Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Budgeted sales (units) Selling price per unit Total budgeted sales Balec budget July August Beptember Quarter
Q: Determine the amount of the child tax credit in each of the following cases: Answer is complete but…
A: Answer:- In tax law, modified adjusted gross income (MAGI) is used to establish eligibility for…
Q: 1. What do you think is automation? 2. Why is automation needed? 3. What do you think are the…
A: Automation refers to the use of technology, machinery, or systems to perform tasks with minimal…
Q: RJ Corporation has provided the following information about one of its inventory items: Number of…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: Part of your company's accounting database was destroyed during a ransomware attack. You have been…
A: Variances is the amount of difference between the actual values and the values estimated by the…
Q: Thornton Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model…
A: Overhead is allocated on the basis of the activity rate with respect to the activity. There are two…
Q: [The following information applies to the questions displayed below.] Buckley, an individual, began…
A: Tax Liability -A person's or business's outstanding debt to the government is referred to as their…
Q: Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C.…
A: LIMITING FACTOR Contribution margin is difference between selling price and variable cost.Limiting…
Q: The following information is available on Company A: Sales Operating Income $900,000 $36,000…
A: Fixed Assets Turnover is one of efficiency ratio being used in business. This shows how many times…
Q: Equipment acquired at a cost of $77,000 has an estimated residual value of $5,000 and an estimated…
A: The objective of the question is to calculate the depreciation for the current fiscal year and the…
Q: displayed below.] On January 1, 2024, Red Flash Photography had the following balances: Cash,…
A: Journal entries are fundamental records used in accounting to capture financial transactions. Both…
Q: Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful…
A: The objective of the question is to calculate the patent amortization expense for Year 4 and to…
Q: Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are…
A: Break-even point is the point in sales at which contribution margin is equal to total fixed cost. It…
Q: Please calculate the change in operating income due to cost leadership. Label each component as to…
A: To calculate the change in operating income due to cost leadership, we need to analyze the…
Q: Fact Pattern: Palmito Co. acquired 90% of the outstanding stock of the Slaughter Co. for $250,000 in…
A: A consolidated balance sheet is a financial statement that presents the combined financial position…
Q: Required Information [The following information applies to the questions displayed below.] Buckley,…
A: Tax liability is the amount of tax owed to the government by an individual, firm or company who has…
Q: TB Problem Qu. 4-122 (Algo) Hutchcroft Corporation uses the weighted-average... Hutchcroft…
A: The objective of the question is to calculate the cost of ending work in process inventory and the…
Q: "Laker Company reported the following January purchases and sales data for its only product. The…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Unadjusted Trial Balance is the trial balance before making adjustments. When a company enters all…
Q: Lauder Company manufactures and distributes various fixtures used primarily in new building…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: Capital investment evaluation methods can be grouped into which of the foll ing a. Methods that use…
A: Captial investment evaluation methods are the methods to evaluated viability of long term project.…
Q: Consolidation rules are similar between countries. Comment
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: Please answer requirement 2,
A: Solving for Unused Capacity and Cost SavingsRequirement 1: Unused Capacity and CostCalculate the…
Q: The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account,…
A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…
Q: In preparing closing entries for a merchandising company, the Income Summary account will be…
A: Closing entries are prepared at the end of accounting period to close temporary accounts such as…
Q: Equipment was acquired at the beginning of the year at a cost of $34,750. The equipment was…
A: The book value of an asset refers to the difference between the original cost of an asset and the…
Q: Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Calculate the net pay.
A: After deductions from gross pay, net pay is the amount of remuneration that remains distributable to…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: Budget means the expected value of future. Budget will be compared with actual value and variance is…
Q: Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All…
A: Journal entriesThe process of recording the day-to-day transactions of the company in the books is…
Q: now how the three inventory accounts are reported on the April 30 balance sheet. Complete this…
A: The objective of the question is to understand how the three types of inventory accounts - Raw…
Q: . Determine for each truck the depreciation rate per mile and the amount to be credited to the…
A: Depreciation : Depreciation is systematic process of writing down the value…
Q: Select financial statement data for two recent years for Davenport Company are as follows: Line…
A: The objective of the question is to calculate the fixed asset turnover ratio for the years 20Y4 and…
Q: Consider the following transactions for Tacoma Drug Store: View the transactions. Requirements 1.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: 18. Joe owns 1,000 shares of Reno Corporation common stock which he purchased in 20X6 for $10,000.…
A: Shares when sold profit is calculated by subtracting it's cost.
