The following information pertains to Finn Corporation Month Sales (units) Sales
ID: 2525178 • Letter: T
Question
The following information pertains to Finn Corporation Month Sales (units) Sales (dollars 1,500 1,700 1,900 1,680 1,920 2,400 2,250 2,000 1,800 1,600 1,500 1,400 $30,000 34,000 38,000 42,000 48,000 60,000 60,750 52,000 45,000 41,600 30,000 32,200 ul August September October November December anuary February March April ay une Of sales, 25% are in cash with the remainder on account. Accounts Receivable is collected from customers in the following manner: Month of sale 30% Month following sale 50% Second month following sale 20% Finn Corporation desires ending inventory for finished goods to be 30% of next month's sales. Each unit requires three pounds of material, each pound costs $0.75. Finn Corporation desires ending inventory of raw materials should be 50% of next month's needs plus 200 pounds. Materials are purchased on account. Payments are 60% in the month of sale with the remainder paid in the following month. The previous month's balance was $1625. In addition, each unit requires three hours of labor, each labor hour costs $12.50. REQUIRED: repare a Revenue budget for February, including revenue, cash collections, and accounts receivable. 2. Prepare a Production Budget for February. 3. Prepare a Raw Materials Purchases Budget for February, including.cash disbursements and accounts payable. Prepare the Direct Labor Budget including payments. 4.Explanation / Answer
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Sales Budget February unit sales 2000 Sales Value 52000 Cash sales 13000 Credit Sales 39000 Cash Collection budget February Cash sales 13000 Credit sales: December sales 9000 January Sales 22781 February 11700 Total collections 56481 Receivables February January Sales 9113 February 27300 Total 36413Related Questions
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