Attempts: 0 of 2 used Submit Answer J (b) Prepare Waterway Corp's production budget and DM...

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Attempts: 0 of 2 used Submit Answer J (b) Prepare Waterway Corp's production budget and DM purchases budget for the second quarter. (Round DM cost per pound and total budgeted cost of DM purchases to 2 decimal places, e.g. 15.25.) Production Budget April May > K > > > DM Purchases Budget > > April May > $ S 2 Question 7 of 13 /4 Prepare Waterway Corp's production budget and DM purchases budget for the second quarter. (Round DM cost per pound and total budgeted cost of DM purchases to 2 decimal places, e.g. 15.25.) $ S April May June Quarter April May June Quarter I eTextbook and Media Save for Later S S $ Attempts: 0 of 2 used Submit Answer Question 7 of 13 View Policies -/4 E : 4= Current Attempt in Progress The accounting team at Waterway Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production-related cash expenditure, direct materials. The team has gathered the following information: 1. The budgeted selling price for the year is $3.80 per unit. Sales volumes are budgeted as follows for the last month of quarter 1, for all of quarter 2, and for part of quarter 3. March April May June July August 25.000 22.200 23.000 25.600 23.400 28.300 A 2 3. 4. Historically. 25% of Waterway's sales are cash sales. Of the remaining credit sales. 40% are collected in the month of sale. while 56% are collected the following month. The remainder is deemed uncollectible. Management sets its ending FG Inventory goal at 10% of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. The target ending inventory for Waterway's primary direct material is 20% of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires 4 pounds of DM at an expected cost of $0.40 per pound. 5. Waterway pays for 35% of its purchases in the month of purchase and 65% the month after purchase. Total budgeted purchases in March are $17.000. For all quarterly budgets, report monthly amounts as well as the total for the quarter. (a) Prepare the sales forecast and corresponding cash receipts budget for Waterway Corp. for its second quarter. (Round budgeted selling price per unit to 2 decimal places, e.g. 15.25.) Sales Budget $ April May June Attempts: 0 of 2 used Submit Answer J (b) Prepare Waterway Corp's production budget and DM purchases budget for the second quarter. (Round DM cost per pound and total budgeted cost of DM purchases to 2 decimal places, e.g. 15.25.) Production Budget April May > K > > > DM Purchases Budget > > April May > $ S 2 Question 7 of 13 /4 Prepare Waterway Corp's production budget and DM purchases budget for the second quarter. (Round DM cost per pound and total budgeted cost of DM purchases to 2 decimal places, e.g. 15.25.) $ S April May June Quarter April May June Quarter I eTextbook and Media Save for Later S S $ Attempts: 0 of 2 used Submit Answer Question 7 of 13 View Policies -/4 E : 4= Current Attempt in Progress The accounting team at Waterway Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production-related cash expenditure, direct materials. The team has gathered the following information: 1. The budgeted selling price for the year is $3.80 per unit. Sales volumes are budgeted as follows for the last month of quarter 1, for all of quarter 2, and for part of quarter 3. March April May June July August 25.000 22.200 23.000 25.600 23.400 28.300 A 2 3. 4. Historically. 25% of Waterway's sales are cash sales. Of the remaining credit sales. 40% are collected in the month of sale. while 56% are collected the following month. The remainder is deemed uncollectible. Management sets its ending FG Inventory goal at 10% of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. The target ending inventory for Waterway's primary direct material is 20% of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires 4 pounds of DM at an expected cost of $0.40 per pound. 5. Waterway pays for 35% of its purchases in the month of purchase and 65% the month after purchase. Total budgeted purchases in March are $17.000. For all quarterly budgets, report monthly amounts as well as the total for the quarter. (a) Prepare the sales forecast and corresponding cash receipts budget for Waterway Corp. for its second quarter. (Round budgeted selling price per unit to 2 decimal places, e.g. 15.25.) Sales Budget $ April May June

Answer rating: 100% (QA)

Sales forecast March Cash Sales 25000 units 25 6250 units Credit Sales 25000 units 75 18750 units Total Sales Revenue 380 25000 units 95000 April Cash Sales 22200 units 25 5550 units Credit Sales 2220... View the full answer