Prepared the following budgets: Sales budgets Production budgets Raw material purchase budget Direct labor cost budgets Cash
Question:
Prepared the following budgets:
Sales budgets
Production budgets
Raw material purchase budget
Direct labor cost budgets
Cash receipts budgets
Assumptions
Sales budgets
First quarter budgeted sales 10000 units First that Increase 10% in 2nd quarter & third quarter , in fourth quarter 10,000 units
Per units prices in Each quarter 1,000
Production budgets
There is no beginning inventory in first quarter Inventory at the end of the year equal to 40% of the total units sold
Raw material Purchase Budget
One unit of finished product requires 2 units of raw material
5,000 units of beginning inventory in the first quarter
Inventory at the end of the year is equal to 36% of the total units produced
Per units price of raw material 50
Direct labor cost budget
2 hours required for one finished unit Per hour at rate of 100
Cash collection budgets
50 % collected in the first quarter 30% in 2nd 15% in the third 5% in the fourth quarter Half of each quarter's sales are on accounts.
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura