ited Getting Started io Company manufactures beach umbrelas. The company is prep
ID: 2463088 • Letter: I
Question
ited Getting Started io Company manufactures beach umbrelas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: .The Marketing Department has estimated sales as follows for the remainder of the year (in unts): The selling price of the beach umbrellas is $10 per unit July August 36,500 October 26,500 83,000 November 13,000 September 52,000 December 13,500 b.All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $320,000. c.The company maintains finished goods inventories equal to 1S% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Glden be equal to 50% of the folowing months production needs. The inventory of Gilden on hand at the beginning and end of the quarter ill be 86,950 feet June 30 September 30 ? feet e Giden costs $0.80 per foot One-half of a month's purchases of Giden is paid for in the month of purchase, the remainder is paid for in the following month. The accounts payabie on July 1 for purchases of Giden during June wi be 560.920 Search the web and WindowsExplanation / Answer
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3-b
July August September Quarter Budgeted units sales 36,500 83,000 52,000 171,500 Selling price per unit $10 $10 $10 $10 Budgeted sales $365,000 $830,000 $520,000 $1,715,000Related Questions
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