Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pillows Ine. makes decorative throw pillows for home use. The company sells the pillows to hame decor retailers for $11 per pillow. Each pillow requires

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pillows Ine. makes decorative throw pillows for home use. The company sells the pillows to hame decor retailers for $11 per pillow. Each pillow requires 1.40 yards of fabric which the company obtains at a cost of 54 per yard. The company would like to maintain an ending stock of tabric equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finished pllows equal to 25% of the next month's sales. Sales (in units) are projected to be as follows for the first three months of the year: (1) (Click the icon to view the projected salos (in units) for the first three months of the year.) Read the requirements. Requirement 1. Prepare the sales budget, including a separate section that details the type of sales made. For this section, assume that 10\% of the company'a pillows are cash sales, and the remaining 90% are sold on credit terms. (Round your answers to the nearest whole number.) Pillows inc. makes docorative throw pillows for home use. The company sels the pillows to home decor retailers for $11 per pillow. Each pillow requires 1.40 yards of fabric. which the company obtains at a cost of $4 per yard. The company would like to maintain an ending stock of fabric equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to 25% of the next month's sales. Sales (in units) are projected to be as follows for the first three months of the year: (1) (Click the icon to view the projected sales (in units) for the first three months of the yoaf.) Read the requirements Requirement 2. Prepare the production budget. Assume that the company anticipates selling 180,000 units in April. (Round your answers to the fearest which 7 umber) Pillows inc. Production Budget For the Quarter Ended March 31 Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce More info

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

CPA Comprehensive Exam Review Auditing And Attestation

Authors: Nathan M. Bisk

43rd Edition

088128095X, 978-0881280951

More Books

Students also viewed these Accounting questions