Question: I need help finding this number and how?? You are the cost accountant at Posey s Pet Emporium tasked with preparing quarterly budgets that determine
I need help finding this number and how??
You are the cost accountant at Poseys Pet Emporium tasked with preparing quarterly budgets that determine the cash effects of the companys sales and productionrelated expenditures. The company uses a calendar year, and it is time to prepare the thirdquarter budget. You have the following information:
The budgeted selling price for the year is $ per unit. Sales volumes are budgeted as follows for the last month of quarter two, for all of quarter three, and for part of quarter four.
June July August September October
Historically, of Poseys sales are cash sales. Of the remaining credit sales, are collected in the month of sale, while are collected the following month. The remainder is deemed uncollectible.
Management sets its ending finished goods inventory goal at of the following months sales volume. The accounting team expects this policy will be met at the beginning of the second quarter.
The target ending inventory for Poseys primary direct material is of the following months production needs. Each completed unit requires five pounds of direct materials at an expected cost of $ per pound. The budgeted production for October is
Poseys pays for of its purchases in the month of purchase and the month after purchase. Total budgeted purchases in June are $
Poseys ending cash balance on June was $
Poseys nonproduction cash disbursements are estimated at $ per month
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
