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the company adm2341 is preparing its master budget for the months of january, february and march of 2018. the master budget will be based on
the company adm2341 is preparing its master budget for the months of january, february and march of 2018. the master budget will be based on the following infomation.I understand its a somehow complex question. But can you please provide the process of solving the question. For example, which one of the information you are using to solve each specific question as well as formulars if possible. I really appreiciate your work!Thank you!
QUESTION 5-(18 points) The company Adm 2341Inc. is preparing its master budget for the months of January February and March of 2018. The master budget will be based on the following information: 1. Selling price is $80 per unit in 2017 and will not change in 2018. Actual and estimated sales units are as follows: Actual 2017 Estimated 2018 November: 10.000 December: 12,000 January: 16,500 February: 15,000 March: 15,600 April: 16,500 2. Sales are 50% for cash and 50% on credit. The company collects 50% of the credit sales during the first month following the month of sale and 50% during the second month. This policy was in place since last year. 3. The company desires an ending inventory of finished goods equal to 25% of next month's estimated sales. Finished Goods inventory at the end of 2017 consisted of 4,125 units. 4. Each unit of product requires 4 kilograms of raw material at $2.00 per kilogram. There were 16,125 kilograms of raw materials in inventory at the end of 2017. 101Step by Step Solution
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