Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mia Company manufactures beach umbrellas, The company is now preparing detalled budgets for the third quarter and has assembled the following information to assist in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Mia Company manufactures beach umbrellas, The company is now preparing detalled budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $12 per unit. Sales in June were 45,000 units b. All sales are on account. On the basis of past experience, sales are collected in the following pattern: c. The company maintains finishegpoods inventories equal to 15% of the following month's sales. This requirement wir be met at the end of June: d. Each beach umbrella requires 4 metres of Gilden, a material that is sometimes hard to get. Therefore, the company requires that the inventory of Gilden on hand at the end of each month be equal to 50% of the following month's production needs The inventory of Gilden on hand at the beginning and end of the quarter will be as follows: d. Each beach umbrella requires 4 metres of Gilden, a material that is sometimes hard to get. Therefore, the company requires that the inventory of Gilden on hand at the end of each month be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be as follows: e. Gilden costs $0.80 per metre. One-half of a month's purchases of Gilden are paid for in the month of purchase, the remainder are paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $96,000. Required: 1. Prepare a sales budget, by month and in total, for the third quarter. Also, prepare a schedule of expected cash collections, by month and in total, for the third quarter \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Mia Company } \\ \hline \multicolumn{5}{|c|}{ Schedule of Expected Cash Collections } \\ \hline & July & August & September & Quarter \\ \hline \multicolumn{5}{|c|}{ Accounts receivable, June 30} \\ \hline \multicolumn{5}{|l|}{ July sales } \\ \hline \multicolumn{5}{|l|}{ August sales } \\ \hline \multicolumn{5}{|l|}{ Soptember sales } \\ \hline Total cash collections & $ & $ & $ & $ \\ \hline \end{tabular} 2. Prepare a production budget for each of the months July to October. 3. Prepare a materials purchases budget for Gilden, by month and in total, for the third quarter. Also, prepare a schedule of expected cash payments for Gilden, by month and in total, for the third quarter. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Mia Company } \\ \hline \multicolumn{5}{|c|}{ Schedule of Expected Cash Payments } \\ \hline & July & August & September & Quarter \\ \hline \multicolumn{5}{|c|}{ Accounts payable, June 30} \\ \hline \multicolumn{5}{|l|}{ July purchases } \\ \hline \multicolumn{5}{|l|}{ August purchases } \\ \hline \multicolumn{5}{|l|}{ Soptember purchases } \\ \hline Total cash payments & 0 & $ & $ & s \\ \hline \end{tabular}

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

Clinical Audit For Doctors

Authors: Dr. Bob Ghosh, Sir Liam Donalson, Dr. Chen Sheng Low, Margaret Keane, Dr. Bhoresh Dhamija

1st Edition

1906839018, 978-1906839017

More Books

Students also viewed these Accounting questions