The accounting team at Windsor Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the casheffects of the compary's sales as well ars its biggest production-related cash openditure, direct materials. The team has gathered the following information: 1. The budgeted selling price for the year is $2.70 per unit. Sales volumes are budgeted as follows for the last month of quarter 1 for all of quarter 2 , and for part of quarter 3 2. Historically, 25% of Windsor's sales are cash sales. Of the remaining credit sales, 40%6 are collected in the month of sale, whille 56% re collected the following month. The remainder is deerned uncollectible. 3. Manazement sets its endingFG Inventory goal at 100s of the following month's sales volume The accounting team expects this policy will be met at the beginning of the second quarter 4. The target ending inventory for Windsor's primary direct material is 200 of the following monthis production needs, since it's not unusual for suppliers to stock out of thils key resource. Each completed unit requires 4 pounds of DM at an expected cost. of $020 perpound 5. Windsor pays for 35% of its purchases in the month of purchase and 65% the month after purchase Total budseted purchases in March are $17,500. Prepare the sales forecast and corresponding cash receipts budget for Windsor Corp. for its second quarter, (Round budgeted seling price per unit to 2 decimal places, es 15.25. Prepare the sales forecast and corresponding cash receipts budget for Windsor Corp. for its second quarter, (Roand budated selling prion per unit to 2 dechond plockes es 15.251. (Round answers to 2 decland plocess eg. 15.25) Cash Collections April Mary June Budket. Beginning AVR (Apriil) Aprilcash sales Aprilcredit sates May cash sales Many credit sales June cash isales June credit sales Total cash receipts April May June Quarter $ $ $ Prepare Windsor Corp's production budget and DM purchases budget for the second quarter. (Rownd DM cost per pound ond fotal budgeted cost of DM purchases to 2 dosingl phaces, es. 15.25. Prepare Windsor Corp's production budget and DM purchases budget for the second quarter (Round DM cost per pormd ond fotof budected cost of DM purchats to 2 dromal plaoes, es. 15.25] April May June Quarter Prepare Windsor Corp's cash disbursements budget for the DM purchases for the second quarter, (fotand ambwes to 2 decimol plootsieg 15.25j Prepare Windsor Corp's cash disbursements budget for the DM purchases for the second quarter. fRound amwers to 2 decimof ploces ey. 15.25. DM cost per unit already known, how mwch of this total COGS per unit is avallable to cover DL and MOH cost? (Round ansuers to? decimal ploces eg. 15.25
