P9-59A Backyard Paradise makes birdfeeders. What is written there is correct. I just cannot figure out the rest.
P9-59A Sales Budget January February March February March quarter Cash Collection Budget January Cash Sales in current month 456,000 Collection on credit sales Cash 456,000 528,000 552000 1,536,000 528,000 552000 1,536,000 Credit 1,054,000 1,232,000 1,288,000 3,584,000 Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter. 1. Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit.) 2. Prepare the production budget. 3. Prepare the direct materials purchases budget. Assume the company needs 105,000 board feet of wood for production in April 4. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter. Total 1,520,000 1,750,000 60% month after sale 1,840,000 5,120,000 3096 2 months after sale 599 3 months after sale Total Collections Production Budget January February March Unit Sales 760001 88000 quarter 92000 256,000 plus desired ending inventory TOTAL less beginning linventory 17,600 93600 18,400 106400 20,200 1 12200 20,200 276,200 February March quarter Cash Payment Budget January Cash Purchases payment 15,200 17,500 18,400 15,200 Units to Produce 78,400 88,800 93,800 261,000 Backyard Paradise makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $20 per birdfeeder. Each birdfeeder requires 1.0 board feet of wood, which the company obtains at a cost of S4 per board foot. The company would like to maintain an ending stock of wood equal to 15% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdfeeders equal to 20% of the next month's sales. Sales data for the company is as follows: (Click the icon to view the sales data.) (Click the icon to view additional data.) Units October actual sales (prior year) 87,000 November actual sales (prior year) 89,000 December actual sales (prior year) 73,000 January projected sales 76,000 February projected sales 88,000 March projected sales 92,000 April projected sales 101.000 Credit Purchases payment Totalcash collections Direct Materials Purchases Budget January February March Units to be quarter Cash Payments for Direct Materials Budget January February March quarter 30% of current month DM purchases 70% of Last month's DM Totalash collections In any given month, 30% of the total sales are cash sales, while the remainder are credit sales multiply by qty - board feet-of DM needed per unit Total qty-board feet needed plus desired ending inventory of DM Total aty less beginning inventory of DM qty-board feet-to purchase multiply by cost per board foot Total Cost of DM purchases The company's collection story indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected. Assume that the total cost of direct materials purchases in December was 5560.000. The company pays 30% of its direct materials purchases in the month of purchase, and pays the remaining 70% in the month after purchase
