Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Osprey Corp. manufactures and sells a widget that has peak sales in the third quarter. The following information concerns operations for 2022 - the coming

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Osprey Corp. manufactures and sells a widget that has peak sales in the third quarter. The following information concerns operations for 2022 - the coming year - and the first two quarters of 2023 Osprey's sells widgets for $10 each. Budgeted unit sales for the next six quarters are as follows (all sales are on credit): Year 2022 Quarter Year 2023 Quarter 4 1 2 3 1 2 Budgeted unit 40,000 50,000 100,000 60,000 50.000 40,000 sales 80% of the receipts due from sales is collected in the quarter the sales were made and the remaining 20% is collected in the following quarter. On 12/31/21 the company's balance sheet showed $50,000 in accounts receivable, all of which will be collected in the first quarter of 2022 The company desires an ending finished goods inventory at the end of each quarter equal to 20% of the budgeted unit sales for the next quarter. On 12/31/21, the company had 8,000 widgets on hand. Six pounds of raw materials are required per widget. The company requires ending raw materials inventory at the end of each quarter equal to 20% of the following quarter's production needs. On 12/31/21 Osprey had 50,400 pounds of raw materials on hand. The raw materials costs $0.50 per pound. Raw materials are paid for in the following pattern: 70% in the quarter the purchases are made, and the remaining 30% paid in the following quarter. On 12/31/21 Osprey's balance sheet showed $70,000 in accounts payable for raw materials purchases, all of which will be paid in the first quarter of 2022. Question 1 What are Osprey's expected cash collections in the 1st quarter of 2022? Question 2 What are Osprey's expected cash collections in the 4th quarter of 2022? Question 3 How much of the 4th quarter 2022 sales will be collected in the 4th quarter of 2022? H You will need to prepare a Production Budget to answer question 4. Question 4 How many widgets need to be produced in the 2nd quarter of 2022? You will need to prepare a Direct Materials Budget to answer question 5. D Question 5 How many pounds of materials will need to be purchased in the 1st quarter of 2022? Question 6 What are the expected cash disbursements for materials in the 2nd quarter of 2022

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

Accounting And Finance

Authors: Michael J. Jones

1st Edition

1118932072, 9781118932070

More Books

Students also viewed these Accounting questions

Question

By default, arguments ( other than arrays ) are passed by _ _ _ _ _

Answered: 1 week ago

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago

Question

How can we confi rm both ourselves and others?

Answered: 1 week ago