1. Frame-It Company produces and sells picture frames. To guard against out of stock situations, the...

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1. Frame-It Company produces and sells picture frames. To guard against out of stock situations, the company requires that 20% of the next month's sales be on hand at the end of each month. Budgeted sales of picture frames over the next three months are: 2. 3. 4. Budgeted sales in units Production in units Compute budgeted production for February. Santiago Company has budgeted production for next year as follows: January 130,000 Total sales First Quarter 80,000 October $280,000 February 180,000 Second Quarter 96,000 Five pounds of raw materials are required for each unit produced. Required raw materials inventory at the end of each quarter is 10% of the next quarter's production needs. Compute budgeted purchases of raw materials for the third quarter. November $240,000 March 240,000 Third Quarter 128,000 Daley Company plans to sell 86,000 units during the month of August. If the company has 18,000 units on hand at the start of the month, and plans to have 16,000 units on hand at the end of the month, how many units must be produced during the month? Café Company's sales budget for the fourth quarter is as follows: Fourth Quarter 112,000 December $320,000 Management expects that 30% of the sales are for cash; the rest are on credit. Of the credit sales, 60% are collected in the month of sale, 25% percent in the month following sale, and 10% percent in the second month following sale. The remaining 5% is uncollectible. Prepare a schedule of expected cash collections for December. 1. Frame-It Company produces and sells picture frames. To guard against out of stock situations, the company requires that 20% of the next month's sales be on hand at the end of each month. Budgeted sales of picture frames over the next three months are: 2. 3. 4. Budgeted sales in units Production in units Compute budgeted production for February. Santiago Company has budgeted production for next year as follows: January 130,000 Total sales First Quarter 80,000 October $280,000 February 180,000 Second Quarter 96,000 Five pounds of raw materials are required for each unit produced. Required raw materials inventory at the end of each quarter is 10% of the next quarter's production needs. Compute budgeted purchases of raw materials for the third quarter. November $240,000 March 240,000 Third Quarter 128,000 Daley Company plans to sell 86,000 units during the month of August. If the company has 18,000 units on hand at the start of the month, and plans to have 16,000 units on hand at the end of the month, how many units must be produced during the month? Café Company's sales budget for the fourth quarter is as follows: Fourth Quarter 112,000 December $320,000 Management expects that 30% of the sales are for cash; the rest are on credit. Of the credit sales, 60% are collected in the month of sale, 25% percent in the month following sale, and 10% percent in the second month following sale. The remaining 5% is uncollectible. Prepare a schedule of expected cash collections for December.

Answer rating: 100% (QA)

1 To compute the budgeted production for February we first need to calculate the desired ending inventory for February This is done by multiplying the ... View the full answer