Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me and write down how to calculate thank you Chrome 10 4) 100% 1 6:22 Catharine E Trent University: My Trent Master Budget
Please help me and write down how to calculate thank you
Chrome 10 4) 100% 1 6:22 Catharine E Trent University: My Trent Master Budget Assignment Cfi ezto.mhed ucation.com/hm.tpx Water Sport Inc. manufactures a small personal water tube used for children learning to swim. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist a. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes): July August September 7,300 October 5,800 November 4,800 December 3,700 3,300 2,800 The selling price of the water tubes is $60. b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 50% in the month of sale 45% in the month following sale 5% uncollectable The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $164,000. C. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1,460 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent shortages, the company would like the inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,200 kilograms 8Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started