Dhapa Required information[The following information applies to the questions displayed below.]Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July2022. The firm sells the product for $85 per unit and has the following expected sales (in units) forthese months in 2022:April4,500May5,900June6,000July7,000August8,000September7,000The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy isto maintain an ending inventory each month equal to 10% of the following month's budgeted sales, butin no case less than 500 units. All materials inventories are to be maintained at 5% of the productionneeds for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the endof June to be within the guidelines. The purchases department expects the materials to cost $1.25 perpound and $5.00 per pound for Dura-1000 and Flexplas, respectively.The production process requires direct labor at two skill levels. The rate for labor at the K102 level is$50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflexper hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of anhour of K175 workers' time for each unit manufactured.Required:On the basis of the preceding data and projections, prepare the following budgets:a. Sales budget for July (in dollars).b. Production budget for July (in units).c. Production budget for August (in units).d. Direct materials purchases budget for July (in pounds).e. Direct materials purchases budget for July (in dollars).f. Direct manufacturing labor budget for July (in dollars).a. Sales budget for July (in dollars)b.Production budget for July (in units)C.Production budget for August (in units)d.Direct materials purchases budget for July (in pounds)e.Direct materials purchases budget for July (in dollars)f.Direct manufacturing labor budget for July (in dollars)$595,0007,1007,900

Budgeting is the process of undertaking plans to spend money. This plan enables the business to…

Required: On the basis of the preceding data and projections, prepare the following budgets: a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). e. Direct materials purchases budget for July (in dollars). f. Direct manufacturing labor budget for July (in dollars).

