Royal Manufacturing Company - 2nd Quarter Budget Data 3rd Quarter April 20,000 2nd Quarter May June 50,000 30,000 way July 25,000 August ***** ... ...... Budgeted unit sales ...... 15,000 Selling price per unit Accounts receivable, beginning balance (3/31) Sales collected in themonth sales are made Sales collected in the month after sales are made Sales uncollectible $10 $30,000 Collect in full in April 70% 25% 5% Enter a formula (wherever possible) into each of the cells marked with a ? below ..... Sales budget ***... 2nd Quarter May June April Quarter BERIB ? Budgeted unit sales Selling price per unit Total sales ? ? ? ................................... ? ? ? Wrong Schedule of expected cash collections April 2nd Quarter May June .......... Quarter ? ? ? ? Accounts receivable 3/31 ........................................... April Sales April sales collected in April April sales collected in May ............................................... May Sales May sales collected in May May sales collected in June June Sales June sales collected in June Total cash collections ? 2 ? Page 1 ? ? ? ? Wrong ? ? Royal Manufacturing Company - 2nd Quarter Budget Data April 20,000 2nd Quarter May June 50,000 30,000 July 25,000 3rd Quarter August 15,000 Budgeted unit sales Selling price per unit - Accounts receivable, beginning balance (3/31). Sales collected in themonth sales are made Sales collected in the month after sales are made Sales uncollectible Desired ending finished goods inventory is Finished goods inventory, 3/31 Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, 3/31 Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, 3/31 $10 $30,000 Collect in full in April 70% 25% 5% 20% the following month's budgeted sales in units 4,000 units 5 pounds 10% of the following month's production needs 13,000 pounds $0.40 per pound 50% in the month the purchases are made 50% in the month following purchase $12,000 Enter a formula (wherever possible) into each of the cells marked with a ? below Production budget April July August ? Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning finished goods inventory Required production in units ? ? 2 ? ? 2nd Quarter May June ? ? ? ? ? Quarter ? ? ? ? ? 2 ? ? ? Wrong ? ? ? Direct materials budget and DM purchase budget April June July ? ? ? Required production (units) Raw materials required to produce one unit (pounds) Production needs (pounds) Add desired ending inventory of raw materials (pounds). Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased (pounds) Cost of raw materials per pound Cost of raw materials to be purchased ? ? ? 2 ? ? ? 7 ? ? ? ? ? ? 2nd Quarter May ? 2 ? ? 2 ? ? ? ? ? Quarter ? ? 2 ? ? 2 ? ? ? ? ? ? ? ? ? ? ? ? ? Wrong Schedule of expected cash disbursements for materials 2nd Quarter May June April Quarter ? ? ? ? ? ? Accounts payable, 3/31 April purchases April purchases paid in April April purchases paid in May May purchases May purchases paid in May May purchases paid in June June purchases June purchases paid in June Total cash disbursements ? ? ? ? ? Page 2 cle. ? ? ? ? ? Wrong ? Royal Manufacturing Company - 2nd Quarter Budget Data April 20,000 2nd Quarter May June 50,000 30,000 July 25,000 3rd Quarter August 15,000 Budgeted unit sales Sales uncollectible Desired Selling price per unit Accounts receivable, beginning balance (3/31). Sales collected in themonth sales are made Sales collected in the month after sales are made ... ending finished goods inventory is Finished goods inventory, 3/31 Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, 3/31 Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, 3/31 * Each unit of production required of direct labor - Direct labor hourly wage rate - Direct labor workforce minimum hours to be paid $10 $30,000 Collect in full in April 70% 25% 5% 20% the following month's budgeted sales in units 4,000 units 5 pounds 10% of the following month's production needs 13,000 pounds $0.40 per pound 50% in the month the purchases are made 50% in the month following purchase $12,000 0.05 hours or 3 minutes $10 per hour 1,500 hours per month for next three months Enter a formula (wherever possible) into each of the cells marked with a ? below Direct labor budget April Units of production Direct labor per unit Labor hours required Guaranteed labor hours Labor hours paid Hourly wage rate Total direct labor costs ? ? ? ? ? 2nd Quarter May June Quarter 2 2 ? 2 2 ? 2 2 ? ? 2 ? ? ?