Exercise D5-13 Marigold Auto has developed the following production plan for its

Question

Exercise D5-13 Marigold Auto has developed the following production plan for its new auto part. January February March April 10,680 Budgeted production (units) 8,910 9,850 14,070 Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 128% of the next month's production needs, plus an additional 565 pounds. January's beginning inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to O decimal places, e.g. 5,275.) January February March Quarter Exercise D5-21 In the coming year, Marigold, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $18 to retailers throughout the country. All sales will be made on account. An expected 66% of sales will be collected within the quarter of the sale, and another 29 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows 1st Quarter 25,800 2nd Quarter 44,100 3rd Quarter 50,100 4th Quarter 86,100 Budgeted sales units Prepare Marigold, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price Budgeted sales revenue s Cash Receipts Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter Bad Debts 1st quarter sales 2nd quarter sales 3rd quarter sales 4th quarter sales Totals Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year, Net Accounts Receivable $

Explanation / Answer

D5-13]    Direct material purchase budget

3

3

3

10680*128% + 565

= 14235

92660

Note:- Ending Direct material

   Jan= 128% * 8910 + 565 =11970

   Feb= 128% * 9850 + 565 =13173

mar = 128% * 14070 + 565 = 18575

January February March Quarter Production in units 10680 8910 9850 29440 Direct material required per unit

3

3

3

Direct material required of productions 32040 26730 29550 88320 Add: Ending budgeted Direct material 11970 13173 18575 18575 44010 39903 48125 106895 less: Beginning budgeted Direct material

10680*128% + 565

= 14235

11970 13173 14235 Direct material purchase 29775 27933 34952

92660

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.