Required: On the basis of the preceding data and projections, prepare the following budgets: a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). e. Direct materials purchases budget for July (in dollars). f. Direct manufacturing labor budget for July (in dollars).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Corona2020, a merchandising firm, needs to prepare budgets for July 2020. The followings arethe data regarding the company’s plans for 2020.1. The actual and forecasted sales (in units) of the company are as follows:June 55,000 July 70,000 August 75,000The unit-selling price is estimated at RM14.50. All sales are on account; 60% of themonthly sales is expected to be collected in the month of sales, and another 40% will bereceived in the following month after the sales.2. The company’s policy indicates that the ending inventory of merchandises should be equalto 15% of the current month’s sales plus 5% of the following month’s sales.3. The cost of goods sold is about 65% of the total monthly sales.4. The company pays 60% of the purchase in cash, and the balance is paid in the followingmonth after the purchases. Total cost of merchandises purchased in June was RM594,500.5. In July 2020, the company expects to purchase a piece of commercial land costingRM80,000.6. Monthly administrative…
Hansell Company’s management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $85 per unit and has the following expected sales (in units) for these months in 2019: April May June July August September 4,500 5,900 6,000 7,000 8,000 7,000 The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm’s policy is to maintain an ending inventory each month equal to 10% of the following month’s budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50…
Hansell Company’s management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $85 per unit and has the following expected sales (in units) for these months in 2019: April May June July August September 4,500 5,900 6,000 7,000 8,000 7,000 The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm’s policy is to maintain an ending inventory each month equal to 10% of the following month’s budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor…
Mazoon Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 35000 units and determined the selling price as 28 OMR per unit. According to these estimates, which of the following is Sales (OMR)? Select one: O a. The correct answer not available O b. 1112500 OMR O c. 980000 OMR O d. 890000 OMR O e. 9780000 OMR
The Company produces widgets. The sales forecast for 2022 is as follows: Quarter 1 3,000 Quarter 2 8,000 Quarter 3 5,000 Quarter 4 6,000 The unit selling price of the widgets is $200 each. Prepare a Sales Budget for 2022, including the annual total.
Accounting Assume that we have the following estimations of the sales units for the 2024 sales, and that there should be 25% to be kept as closing balance from next quarter, and that the opening balance of the product (X) is 800 Units. You are required to prepare the 2024 budget of production: 1st Quarter,2024 2000 units 2nd Quarter,2024 6000 units 3rd Quarter,2024 5000 units 4th Quarter,2024 4000 units 1st Quarter,2025 2000 units A” Company estimates its sales for the next “5” months as following Feb March April May Jun July 10000 12000 15000 16000 18000 20000 “A” expects to sale at OMR 5 per unit. Sales policy is to receive 30% of its sales in cash in the same month of sale and 50 % in the next month and the rest on the third month. Purchases cost is expected to be 70% of the next month sales and is paid in two equal installments in the two…
The Company produces widgets. The sales forecast for 2022 is as follows: 2022 Quarter 1 3,000 Units 2022 Quarter 2 8,000 Units 2022 Quarter 3 5,000 Units 2022 Quarter 4 6,000 Units 2023 Quarter 1 5,000 Units The beginning of the year inventory of widgets was 900 units. Management desires and ending inventory each quarter of 30% of the following quarter's sales units. Prepare the quarterly production budget for each quarter of 2022 (No need to indicate the total for the year).
Mungus Coffee has recently recruited you to assist them with the financial aspect of their business. One component of your job is prepare budgets. The Income Statement for last year is presented below and you are required to create a Proforma Income Statement for July 31st 2021 using the fixed variable method. The company expects Sales to increase by 5%. Mungus Coffee Income Statement For the period July 31st 2020 Sales 126,000 Less Cost of Goods Sold 54,000 (variable) Gross Profit 72,000 Less Operating Expenses: Marketing Expense 28,400 (6000 variable and 22,400 fixed) General and Admin. Expense 8,600 (3000 variable and 5,600 fixed) Total Operting Expense 37,000 Operating Income 35,000 Less Interest Expense 1,800 (fixed)…
Paddle Up, a retailer of paddle boards, has provided you with the following information: Budgeted Sales (units) February 2022 150 March 2022 110 April 2022 70 a) Paddle Up sells each board for $400 and purchases each board for $250. b) Paddle Up plans to maintain inventory on hand at the end of each month to be 20% of next month's sales volume. You can assume this to be the situation at the end of January 2022. c) 40% of sales are made on cash basis with the remaining 60% - on credit. All credit sales are collected in the month following the sale. d) 50% of inventory purchases are made on cash basis with the remaining 50% - on credit. All credit purchases are paid in the month following the purchase. e) The following cash expenses are incurred on a monthly basis: Rent ($5,300); Wages ($5,400); Utilities ($2,100); Insurance ($600). The business also recognises $3,000 of depreciation expense each month. f) The monthly drawings by the owner Paddle Up include: $2,000 cash and 1 board for…
Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2022. The estimated January 1, 2022, inventory is 6,500 units, and the desired December 31, 2022, inventory is 7,000 units. What is the budgeted production (in units) for 2022? * A. 65,000 B. 66,000 C. 76,500 D. 75,500
The Nagiaca Company expects sales in 2019 of 205,000 units of desks. Nagiaca’s beginning inventory for 2019 is 10,000 desks and its target ending inventory is 15,000 desks. Required: Compute the number of chairs budgeted for production in 2019. a. 210000 desks b. 217000 desks c. 200000 desks d. 205000 desks The Nagiaca Company expects sales in 2019 of 205,000 units of desks. Nagiaca’s beginning inventory for 2019 is 10,000 desks and its target ending inventory is 15,000 desks. Required: Compute the number of chairs budgeted for production in 2019. a. 210000 desks b. 217000 desks c. 200000 desks d. 205000 desks The Nagiaca Company expects sales in 2019 of 205,000 units of desks. Nagiaca’s beginning inventory for 2019 is 10,000 desks and its target ending inventory is 15,000 desks. Required: Compute the number of chairs budgeted for production in 2019. a. 210000 desks b. 217000 desks c. 200000 desks d. 205000 desks The Nagiaca Company expects…
Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in January? Ru O a. 40,500 O b. 16,300 1 Oc. None of the given answers. O d. 34,000 O e. 23,700 O f. 27,500