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the Sweet Crunch Company produces and sells organic Sweet Potato Chips. The one-pound family size bag of chips has two direct materials - Organic Sweet
the Sweet Crunch Company produces and sells organic Sweet Potato Chips. The one-pound family size bag of chips has two direct materials - Organic Sweet Potatoes and packaging. The production process includes slicing the potatoes, lightly frying them, and lightly seasoning them with salt. Indirect materials include small amount of oil used to fry the chips and salt. Sweet Crunch is preparing budgets for the third quarter ending September 30, 2024. For each of the requirements (1-8) below, prepare monthly budgets for July, August, and September, along with a total budget for the quarter. 1. The previous year's sales (2023) for the corresponding period were: July 50,000 bags August 60,000 bags September 75,000 bags October 65,000 bags November 55,000 bags The company expects the above volume of sales to increase by 9% for the period July 2024 - November 2024. The budgeted selling price for 2024 is $9.00 per bag of chips. The company expects 40% of its sales to be cash (COD) sales. The remaining 60% of sales will be made on credit. Prepare a Sales Budget for Sweet Crunch Company. 2. The company desires to have finished goods inventory on hand at the end of each month equal
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