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you have to solve it in accordance to kilograms not pounds Crydon Inc. manufactures an advanced swim fin for scuba divers. Management is now prepar-

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you have to solve it in accordance to kilograms not pounds

Crydon Inc. manufactures an advanced swim fin for scuba divers. Management is now prepar- ing detailed budgets for the third quarter. July through September, and has assembled the following information to assist in preparing the budget: The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins): July August September October November. December 6.000 7000 5,000 4.000 3,000 3.000 The selling price of the swim fins is $50 per pair. b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 40% in the month of sale 50% in the month following sale 10% uncollectible July 1 c. The beginning accounts receivable balance (excluding uncollectible amounts) will be $130,000, The company maintains finished goods inventories equal to 10% of the following month's sales. The inventory of finished goods on July 1 will be 600 pairs. Each pair of swim fins requires 2 pounds of grelco compound. To prevent shortages, the on hand at the end of each month d. company would like the imantan faral b. The selling price of the swim fins is $50 per pair. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: C. d 40% in the month of sale 50% in the month following sale 10% uncollectible The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $130,000. The company maintains finished goods inventories equal to 10% of the following month's sales. The inventory of finished goods on July 1 will be 600 pairs. Each pair of swim fins requires 2 pounds of grelco compound. To prevent shortages, the company would like the inventory of grelco compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of grelco compound on hand on July 1 will be 2.440 kilograms. Grelco compound costs $2.50 per kilogram. Crydon pays for 60% of its purchases in the month of purchase: the remainder is paid for in the following month. The accounts pay- able balance for grelco compound purchases will be $11.400 on July 1. Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both pairs of swim fins and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. 2. Prepare a production budget for each of the months July through October. 3. Prepare a direct materials budget for grelco compound, by month and in total. for the third quarter. Also prepare a schedule of expected cash disbursements for grelco com- e

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