quarter
June Sales
July sales:
August sales:
September sales:
Total cash collections
3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
	The production budget (quantity of beach umbrellas) for July-October:
	July	August	September	October
Budgeted unit sales
Add desired units of ending finished goods inventory
Total needs
Less units of beginning finished goods inventory
Required production in units
4. Calculate the quantity of material (in feet) that needs to be purchased by month and in total. Also calculate the raw material purchases for each month.
The direct materials budget for the third quarter:
	July	August	September	October
Required production in unitsof finished goods
Units of raw materials needed per unit of finished goods
Units of raw materials needed to meet production
Add desired units of ending raw materials inventory*
Total units of raw materials needed
Less units of beginning raw materials inventory
Units of raw materials to be purchased
Unit cost of raw materials
Cost of raw materials to be purchased
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				Enter your Calculations in the yellow cells
				Flexible Budgets
				Sam the Sales Manager is confused with his review of the budget to actual report from last month. Sam felt he exceeded his goals and did not spend all of his budget, but the report is showing negative numbers.
					Budget	Actual	variance
				Sales in units	80,000	100,000	(20,000)
				Variable Expenses
				Sales commissions	5,600	6,000	(400)
				Marketing expense	12,000	13,500	(1,500)
				Travel expense	7,800	9,200	(1,400)
				Exhibit expenses	5,000	4,500	500
					30,400	33,200	(2,800)
				Fixed Expenses
				Rent	1,500	1,500
				Sales Salaries	1,200	1,200
				Admin expenses	800	800
				Depreciation sales -autos	500	500
				Total fixed costs	4,000	4,000
				Total expenses
				Required: Reformat the budget report using the flexible budget then summarize the Sales activity for last month below.
					step 1		step 2		setp 3	step 4
					calc per unit		cal budget at actual= per unit x 100k		budget - actual	Determine if variiance is Favorable or Unfavorable
					(A) per unit	(B) Orig Budget	(c)Budget	(d)Actual	(E)Difference	F/U
				Sales in units		80,000	100,000	100,000
				Variable expenses $
				Total Variable expenses
				Fixed expenses $					0
				Total Fixed expenses
				Total expenses