ques 1 please help me with wrong parts of both questions...thanks

ques 2

Brighton, Inc. manufactures Kitchen tiles. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month bank loan of $500,000 starting May 1. The bank would charge interest at the rate of 100 percent per month and require the company to repay interest and principal on May 31 in considering the loan the bank requested a projected income statement and cash budget for May. The following information is available: The company budgeted sales at 600,000 units per month in April, June and July and at 500.000 units in May. The selling price is $4 per unit The inventory of finished goods on April 1 was 150,000 units. The finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process. The inventory of raw materials on April 1 was 57,500 pounds. At the end of each month, the raw materials inventory equals no less than 40 percent of production requirements for the following month. The company purchases materials in quantities of 67,500 pounds per shipment Selling expenses are 10 percent of gross sales. Administrative expenses, which include depreciation of $2,500 per month on office furniture and fixtures, total $165,000 per month The manufacturing budget for tiles, based on normal production of 500,000 units per month, follows: Materials (0.25 pound per tile, 125,000 pounds, $4 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $220,000) Total $ 580,000 390,000 200,000 380,000 $1,470,000 Required: monton hudents hy months for production in units for April, May, and June. Required: a 1. Prepare schedules computing inventory budgets by months for production in units for April, May, and June a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May, b. Prepare a projected income statement for May, Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 50 percent Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Roq Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May. Schedule Computing Raw Materials inventory Purchase Budget (Pounds) For April and May April May Inventory required at end of month 52,500 60.000 Budgeted Production needs in pounds 143.750 131.250 Total pound needs 195.250 191,250 Les Inventory on hand at beginning of month 57,500 50.000 Balance required to purchase 138,750 141.250 Budgeted purchases - Pounds 67.500 X 67.500 Reg A1 Roge> Reg A1 Reg AZ Reg B Prepare a projected Income statement for May. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent. (Do not round Intermediate calculations.) BRIGHTON, INC Projected Income Statement For the Month of May Sales revenue Cash discounts on sales S 20.000 Estimated bad debts 10,000 $ 2,000,000 OOO 30.000 $ 1,970,000 Net Sales Cost Sales Fixed Cos! Variable cost ls Olo 380,000 200,000 580.000 $ 1.390.000 > Gross profit on sales Expenses Selling expense Administrative expense Interest exponse Administrative expense Operating profit 000 $ 240,000 165,000 11.880 500 417,380 972,620 s