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please I need solution The data below pertains to the third quarter of Nevan Company which manufactures toy games. Below is the estimated sales (in
please I need solution
The data below pertains to the third quarter of Nevan Company which manufactures toy games. Below is the estimated sales (in units): a. The selling price of the toy game is $11 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: c. Sales for June totaled $400,000. d. The company maintains finished goods inventories equal to 25% of the following month's sales. This requirement will be met at the end of June. e. Each toy game requires 3 pounds of raw materials. f. The company requires that the ending inventory of raw materials be equal to 10% of the following month's production needs. g. The raw material costs $1.60 per pound. h. 40% of a month's purchases of raw materials is paid for in the month of IIII the purchase; the remainder is paid for in the following month. i. The Accounts Payable on June 30 will be $85,000. quired: Prepare: 1. Prepare a sales budget, by month and in total, for the Third quarter. (3 marks) 2. Prepare a schedule of expected cash collections, by month and in total, for the Third quarter. (15 marks) 3. Prepare a production budget for each of the months July, August, September and October. (10 marks) 4. Prepare a direct materials budget, by month and in total, for the Third quarter. (12 marks) 5. Prepare a schedule of expected cash disbursements, by month and in total, for the Third quarter. (15 marks)Step by Step Solution
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