Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and assembled the following information to assist in the budget

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and 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): July 34,500 October 24,500 August 79,000 November11,000 September48,000 December 11,500 The selling price of the beach umbrellas is $12 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 654 in the month following sale 5% uncollectible Sales for June totaled $336,000 c The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden 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: June 30 82,350 feet September 30 ? feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gliden is paid for in the month of purchase: the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $56,120 Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total , for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August September, and October 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 4 Req3 and 5 Req 6 Calculate the estimated sales, by month and in total, for the third quarter. July August September Quarter Budgeted sales Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Reg 4 and 5 Req 6 Calculate the expected cash collections, by month and in total, for the third quarter. July August September Quarter Total cash collections Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 and 5 Req 6 Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. July August September October Required production in units Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Reg 4 and 5 Req 6 Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.) Show less July August September Quarter Total units of raw materials to be purchased Cost of raw materials to be purchased Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 and 5 Req 6 Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. July August September Quarter Total cash disbursements

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_2

Step: 3

blur-text-image_3

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

Forensic And Investigative Accounting

Authors: Professor D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

8th Edition

0808046241, 9780808046240

More Books

Students also viewed these Accounting questions

Question

1. Dont say, This is easy, I know you can do it.

Answered: 1 week ago