1. M Company has 6,000 units of finished goods inventory as of December 31. Sales for...

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1. M Company has 6,000 units of finished goods inventory as of December 31. Sales for the first four months of next year are projected as follows: January, 30,000 units; February, 40,000 units; March, 60,000 units; April, 50,000 units. The firm wants ending inventory each month to equal 20 percent of sales for next month. Prepare a schedule of required production for each month and for the quarter. 2. See # 1. Assume each unit sells for $4.50 Prepare a sales budget. 3. Assume X Company will make 3500, 4200, and 5700 units in January, February, and march respectively. Each items takes 2.5 hours to make. Workers, on average, make $12 per hour. Prepare a labor budget. 4. R Company has projected sales for next year as follows: first quarter, $250,000; second quarter, $400,000; third quarter $350,000; fourth quarter, $500,000. Beginning accounts receivable totals $120,000. Sixty percent of all sales are credit sales and are collected in the quarter following the quarter in which the sales are made. Bad debts are negligible. Prepare a schedule showing expected cash receipts for each quarter and for the year. 5. M Company anticipates purchases for the next quarter as follows: January, $30,000; February, $50,000; March, $60,000. Purchases in December totaled $20,000. Thirty percent of the amount purchased is paid for in the month of purchase and 70 percent in the month following purchase. Prepare a schedule of payments for purchases for each month and for the next quarter. 6. J Company produces a product that takes 3 ounces of material per unit. The material cost of $.25 per ounce. The company's inventory policy requires that sufficient materials be in ending monthly inventory to satisfy 30 percent of the following month's production needs. Inventory at the beginning of October equals exactly the amount needed to satisfy the inventory policy. J Company has projected production of 40,000 units in October; 80,000 units in November; 50,000 units in December, and 60,000 units in January of next year. Prepare a direct materials purchases budget for materials for the last quarter of the current year showing purchases in units and in dollars for each month and for the quarter in total. 1. M Company has 6,000 units of finished goods inventory as of December 31. Sales for the first four months of next year are projected as follows: January, 30,000 units; February, 40,000 units; March, 60,000 units; April, 50,000 units. The firm wants ending inventory each month to equal 20 percent of sales for next month. Prepare a schedule of required production for each month and for the quarter. 2. See # 1. Assume each unit sells for $4.50 Prepare a sales budget. 3. Assume X Company will make 3500, 4200, and 5700 units in January, February, and march respectively. Each items takes 2.5 hours to make. Workers, on average, make $12 per hour. Prepare a labor budget. 4. R Company has projected sales for next year as follows: first quarter, $250,000; second quarter, $400,000; third quarter $350,000; fourth quarter, $500,000. Beginning accounts receivable totals $120,000. Sixty percent of all sales are credit sales and are collected in the quarter following the quarter in which the sales are made. Bad debts are negligible. Prepare a schedule showing expected cash receipts for each quarter and for the year. 5. M Company anticipates purchases for the next quarter as follows: January, $30,000; February, $50,000; March, $60,000. Purchases in December totaled $20,000. Thirty percent of the amount purchased is paid for in the month of purchase and 70 percent in the month following purchase. Prepare a schedule of payments for purchases for each month and for the next quarter. 6. J Company produces a product that takes 3 ounces of material per unit. The material cost of $.25 per ounce. The company's inventory policy requires that sufficient materials be in ending monthly inventory to satisfy 30 percent of the following month's production needs. Inventory at the beginning of October equals exactly the amount needed to satisfy the inventory policy. J Company has projected production of 40,000 units in October; 80,000 units in November; 50,000 units in December, and 60,000 units in January of next year. Prepare a direct materials purchases budget for materials for the last quarter of the current year showing purchases in units and in dollars for each month and for the quarter in total.

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