VitaPup produces a vitamin-enhanced dog food. The company expects sales to be 12,600 bags in January, 14,500 bags in February, 19,000 bags in March, and 21,500 bags in April. There are 1,260 bags on hand at the start of January. VitaPup desires to maintain monthly ending inventory equal to 10 percent of next month's expected sales.

Required:

Prepare the production budget for VitaPup for the months of January, February, and March

1. In the VitaPup question in the previous slide, what would have been the planned production in March if planned sales in April were 18,000 units instead of 21,500 (all other numbers stay the same):

A.18,900

B.18,000

C.19,000

D.19,100

Roehler Industrial has estimated that production for the next ve quarters will be:

1st quarter of current year 46,000 units

2nd quarter of current year 42,000 units

3rd quarter of current year 50,000 units

4th quarter of current year 39,000 units

1st quarter of next year 48,000 units

Finished units of production require 5 pounds of raw material per unit. The raw material cost is $4 per pound. The raw materials inventory at the beginning of the rst quarter of the current year was $150,000. Roehler desires to have 15 percent of next quarters material requirements on hand at the end of each quarter.

Required

Prepare quarterly direct materials purchases budgets for Roehler Industrial for the current year.

2. In the Roehler example in the previous slide, what would have been the planned material purchases for Q4 of the current year if planned production in Q1 of next year was 44,000 units instead of 48,000 units (all other numbers are the same):

A.$808,000

B.$900,000

C.$795,000

D.$780,000

3. In the Mississippi Retailers example in the previous slide, what would have been the budgeted collection in June if June credit sales are expected to be $100,000 instead of $108,000 (all other numbers are the same):

A.$50,000

B.$92,500

C.$75,500

D.$90,500

4. Which of the following budgets has to be prepared before the cash budget but after the production budget?

A.The budgeted income statement

B.The sales budget

C.The direct labor budget

D.The budgeted balance sheet.

Please answer all questions above and show work where needed. Thank you.

Budgeted Sales and Cash Receipts Mississippi Retailers expects credit sales in the next quarter as follows: April $75,000 May 85,000 June 108,000 Prior experience has shown that 50 percent of a month's sales are collected in the month of sale, 30 percent in the month following sale, and the remaining 20 percent in the second month following