Hello Chegg,

This is a question within our homework assignment and I was hoping to get some answers as I am lost.

Thanks,

A not so great accounting student

Question 2.

Question 3.

Daisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimetres (cc) of solvent Q80 are required to manufacture each unit of Fineclay, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineclay 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 be equal to 2,100 units of Fineclay plus 15% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 7,000 units b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 37,800 cc of solvent Q80 c. The company maintains no work-in-process inventories. A sales budget for Fineclay for the last six months of the year follows: August September October November December Budgeted Sales in Units 24.500 28,000 35,000 21.000 14,000 7,000 Required 1. Prepare a production budget for Fineclay for the months of July to October. DAISY PRODUCTS LIMITED Production Budget August September October Total needs 2. Not available in Connect 3. Prepare a budget showing the quantity of solvent Q80 to be purchased for July, August, and September and for the quarter in total DAISY PRODUCTS LIMITED Raw Materials Purchases Budget Third Quarter August September Total solvent A80 needs Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet on April 30 is as follows MINDEN COMPANY Balance Sheet April 30 Assets Cash Accounts receivable, customers Inventory Buildings and equipment, net of depreciation $ 15,400 62,000 34,800 239,000 Total assets $351,200 Liabilities and Shareholders' Equity Accounts payable, suppliers Note payable Capital shares, no par Retained earnings $ 72,600 17,700 212,000 48,900 Total liabilities and shareholders' equity $351,200 The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as follows a. Sales are budgeted at $520,000 for May. Of these sales, $156,000 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of the April 30 receivables will be collected in May b. Purchases of inventory are expected to total S312,000 during May. These purchases will all be on account, 40% of all purchases are paid for in the month of purchase: the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May C. The May 31 inventory balance is budgeted at $104,000 d. Operating expenses for May are budgeted at $187,200, exclusive of depreciation. These expenses will e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the f. New refrigerating equipment costing $9,700 will be purchased for cash during May be paid in cash. Depreciation is budgeted at $5,200 for the month interest relates to May.) g. During May, the company will borrow $52,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year Required: 1. Prepare a cash budget for May. (Any "Repayments" and "interest" should be indicated by a minus sign.) MINDEN COMPANY Cash Budget For the Month Ended May 31 Total cash available Deduct Disbursements: Total cash disbursements Excess of receipts over disbursements Financing Total financing 2. Prepare a budgeted income statement for May. MINDEN COMPANY Budgeted Income Statement For the Month Ended May 31 Cost of goods sold Cost of goods sold 3. Prepare a budgeted balance sheet as of May 31. MINDEN COMPANY Budgeted Balance Sheet as of May 31 Assets Total assets Liabilities and ShareholderS' Equity Total liabilities and shareholders' equity