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Part II. 1.South Park Company has budgeted production for next year as follows: First 60,000 Quarter Second Third 80,000 90,000 Fourth 70,000 Production in units
Part II. 1.South Park Company has budgeted production for next year as follows: First 60,000 Quarter Second Third 80,000 90,000 Fourth 70,000 Production in units ........... Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Calculate the budgeted purchases of material A for the second quarter (Direct Material Budget). 2. Pearl Jam Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product Win the ending inventory. Given this information, how much should Pearl Jam Company's production of Product W for the month of April be? 3. Budgeted sales in Allen Company over the next four months are given below: September $100,000 October $160,000 November $180,000 December $120,000 Budgeted sales Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, how much should the cash collections for December
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