Question
NOTE: the answers are given, please show how you made the budgets and got to the answers. Toronto Blue Jays manufactures baseballs for which peak
NOTE: the answers are given, please show how you made the budgets and got to the answers.
Toronto Blue Jays manufactures baseballs for which peak sales occur in August of each year. The company is now preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The marketing department has estimated sales as follows for the remainder of the year (in units):
The selling price per unit is: ($ 14)
All sales are on account. Based on past experience, sales are collected in the following pattern:
30% in the month of sale
65% in the month following sale
5% uncollectible
Sales for June totaled $25,000.
The company maintains finished goods inventories equal to 15 percent of the following months sales. This requirement will be met at the end of June
a. Sales budget for each of the months of July and August
(june- $56,000 and august $84000)
b. The schedule of expected cash collection in July and August from sales.
(july- $33050 august $61600)
c. The production budget for each of the months of July and August
(july- 4300, august 5850)
\begin{tabular}{|ll|} \hline July & 4,000 \\ \hline August & 6,000 \\ \hline September & 5,000 \\ \hline October & 2,000 \\ \hline \end{tabular}Step by Step Solution
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