The data below pertains to the third quarter of Beval Company which manufactures men’s wallets. Below is the estimated sales (in units):

July 25,000

August 55,000

September 75,000

October 35,000

November 10,000

December 15,000

b. The selling price of the wallet is $10 per unit

. c. All sales are on account. Based on past experience, sales are collected in the following pattern: Month of sale 25% Month following sale 70% Uncollectible 5%

d. Sales for June totaled $400,000.

e. The company maintains finished goods inventories equal to 20% of the following month's sales. This requirement will be met at the end of June.

f. Each wallet requires 3 pounds of raw materials.

g. The company requires that the ending inventory of raw materials be equal to 10% of the following month's production needs.

h. The raw material costs $1.50 per pound

. i. 40% of a month's purchases of raw materials is paid for in the month of the purchase; the remainder is paid for in the following month. j. The Accounts Payable on June 30 will be $80,000.

Prepare:

1. Prepare a sales budget, by month and in total, for the Third quarter.

2. Prepare a schedule of expected cash collections, by month and in total, for the Third quarter.

3. Prepare a production budget for each of the months July, August, September and October.

4. Prepare a direct materials budget, by month and in total, for the Third quarter.

5. Prepare a schedule of expected cash disbursements, by month and in total, for the Third quarter.

Prepare:

1. A schedule of expected cash collections

2. A cash budget

Answer rating: 100% (QA)

1 preparatipon of sales budger for third quarter particulars july august september total sales in units a 25000 55000 75000 155000 selling price per u... View the full answer