Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve ASAP Crydon Inc. manufactures an advanced swim n for scuba divers. Management is now prepar- ing detailed budgets for the third quarter. July

please solve ASAP

image text in transcribed
Crydon Inc. manufactures an advanced swim n for scuba divers. Management is now prepar- ing detailed budgets for the third quarter. July through September. and has assembled the following information to assist in preparing the budget: a. The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins): Jlly ....................................................... sun Am .................................................... Hm mm ................................................ am October ................................................... dill] Narnia ................................................. 311]] Decanter ................................................ 3.0m The selling price of the swim ns is 550 per pair I: All sales are on account. Based on past experience. sales are expected to be collected in the following pattern: mhtemtdsde mammalian-signs mm The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $130,000. c. The company maintains nished goods inventories equal to 10% of the following month's sales. The inventory of nished goods on July 1 will be 600 pairs. d. Each pair of swim ns requires 2 pounds of grelco compound. To prevent shortages. the company would like the inventory of grelco compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of grelco compound on hand on July 1 will be 2.440 kilograms. e. Grelco compound costs $2.50 per kilogram. Crydon pays for 60% of its purchases in the month of purchase: the remainder is paid for in the following month. The accounts pay- able balance for grelco compound purchases will be $11,400 on July 1. Required: 1. Prepare a sales budget. by month and in total. for the third quarter. (Show your budget in both pairs of swim ns and dollars.) Also prepare a schedule of expected cash collections. by month and in total. for the third quarter. Prepare a production budget for each of the months July through October. Prepare a direct materials budget for grelco compound. by month and in total. for the third quarter. Also prepare a schedule of expected cash disbursements for grelco com- und. month and in totaL for the third er. 5"!\

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

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

10th edition

78025664, 978-0078025662

More Books

Students also viewed these Accounting questions

Question

A greater tendency to create winwin situations.

Answered: 1 week ago