Required:Prepare the following for the first quarter:1. Cost of goods sold budget.2. Selling and administrative expense budget.3. Budgeted income statement for the handisaw product.Preparing Operating Budgets for a Merchandising FirmРАЗЗ-6Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the LO33-5coming year, along with the following information:Quarter 1Quarter 2Quarter 3Quarter 4Budgeted unit sales40,00060,00030,00060,000• Each T-shirt is expected to sell for $15.• The purchasing manager buys the T-shirts for $6 each.• The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter's sales demand.Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue.Required:Prepare the following operating budgets for quarters 1, 2, and 3. (You do not have enough information to complete quarter 4.)1. Sales budget.2. Merchandise purchases budget.3. Cost of goods sold budget.4. Selling and administrative expense budget.5. Budgeted income statement.1285 / 1337->MARLEGO23LiveMacBook A

The budget is prepared by the company to estimate the mount of future expenses and future incomers.…

Answered: Required: Prepare the following for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2) Based on the following information from a commercial company, prepare the following budgets for the months of April and May. • Sales budget and portfolio collection• Shopping budget• Purchase budget and payment to suppliers• VAT budget x pay. The Hermanos Montiel company markets food and groceries and knows that March sales were $120,000,000 and it is projected to increase them by 5% and 8% for the months of April and May respectively. The company's sales policy is to pay 20% cash and finance the balance in 30 days. The merchandise is from national suppliers which offer 85% credit to pay in 30 days. The contribution rate with which the company works is 20% and the inventory policy is to maintain stocks for 18 days. VAT taxes are paid four-monthly and correspond to 19%. The following is the Balance Sheet as of March 31, 2023 Assets box 200.000 accounts receivable 83.520.000 inventories 39.000.000 Total Current Assets 122.720.000 machinery and equipment 18.000.000…
Assume that The AM Bakery is preparing a budget for the month ending November 30. Management prepares the budget by starting with the actual results for August that are shown below. Then, management considers what the differences in costs will be between August and November. Ingredients Flour Butter Oil Fruit Nuts Chocolate Other Total ingredients Labor Channel manager Other Utilities Rent Marketing Total bakery costs Revenues THE AM BAKERY Bakery Sales Actual Costs For the Month Ending August 31 Actual $ 4,100 3,700 1,900 1,400 940 840 440 $ 13,320 $4,600 10,900 2,550 3,750 250 $ 35,370 $ 57,200 Budgeted $ 3,860 3,540 2,040 1,090 880 840 310 $ 12,560 4,600 11,400 2,410 3,750 140 $ 34,860 $57,200 Difference $240 160 (140) 310 60 130 $ 760 (500) 140 110 $510 Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (e.g., flour, butter, and so on) to be 25 percent higher in November than in August. Management expects "other" labor…
The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for $25. The company began the period with a beginning accounts receivable balance of $10,000. Choose the correct answer from the options provided. Budgeted unit sales Percentage of sales collected in the quarter of the sale Percentage of sales collected in the quarter after the sale. Quarter First Second Third Fourth 1,500 1,300 1,400 1,300 Knowledge Check 01 What is the amount of budgeted sales revenue for the fourth quarter? O $32,500 $33,750 O $35,000 $37,500 $8,125 O $8,750 O $9,375 O $28,125 Year 5,500 75% 25% Knowledge Check 02 What is the amount of cash that is expected to be collected during the second quarter as a result of sales made during the first quarter?
A manager of one Indian restaurant with a take-away service wants to prepare a detailed budget for the next year. The following information is available from the monthly accounts. Calculate the fixed and variable cost elements using the high-low method. Month July August September October November December No. of deliveries 403 291 348 521 387 Total delivery cost (OMR) 662.70 561.90 613.20 627.60 768.90 648.30
Assume that The AM Bakery is preparing a budget for the month ending December 31. Management prepares the budget for the month ending December 31 by starting with the actual results for August that are shown below. Then, management considers what the differences in costs will be between August and December. Ingredients Flour Butter Oil Fruit Nuts Chocolate Other Total ingredients Labor Channel manager Other Utilities Rent Marketing Total bakery costs Revenues Ingredients Flour Butter Oil Fruit Nuts Chocolate Other THE AM BAKERY Bakery Sales Actual Costs THE AM BAKERY Bakery Sales Actual Costs For the Month Ending August 31 Actual For the Month Ending December 31 Total ingredients Labor Channel manager Other Utilities Rent $ 4,000 3,600 1,800 1,400 925 825 425 $ 12,975 Marketing Total bakery costs. Revenues $ 4,600 10,850 2,500 3,650 225 $ 34,800 $ 57,200 Management expects revenue to be 100 percent greater in December than in August because of the holiday season. Management expects…
Dear Bartleby, can you please help with "calculations for cost of goods sold/operating expenses occured in the following problem, for March, April, May and June, thank you. Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: April May June Sales $ 112,000 $ 136,000 $ 152,000 Cost of goods sold* 76,800 91,200 100,800 Gross profit $ 35,200 $ 44,800 $ 51,200 Operating expenses† 17,600 20,000 21,600 Operating income $ 17,600 $ 24,800 $ 29,600 *Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead).†Includes all period costs (i.e., selling, general, and administrative expenses).The company expects about 40% of sales to be cash transactions. Of sales on account, 65% are expected to be collected in the first month after the sale is made, and 35% are expected to be collected in the second month after sale. Depreciation,…
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Estimated inventory (units), June 1 Desired inventory (units), June 30 Expected sales volume (units): Midwest Region South Region Unit sales price a. Prepare a sales budget. Product and Area Model: Rumble Midwest Region South Region Total Model: Thunder Midwest Region South Region Total Total revenue from sales 1000 1000 Rumble LA 250 Sonic Inc. Sales Budget For the Month Ending June 30 Unit Sales Volume 287 2,400 5,800 $110 00 3 Thunder 75 65 Unit Selling Price Total Sales 2,100 6,550 $215 10000 1000
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 260 64 Desired inventory (units), June 30 299 56 Expected sales volume (units): Midwest Region 2,900 2,550 South Region 5,650 4,900 Unit sales price $95 $220 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending June 30 Product and Area Unit Sales Volume Unit Selling Price Total Sales Model: Rumble Midwest Region South Region Accounting numeric field Total Model: Thunder Midwest Region South Region Total Total revenue from sales
Budget PreparationCollins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 9,000 units, respectively, and the unit selling price is $39? $Answer b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? Answer c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $Answer d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $10? $Answer e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $46,000 and…
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 219 70 Desired inventory (units), June 30 252 61 Expected sales volume (units): Midwest Region 2,250 2,500 South Region 4,950 5,600 Unit sales price $115 $185 a. Prepare a sales budget. b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 16,000 units, respectively, and the unit selling price is $48? $Answer b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? Answer c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $Answer d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $17? $Answer e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $55,000 and variable…
Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 16,000 units, respectively, and the unit selling price is $48? $Answer b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? Answer c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $Answer

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