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What is the Sales and Production budget. I have solved these, but want to double check. March 31, 2022 ASSETS Cash. $40,000 Accounts receivable. 342,248
What is the Sales and Production budget. I have solved these, but want to double check.
March 31, 2022 ASSETS Cash. $40,000 Accounts receivable. 342,248 Raw materials inventory. Finished goods inventory. 325,540 Total current assets. 806,288 Equipment. $600,000 Less accumulated depreciation. 150,000 450,000 Total assets. $$1,256,288 LIABILITIES AND EQUITY Accounts payable. $200,500 Short-term notes payable. 12,000 Taxes payable. 0 Total current liabilities. 212.500 Long-term note payable. Common stock. $335,000 500,000 Retained earnings. 208,788 Total stockholders' equity. 543,788 Total liabilities and equity. $1,256,288 To prepare a master budget for April, May, and June of 2022, management gathers the following information: - Sales for March total 20,500 units. Forecasted sales in units are as follows: April, 20,500; May, 19,500 ; June, 20,000 ; and July, 20,500 . Sales of 240,000 units are forecasted for the entire year. The product's selling price is $23.85 per unit and its total product cost is $19.85 per unit - Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,925 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,000 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. - Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 16,400 units, which complies with the policyStep by Step Solution
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