The following information has been gathered to assit you in preparing the master budget for Fore...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information has been gathered to assit you in preparing the master budget for Fore Manufacturing Limited: 1. Budgeted sales for the next four months are as follows: July 20,000 August 30,000 September 22,000 October 21,000 The selling price is $50.00 per unit. Sales are 75% on credit & 25% cash. Of the credit sales 60% are collected in month of sale & 40% are collected in subsequent month. 2. The accounts receivable at June 30, 2021 of $417,870 will be collected in July. 3. The company produces enough units each month to meet the months sales plus a desired ending inventory equal to 20% of the next month's estimated sales. 4. Fore pays 40% of direct materials in the month of purchase & pays the remaining 60% in the following month. Each unit of product requires 8 kg of direct materials at a cost of $1.25 per kg. The company purchases enough direct materials each month for the current month's production and 15% of next month's production requirements. Beginning & ending inventory for the quarter of direct materials are budgeted to be 33,000 for beginning & 20,000 for ending. 5. The Accounts payable balance at June 30 of $146,200 will be paid in July. 6. The company plans to pays dividends of $10,000 in July & September. 7. Fore plans to purchase equipment for $15,000 in August & $25,000 in September. 8. Each unit produced requires 1 hours of direct labour at a cost of $20/hour. 9. The company wishes to maintain a minimum cash balance of $20,000 at the end of each month. 10. The company has an agreement with the local bank that allows them to borrow up to $100,000. The interest rate on the loans is 6% and there are no loans outstanding at June 30. All borrowing is done at the start of the month and all repayments are made at the end of the month. 11. The cash balance at June 30, 2021 is budgeted to be $21,000. Required: Using the excel file included in the assignment complete the following budgets for the third quarter of 2021 for Fore Manufacturing Limited (July, August, September). Sales Budget & Schedule of Expected Cash Collections Production Budget Direct Materials - Purchases & Cash Disbursements Budget Direct Labour Budget Cash Budget You may complete the assignment in excel or print out the template & complete it by hand. The following information has been gathered to assit you in preparing the master budget for Fore Manufacturing Limited: 1. Budgeted sales for the next four months are as follows: July 20,000 August 30,000 September 22,000 October 21,000 The selling price is $50.00 per unit. Sales are 75% on credit & 25% cash. Of the credit sales 60% are collected in month of sale & 40% are collected in subsequent month. 2. The accounts receivable at June 30, 2021 of $417,870 will be collected in July. 3. The company produces enough units each month to meet the months sales plus a desired ending inventory equal to 20% of the next month's estimated sales. 4. Fore pays 40% of direct materials in the month of purchase & pays the remaining 60% in the following month. Each unit of product requires 8 kg of direct materials at a cost of $1.25 per kg. The company purchases enough direct materials each month for the current month's production and 15% of next month's production requirements. Beginning & ending inventory for the quarter of direct materials are budgeted to be 33,000 for beginning & 20,000 for ending. 5. The Accounts payable balance at June 30 of $146,200 will be paid in July. 6. The company plans to pays dividends of $10,000 in July & September. 7. Fore plans to purchase equipment for $15,000 in August & $25,000 in September. 8. Each unit produced requires 1 hours of direct labour at a cost of $20/hour. 9. The company wishes to maintain a minimum cash balance of $20,000 at the end of each month. 10. The company has an agreement with the local bank that allows them to borrow up to $100,000. The interest rate on the loans is 6% and there are no loans outstanding at June 30. All borrowing is done at the start of the month and all repayments are made at the end of the month. 11. The cash balance at June 30, 2021 is budgeted to be $21,000. Required: Using the excel file included in the assignment complete the following budgets for the third quarter of 2021 for Fore Manufacturing Limited (July, August, September). Sales Budget & Schedule of Expected Cash Collections Production Budget Direct Materials - Purchases & Cash Disbursements Budget Direct Labour Budget Cash Budget You may complete the assignment in excel or print out the template & complete it by hand.
Expert Answer:
Answer rating: 100% (QA)
A 1 2 3 4 5 6 7 8 9 10 11 12 4 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 ... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
Rice Products Pty. Ltd. is a local firm that produces two moulded plastic products: kickboards and pool buoys. The products are manufactured in a two step process and each process is treated as a...
-
Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's operations: Current Assets as of December 31 (prior...
-
Garneau Manufacturing Ltd. produces and distributes a special type of chemical compound called Compound WX. The information below about Garneaus operations has been assembled to assist budget...
-
The post-closing trial balances of two proprietorships on January 1, 2010, are presented below. Patrick and Samuelson decide to form a partnership, Pasa Company, with the following agreed upon...
-
Prem International has two large subsidiaries, Oil and Chemical. Oil is an oil-refining business, and its main product is gasoline. Chemical produces and sells a variety of chemical products....
-
Determine the moments at and ¢ if the support ¡ moves upward 5 mm. Assume ¡ is a roller and and ¢ are fixed. EI = 60(10 6 ) N · m 2 . 5 25 kN/m 3. 2 3. 6 m 4 m
-
According to an article on bloomberg.com, in 2023, Blythe Masters, a former executive at the bank JPMorgan Chase, predicted major changes would occur during the next 10 years in banking and other...
-
Shiraz Rugs began operations on February 1. It uses a perpetual inventory system. During February, the company had the following purchases and sales. Instructions (a) Determine the ending inventory...
-
The story is rich dad poor dad chapter 3 1) What is rule #1? 2) What is an asset? Give 3 examples. 3) What is the difference between an asset and a liability? 4) According to "Rich Dad", when can a...
-
Assume the following data for Animal Transport Company REFERENCE REVENUE BUDGET Requirement Prepare a cash budget for April for Animal Transport. Begin the cash budget by calculating the cash...
-
Roger Jones is a doctor who operates a medical practice. Roger employs two employees (a nurse and a receptionist). Another doctor works at the practice as an employee on a part-time basis. The...
-
Your cousin is always bragging about how high his model rockets go, so you go shopping. None of the brands specify altitude, but you do find three models in your price range with comparable technical...
-
A classmate leaves a message on your voice mail betting that you cannot throw a stone high enough so it lands on the roof of a 20 -m-high building. As you stare out of your window pondering whether...
-
A man steps outside one winter day to go to work. His icy driveway is \(8.0 \mathrm{~m}\) long from top to mailbox, and it slopes downward at \(20^{\circ}\) from the horizontal. He sets his briefcase...
-
You are touring a distant planet on which the magnitude of the free-fall acceleration is \(65.0 \%\) of what it is on Earth. For a little excitement, you jump off a precipice \(500 \mathrm{~m}\)...
-
Two children at a playground slide from rest down slides that are of equal height but are inclined at different angles with respect to the horizontal (Figure P3.66). Ignoring friction, at height...
-
The 2020 balance sheet of Osaka's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an...
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
Select an industry you are interested in and select three companies within that industry. Obtain their annual reports by going to each companys website and downloading the report for the most recent...
-
Emerald Service anticipates the following sales revenue over a five- month period: The company's sales are 20% cash and 80% credit. Its collection history indicates that credit sales are collected as...
-
Princeton Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2. Why does the average cost per garment...
-
When an organization decides to replace a legacy system, it usually chooses a contemporary database system over a relational file-based system. But each type of system has its own advantages and...
-
Complete the following sentences: system is also called a distributed data and application client/server system or
-
The textbook states that "data is a resource that must be controlled and managed." Explain this statement, and indicate whether you agree of not, and why.
Study smarter with the SolutionInn App