Question 1: (10) Hampton Freeze Co. is preparing a sales budget that is constructed by multiple budgeted
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Question 1: (10) Hampton Freeze Co. is preparing a sales budget that is constructed by multiple budgeted units contain quarterly for the year ended 2019. Notice that company plans to sell 100,000 cases of popsicles during the year with sales peaking in third quarter. At Hampton Freeze Co., all sales are on credit. Furthermore, company's experience has shown that ( 70 % ) of sales are collected in the quarter in which the sales are made and the remaining weightage are collected in the following quarter. Company sets selling price per case is ( $ 20 ). Let's assume, there will be 3,000 cases in the ending inventory of a company's warehouse at the end of the year 2019. Whereby, company found 2,000 cases available on quarter fourth of a previous year in its financial records. Managers are expecting the ending inventory in each quarter equals to ( 20 % ) of the following quarter's sales. Use the budgeted sales in cases as follows: Prepare Hampton Freeze Co. sales budget and production budget for the year ended December ( 31^{ ext {st }}, 2019 ). Also compute both budgets for a complete yoar budgeted amount. Why Quarter three sales are found to be highest among all?
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