Greenway processing plant is preparing its budget for 2024. After the budget preparation team made a...
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Greenway processing plant is preparing its budget for 2024. After the budget preparation team made a thorough study and market assessment, they came out with the following data and information. (For this problem, round all production units to nearest whole number, round the dollar amount to two decimal). The plant sold 3050 units in the last quarter of previous year. The plant planned the units to be sold as follows: 1st quarter 20% decrease from the last quarter of previous year; 2nd quarter 10% decrease from 1st quarter, 3rd quarter 25% increase from the 2nd quarter; 4th quarter 20% increase from the 3rd quarter. The Selling price for one unit is planned to be $352.00. The term of payment for suppliers is n/20. 3/5 of sales will be collected in the same quarter and the remaining 2/5 of sales be collected in the following quarter. The Plant started the quarter with previous quarters receivables and assumed to be collected in the 1st quarter; will end the year with $463,795.20 (2/5 of the final quarter's expected sales). The company always plans to end each quarter with sufficient inventory to cover 20% of the following quarter's planned sales. First quarter of 2025 projected sales estimated to be 3500 units Each unit of product requires 15lb of raw materials. It maintains raw materials inventory as 25% of the following quarter's production needs. It also reveals that a planned end of year inventory of 15,700 lb. Cost per unit of raw materials is $2.45 per lb. The Company pays 70% of each quarter's purchases in the quarter of purchase and the remaining 30% is paid in the following period. In the 1st quarter, the plant will have $33,626 cash payment for previous quarters purchase. Based on the fact presented above, prepare: 1. Sales Budget 2. Direct materials purchase budget Greenway processing plant is preparing its budget for 2024. After the budget preparation team made a thorough study and market assessment, they came out with the following data and information. (For this problem, round all production units to nearest whole number, round the dollar amount to two decimal). The plant sold 3050 units in the last quarter of previous year. The plant planned the units to be sold as follows: 1st quarter 20% decrease from the last quarter of previous year; 2nd quarter 10% decrease from 1st quarter, 3rd quarter 25% increase from the 2nd quarter; 4th quarter 20% increase from the 3rd quarter. The Selling price for one unit is planned to be $352.00. The term of payment for suppliers is n/20. 3/5 of sales will be collected in the same quarter and the remaining 2/5 of sales be collected in the following quarter. The Plant started the quarter with previous quarters receivables and assumed to be collected in the 1st quarter; will end the year with $463,795.20 (2/5 of the final quarter's expected sales). The company always plans to end each quarter with sufficient inventory to cover 20% of the following quarter's planned sales. First quarter of 2025 projected sales estimated to be 3500 units Each unit of product requires 15lb of raw materials. It maintains raw materials inventory as 25% of the following quarter's production needs. It also reveals that a planned end of year inventory of 15,700 lb. Cost per unit of raw materials is $2.45 per lb. The Company pays 70% of each quarter's purchases in the quarter of purchase and the remaining 30% is paid in the following period. In the 1st quarter, the plant will have $33,626 cash payment for previous quarters purchase. Based on the fact presented above, prepare: 1. Sales Budget 2. Direct materials purchase budget
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Posted Date:
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