Pillows.com makes decorative throw pillows for home use. The company sells the pillows to home dcor...

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Pillows.com makes decorative throw pillows for home use. The company sells the pillows to home dcor retailers for $14 per pillow. Each pillow requires 1.40 yards of fabric, which the company obtains at a cost of $6 per yard. The company would like to maintain an ending stock of fabric equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to 25% of the next month's sales. Sales (in units) are projected to be as follows for the first three months of the year: (Click the icon to view the projected sales (in units) for the first three months of the year.) Read the requirements. Pillows.com Sales Budget For the Quarter Ended March 31 January More info February March Unit sales 110,000 $ Unit selling price 14 $ 1,540,000 $ 120,000 14 $ 1,680,000 $ 140,000 1st Quarter 370,000 January... 14 $ 1,960,000 $ February.. 14 March 5,180,000 Total sales revenue Cash sales Credit sales $ 154,000 $ 1,386,000 1,540,000 $ 168,000 $ 1,512,000 1,680,000 $ 196,000 $ 1,764,000 1,960,000 $ 518,000 4,662,000 5,180,000 Total sales Requirements 110,000 120,000 140,000 Requirement 2. Prepare the production budget. Assume that the company anticipates selling 210,000 units in April. Pillows.com Production Budget For the Quarter Ended March 31 Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter: 1. Prepare the sales budget, including a separate section that details the type of sales made. For this section, assume that 10% of the company's pillows are cash sales, and the remaining 90% are sold on credit terms. 2. Prepare the production budget. Assume that the company anticipates selling 210,000 units in April. Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January February March 1st Quarter 3. Prepare the direct materials purchases budget. Assume the company needs 240,000 yards of fabric for production in April. Print Done Pillows.com makes decorative throw pillows for home use. The company sells the pillows to home dcor retailers for $14 per pillow. Each pillow requires 1.40 yards of fabric, which the company obtains at a cost of $6 per yard. The company would like to maintain an ending stock of fabric equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to 25% of the next month's sales. Sales (in units) are projected to be as follows for the first three months of the year: (Click the icon to view the projected sales (in units) for the first three months of the year.) Read the requirements. Pillows.com Sales Budget For the Quarter Ended March 31 January More info February March Unit sales 110,000 $ Unit selling price 14 $ 1,540,000 $ 120,000 14 $ 1,680,000 $ 140,000 1st Quarter 370,000 January... 14 $ 1,960,000 $ February.. 14 March 5,180,000 Total sales revenue Cash sales Credit sales $ 154,000 $ 1,386,000 1,540,000 $ 168,000 $ 1,512,000 1,680,000 $ 196,000 $ 1,764,000 1,960,000 $ 518,000 4,662,000 5,180,000 Total sales Requirements 110,000 120,000 140,000 Requirement 2. Prepare the production budget. Assume that the company anticipates selling 210,000 units in April. Pillows.com Production Budget For the Quarter Ended March 31 Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter: 1. Prepare the sales budget, including a separate section that details the type of sales made. For this section, assume that 10% of the company's pillows are cash sales, and the remaining 90% are sold on credit terms. 2. Prepare the production budget. Assume that the company anticipates selling 210,000 units in April. Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January February March 1st Quarter 3. Prepare the direct materials purchases budget. Assume the company needs 240,000 yards of fabric for production in April. Print Done