Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exi The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year Budgeted sales (units) 1st

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Help Save & Exi The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year Budgeted sales (units) 1st Ostarter 7,900 2nd Quarter 6,980 3rd Quarter 6,600 4th Quarter 7,100 The company expects to start the first quarter with 1,580 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1760 units. In addition, the beginning raw materials inventory for the first quartet is budgeted to be 3720 kilograms and the beginning accounts payable for the first quarter are budgeted to be $15,420. Each unit requires two kilograms of raw material that costs $5 per kilogram. Management desires to end each quarter with an Inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,200 kilograms. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter Required: 1. Prepare the company's production budget for the upcoming fiscal year, GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 1. Prepare the company's production budget for the upcoming fiscal year, GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter Your 4th Quarter 3rd Quarter Total units needed 2-a. Prepare the company's direct materials budget. GAEBER INDUSTRIES Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms) 2-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year (Round your answer to the nearest whole dollar amount.) Year GAEBER INDUSTRIES Schedule of Expected Cash Disbursements for Materials 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Accounts payable, beginning balance 1st Quarter purchase 2nd Quarter purchase 3rd Quarter purchase 4th Quarter purchase 0 015 0 S 0$ Total cash disbursements for materials $

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

Using Financial Accounting

Authors: Carl S. Warren, Jeff Jones, Amanda Farmer

1st Edition

0357507851, 9780357507858

More Books

Students also viewed these Accounting questions