requirement 3

Bird Warehouse makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $14 per birdfeeder. Each birdfeeder requires 3.0 board feet of wood, which the company obtains at a cost of $3 per board foot. The company would like to maintain an ending stock of wood equal to 15% of the next month's production requirements The company would also like to maintain an ending stock of finished birdfeeders equal to 20% of the next month's sales. Sales data for the company is as follows m ick the icon to view the sales data) (Click the icon to view additional data) Read the requirements Requirement 1. Prepare the sales budget for the first three months of the year, as well as a summary budget for the quarter, including a separate section that details the type of sales made (cash versus credit.) Bird Warehouse Sales Budget For the Quarter Ended March 31 Month January February Unit Sales Multiply by: Sales price per unit Total sales revenue March Cash sales Credit sales Total sales revenue Enter any number in the edit fields and then continue to the next question Units In any given month, 30% of the total sales are cash sales, while the remainder are credit sales. October actual sales (prior year)...... November actual sales (prior year) December actual sales (prior year) ..... January projected sales ................ February projected sales ......... March projected sales... April projected sales..... 90,000 83,000 75,000 78,000 91,000 94,000 103,000 The company's collection history indicates that 70% of credit sales is collected in the month after the sale, 20% is collected two months after the sale, 6% is collected three months after the sale, and the remaining 4% is never collected. Assume that the total cost of direct materials purchases in December was $530,000. The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in the month after purchase. Print Done Print Done Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. Bird Warehouse Production Budget For the Quarter Ended March 31 Month January February March Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 135,000 board feet of wood for production in April (Round your answers to the nearest whole dollar) Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the company needs 135,000 board feet of wood for production in April. (Round your answers to the nearest whole dollar) Bird Warehouse Direct Materials Budget For the Quarter Ended March 31 January February March Quarter aring brary urces Units to be produced Multiply by: Quantity (board feet) of DM needed per unit Quantity (board feet) needed for production Plus Desired ending inventory of DM Total quantity (board feet) needed Less Beginning inventory of DM Quantity (board feet) to purchase Multiply by: Cost per board foot ay Modules ion Tools Total cost of DM purchases . the first du a n to the nearest Requirement 4. Prepare the cash collections budget for January February, and March, as well as a summary for the first quarter. (Round your answers to the nearest whole dollar) Review the sales budget prepared in Requirement 1. Bird Warehouse Cash Collections Budget For the Quarter Ended March 31 Month January February Cash sales in current month Collections on credit sales: 70% of credit sales made one month ago 20% of credit sales made two months ago 6% of credit sales made three months ago March Total cash collections Enter any number in the edit fields and then continue to the next question tequirement 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first uarter Review the direct materials budget prepared in Requirement 3 Bird Warehouse Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February 5% of current month DM purchases March 15% of last month's DM purchases btal cash payments iter any number in the edit fields and then continue to the next