Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August September 32,000 October 74,000 22,000 November 8,500 43,000 December 9,000 The selling price of the beach umbrellas is $13 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5 uncollectible Sales for June totaled $299,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 76,600 feet September 30 ? feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $50,120, Required: < Prev 11 of 11 Next > Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 and 5 Req 6 Calculate the estimated sales, by month and in total, for the third quarter. Budgeted sales July August September Quarter Req 1 Req 2 > Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August September 32,000 October 74,000 22,000 November 8,500 43,000 December 9,000 The selling price of the beach umbrellas is $13 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5 uncollectible Sales for June totaled $299,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 76,600 feet September 30 ? feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $50,120, Required: < Prev 11 of 11 Next > Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 and 5 Req 6 Calculate the estimated sales, by month and in total, for the third quarter. Budgeted sales July August September Quarter Req 1 Req 2 >
Expert Answer:
Answer rating: 100% (QA)
1 Calculate the estimated sales by month and in total for the third quarter July 32000 units x 13 41... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
A classified balance sheet (LO5 C5): Pregunta 34Respuesta a. Provides detailed information on the company's revenue streams b. Separates assets and liabilities into current and long-term categories...
-
Read the following link and support the questions with evidence from the provided text Assume service scores for the area you manage, Harrah's Metropolis hotel housekeeping, have declined over the...
-
QUESTION 9 The Bending moment diagram corresponding to the loading shown in Figure Q9 is: X 20 KN 10 kN/m 30 KN (m) 0 1. 4. 6. 8. 10. 0.00 a) 0.00 -20.00 -20.00 -50.00 -50.00 -90.00 (m) c) 80.00 0.00...
-
Head movement evaluations are important because disabled individuals may be able to operate communications aids using head motion. The paper Constancy of Head Turning Recorded in Healthy Young Humans...
-
A medical researcher believes that women typically have lower serum cholesterol than men. To test this hypothesis, he took a sample of 476 men between the ages of nineteen and forty-four and found...
-
What are the contingency variables in path-goal theory?
-
Earlville Corporation reported net sales of \($300,000\), \($330,000\), and \($360,000\) in the years 2000, 2001, and 2002, respectively. If 2000 is the base year, what is the trend percentage for...
-
Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the...
-
eve dy= given below. Check your answer by differentiation. +C
-
On September 1, 2020, Pine Company borrows cash by issuing a one-year noninterest-bearing note payable to National Bank in the amount of $61,480. The market rate of the note is 6%. The company...
-
On 3/1/18 Comprehensive Corp. issues $100,000, 8-year bonds (dated 3/1/18) with a stated rate of 3% payable semiannually every 9/1 and 3/1. The proceeds of the bonds are $93,211. Comprehensive Corp....
-
6) Use exponential smoothing with trend adjustment to forecast deliveries for period 10. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200. Actual...
-
4) ABC Corporation makes electrical watches. The lifetime (period during which a watch does not need major repair) of an electronic watch manufactured by this corporation has a normal distribution...
-
Russel Industries has just completed construction of an oil drilling facility at a cost of $10 million. The facility has a useful life of 10 years, is expected to have a $1 million residual value,...
-
write java programme Algorithm: Array Average (Array, n) Purpose: Find the average value Pre: Given the array Array and the number of elements, n Post: None Return: The average value { } } sum -0.0...
-
Under Colorado law as interpreted In re Marriage of Olar , does a spouse have a marital property interest in the other spouse's attainment of a professional degree? A. No, since a professional degree...
-
Which provision could best be justified as encouraging small business? a. Ordinary loss allowed on $ 1244 stuck. b. Percentage depletion. c. Domestic production activates deductions. d. Interest...
-
If you had the financial capacity to be a significant philanthropist, would you focus your giving on reducing world poverty or on addressing social problems in your own country? Explain your answer.
-
One year ago the exchange rate between Polish zloty and the U.S. dollar was \(\mathrm{Z} 3.8000 / \mathrm{S}\). Since then the zloty has fallen \(14 \%\) against the dollar. Price levels in the...
-
On January 12, 2010, a 7.0 earthquake struck Haiti, leveling thousands of homes, cutting off electricity and telephone service, killing thousands, and leaving thousands more homeless and destitute in...
Study smarter with the SolutionInn App