Sales, production, purchases, and cash budgetsFreese, Inc., is in the process of preparing the fourth quarter budget for 2013, and the following data have been assembled:

Problem 14.23LO 4, 5, 8

Chapter 14Cost Planning

587

March . . . . . . April . . . . . . . May . . . . . . .

6,000 units

7,000 units 10,000 units

June . . . . . . . . . . . July. . . . . . . . . . . . August . . . . . . . . .

8,000 units 9,000 units 6,000 units

The company sells a single product at a price of $60 per unit. The estimated sales volume for the next six months is as follows:

e cel

Problem 14.24LO 4, 5, 8

x

588

Part 2

Managerial Accounting

September October . . November December January . . February. .

. ..................................

. ..................................

. ..................................

. ..................................

. ..................................

. ..................................

13,000 units 12,000 units 14,000 units 20,000 units

9,000 units 10,000 units

accounting

Case 14.25LO 10

Required:

1. Prepare sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2013.
2. Prepare schedule of cash collections from sales, by month and in total, for the fourth quarter of 2013.
3. Prepare production budget in units, by month and in total, for the fourth quarter of 2013.
4. Prepare materials purchases budget in pounds, by month and in total, for the fourth quarter of 2013.
5. Prepare schedule of cash payments for materials, by month and in total, for the fourth quarter of 2013.