The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ | The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted salles. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ | The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ | The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ | The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted salles. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ | The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. Budgeted number of mantels to be sold . January 410 . February 410 March 430 April 440 May In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. 470 Budgeted selling price is $500 per mantel. Each mantel measures 3 inches x 12 inches x 4 feet. Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 41 units. Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. MOH resources include variable costs budgeted to be $10/board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $50/unit sold. while budgeted fixed monthly SG&A costs are $58,000, which includes $7.500 of depreciation. All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. Beginning finished goods inventory was held at a cost of $270/unit from the prior year. (a1) Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. $ $ $ $ January January $ $ $ $ February February $ $ $ 69 $ March March 60 $ $ $ $ Quarte Quarte (a2). Prepare the production budget for Windsor Corp. < January February (a3). Prepare the DM purchases budget for Windsor Corp. Fabric $ $ January $ $ February $ $ |
Expert Answer:
Answer rating: 100% (QA)
Solution A1 Sales Forecast and Cash Receipts Schedule For January Sales Forecast 410 mantels 500 mantel 205000 Cash Receipts 25 of January sales 70 co... View the full answer
Related Book For
Basic Marketing Research
ISBN: 978-1133188544
8th edition
Authors: Tom J. Brown, Tracy A. Suter, Gilbert A. Churchill
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: Minimum total cost? Demand 550 700 750 Capacity 500 500 500 Regular Overtime 50 50...
-
What are some advantages and disadvantages of a sales incentive program in which the top performers receive a trip or other large reward, while other sales individuals receive lesser or different...
-
Below are financial statements for Eastnorth Manufacturing. After computing the ratios we discussed in this chapter, discuss strong and weak points of Eastnorths performance. December 31 2017 2016...
-
In the PCB described in Problem 9.63, it is desired to reduce the displacement transmissibility to a value of 0.25. If the chassis mass is 50 percent of the mass of the PCB, determine the necessary...
-
Presented below is information related to Aaron Rodgers Corporation for the current year. Instructions Compute the ending inventory , assuming that (a) Gross profit is 45% of sales; (b) Gross profit...
-
Fastball (FB), a teenager who became a superhero after catching a radioactive baseball, can fly, and she can throw any object as fast as a jet aircraft with no air resistance at all. Right now FB is...
-
Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016: Sales .......................... 2,500 units Sales price ................... $40 per unit Variable costs...
-
The basic data and operating requirements are provided below. List any assumptions that you are making for additional data or operating conditions than the specified values. Robot Configuration...
-
Performing services on account will have the following effects on the components of the basic accounting equation: a. increase assets and decrease equity. b. increase assets and increase equity. c....
-
As of December 31, 2025, Stoneland AG has assets of 3,500 and equity of 2,000. What are the liabilities for Stoneland AG as of December 31, 2025? a. 1,500. b. 1,000. c. 2,500. d. 2,000.
-
The expanded accounting equation is: a. Assets + Liabilities = Share Capital + Retained Earnings + Dividends + Revenues + Expenses. b. Assets = Liabilities + Share Capital + Retained Earnings +...
-
In a worksheet, net income is entered in the following columns: a. income statement (Dr) and statement of financial position (Dr). b. income statement (Cr) and statement of financial position (Dr)....
-
In a classified statement of financial position, assets and liabilities are usually shown in the following order: a. current assets, current liabilities, non-current liabilities, and non-current...
-
Belton, Inc. is the purchase of equipment with the following characteristics: Initial cash investment $1,750,000 Working capital requirement $100,000 * Annual projected cash inflows $4475,000 Special...
-
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
-
You are a staff researcher for a manufacturer of a well-known laundry detergent. As more and more competing products enter the market, managers at the company have decided that it would be a good...
-
Compute the 95 percent confidence interval for the percentage of respondents who had traveled more than 250 miles to visit the theme park using the information in the previous question.
-
Your company is in the process of installing its first "big data" system. Discuss how you would ensure that the traditional challenges of integration-access to and retrieval of data, lack of...
-
What are the elements of a master budget?
-
How would the budget-setting philosophy of a service provider differ from that of a manufacturing business?
-
What are the advantages and disadvantages of a bottom-up approach to budgeting?
Study smarter with the SolutionInn App