Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterway Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales :

Waterway Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,100,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $44 per unit beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 10% higher than the budgeted sales for the first quarter of 2022. Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials: Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2023 are 520,000 kg.

(a1)

Prepare the sales budget by quarters for 2022.

WATERWAY COMPANY Sales Budget (in thousands) For the Year Ending December 31, 2022

Quarter

1

2

3

4

Year

Unit sales

enter a number for units enter a number for units enter a number for units enter a number for units enter a number for units

Unit price

$enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount

Total sales

$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount

(a2)

Prepare the production budget by quarters for 2022. (Round answers to 2 decimal places, e.g. 15.25)

WATERWAY COMPANY Production Budget (in thousands) For the Year Ending December 31, 2022

Quarter

Year

1

2

3

4

select an opening production budget item Finished goodsUnit salesTotal requiredBeginning inventoryEnding inventory

enter a number of units enter a number of units enter a number of units enter a number of units enter a number of units

select between addition and deduction AddLess: select a production budget item Total requiredBeginning inventoryEnding inventoryFinished goodsUnit sales

enter a number of units enter a number of units enter a number of units enter a number of units enter a number of units

select a summarizing line for the first part Finished goodsEnding inventoryUnit salesBeginning inventoryTotal required

enter a total number of units for the first part enter a total number of units for the first part enter a total number of units for the first part enter a total number of units for the first part enter a total number of units for the first part

select between addition and deduction AddLess: select a production budget item Finished goodsUnit salesBeginning inventoryEnding inventoryTotal required

enter a number of units enter a number of units enter a number of units enter a number of units enter a number of units

Total

enter a total number of units enter a total number of units enter a total number of units enter a total number of units enter a total number of units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy Analysis Of Financial Statements Analysis Of Financial Statements

Authors: M. Hanif, A. Mukherjee

1st Edition

1642879762, 9781642879766

More Books

Students also viewed these Accounting questions