pps Home-Liferay Koch Discount hranoo > sigh in Johnson Inc. sells high-tech sta

Question

pps Home-Liferay Koch Discount hranoo > sigh in Johnson Inc. sells high-tech staplers. Johnson is preparing budgets for the quarter ending September 30 2017. The sales price is $14.00 per stapler. Johnson expects the following number of units to be sold in the coming year July Angust September October 10,000 25,000 15,000 12,500 Prepare a sales budget for the third quarter of the coming year, showing units and sales revenue by month and in total for the quarter. Check Figure: Total projected sales revenue for the quarter-$700,000 2. Prodaction Buadeet Johnson wants ending inventory to be 15 percent of the next month's budgeted sales in units. 4,000 units were on hand June 30. Required Prepare a production budget for the third quarter of the year. Show the number of staplers that should be produced each month as well as for the quarter in total. Check Figure: Total budgeted product units to produce for the quarter- 47,875 3. Materials Purchass Budect Three sheets of metal are required to produce a single stapler. Johnson wants to have materials on hand at the end of each month equal to 20 percent of the following month's production needs. The materials inventory on June 30 is 8,000 sheets of metal. October production is budgeted for 15,000 units. Required: Prepare a direct materials purchases budget for metal sheets for the quarter ending September 30. Show how many sheets of metal should be purchased cach month as well as for the quarter in total. Check Figure: Total budgeted units of material to purchase for the quarter 144,625 2

Explanation / Answer

1.Prepartion of Sales Budget July August September Total Sales Unit 10000 25000 15000 50000 Selling Price/Unit $14 $14 $14 $14 Budgeted Sales Value $140,000 $350,000 $210,000 $700,000 2. Prepartion of Production Budget July August September Total Sales Unit 10000 25000 15000 50000 Add: Ending Inventory (15% of Nex Month Sales) 3750 2250 1875 1875 Less Beginning Inventory -4000 -3750 -2250 -4000 Production Unit 9750 23500 14625 47875 3. Preparation of Direct Material Purchase Budget July August September Total Production Unit 9750 23500 14625 47875 Raw material Rquired for Prodcution Unit @ 3 sheet/Unit 29250 70500 43875 143625 Add: Ending Inventory ( in Pound) 20% of Next Month 14100 8775 3000 3000 Less: Beginning Inventory (in Pound) -8000 -14100 -8775 -8000 Total Raw Material Purchase ( Pound) 35350 65175 38100 138625 4. .Schedule of Expected Cash Payment for Material Purchase April May June Total Account payable, Beginning Balance $24,200 $24,200 July Purchase $45,955 $24,745 $70,700 May purchase $84,728 $45,623 $130,350 June Purchase $49,530 $49,530 Total Cash payment $70,155 $109,473 $95,153 $274,780 5. .Schedule of Expected Cash Payment for Direct Labour April May June Total Production Unit 9750 23500 14625 47875 Labour Minute Require/Unit 30 30 30 30 Total Labour Minute Required 292500 705000 438750 1436250 Labout time in Hour 4875 11750 7313 23938 Labour Cost @ 7/Hour $34,125 $82,250 $51,188 167563 Total Cash payment $34,125 $82,250 $51,188 167563 Note : Only 4 Part aloowed as per Chegg Policy

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