Question
The Bear Corporation will begin business operations on January 1, 2015. Below is the anticipated SALES BUDGET (in units): Jan. 30,000 Feb. 30,000 Mar. 60,000
The Bear Corporation will begin business operations on January 1, 2015. Below is the anticipated SALES BUDGET (in units):
Jan. 30,000
Feb. 30,000
Mar. 60,000
Apr. 20,000
ADDITIONAL INFORMATION
a. Ending finished goods inventory should be equal to 10% of next month's sales projection.
b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound.
c: Labor cost is $10 per unit produced.
d. Ending raw material inventory should be equal to 20% of next month's material requirement.
e. Factory overhead is $18,000 per month of which $8,000 is for depreciation.
f. All costs are paid in the month incurred except for purchases which is paid in the following month.
g. The selling price per unit is $100.
REQUIRED: Using Excel, in good form:
Prepare a SALES BUDGET for the first quarter (January through March). Prepare a PRODUCTION BUDGET for the first quarter (January through March).
Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.)
Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).
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