Q: December 31, with the first payment on June 30, 2024. Geo calculate lease payment amounts.…
A: Lease:A lease is a written agreement where one party allows the another party to use his/her assets…
Q: Problem 1. Humility Company bought 25% of Meekness Company's outstanding ordinary share on January…
A: Consolidations:Consolidations refer to the financial strategy of acquiring the stock of a company to…
Q: Assume a merchandising company's estimated sales for January, February, and March are $111,000,…
A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…
Q: www O 0 P7.3 (LO 3), AP On July 31, 2025, Keeds Company had a cash balance per books of $6,140. The…
A: The objective of this question is to prepare a bank reconciliation statement for Keeds Company as of…
Q: Alaska Mining Co. acquired mineral rights for $9,256,000. The mineral deposit is estimated at…
A: The objective of the question is to calculate the depletion expense for the current year and to…
Q: Aram's taxable income before considering capital gains and losses is $63,000. Determine Aram's…
A: The capital gain or loss takes place when a capital asset is sold for a lower value or higher value…
Q: Freight costs paid by a seller on merchandise sold to customers will cause an increase to a…
A: In operating expenses for the seller. Explanation:In operating expenses for the seller.When a seller…
Q: Belvedere Bricks manufactures bricks for the construction industry. It estimates that in June, it…
A: The cash budget is prepared to estimate the financing requirements for the period. The cash budget…
Q: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the…
A: Operational Lease:An operating lease is a rental contract that allows the lessee (the business using…
Q: Gain on Restructuring of Debt Pearl National Bank Land Bad Debt Expense Notes Receivable (c) Stellar…
A: Journal entries are used to record all the financial transactions in a business. It helps to know…
Q: Calvin reviewed his canceled checks and receipts this year (2021) for charitable contributions,…
A: The donations made to nonprofit organisations are known as charitable contributions. Money, non cash…
Q: Haas Company manufactures and sells one product. The following Information pertains to each of the…
A: Under variable costing, the fixed manufacturing overhead does not form part of product costs.…
Q: The spring semester at the University of Colorado begins in January. In addition to the above,…
A: To determine the amount of qualifying expenses for the American Opportunity Tax Credit (AOTC) and…
Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…
A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…
Q: Bingham Corporation uses the weighted-average method in its process costing system. Data concerning…
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: During its first year of operations, Concord Corporation had the following transactions pertaining…
A: Stockholder's Equity includes the amount contributed by shareholders in the form of common stock,…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lakeesha Barnett owns and operates a package mailing store in a college town. Her store, Send It Packing, helps customers wrap items and send them via UPS, FedEx, and the USPS. Send It Packing also rents mailboxes to customers by the month. In May, purchases of materials (stamps, cardboard boxes, tape, Styrofoam peanuts, bubble wrap, etc.) equaled 11,450; the beginning inventory of materials was 1,050, and the ending inventory of materials was 950. Payments for direct labor during the month totaled 25,570. Overhead incurred was 18,130 (including rent, utilities, and insurance, as well as payments of 14,050 to UPS and FedEx for the delivery services sold). Since Send It Packing is a franchise, Lakeesha owes a monthly franchise fee of 5 percent of sales. She spent 2,750 on advertising during the month. Other administrative costs (including accounting and legal services and a trip to Dallas for training) amounted to 3,650 for the month. Revenues for May were 102,100. Required: 1. What was the cost of materials used for packaging and mailing services during May? 2. What was the prime cost for May? 3. What was the conversion cost for May? 4. What was the total cost of services for May? 5. Prepare an income statement for May. 6. Of the overhead incurred, is any of it direct? Indirect? Explain.Heavenly Chocolates manufactures and sells quality chocolate products at its plant and retail store located in Saratoga Springs, New York. Two years ago, the company developed a web site and began selling its products over the Internet. Web-site sales have exceeded the company’s expectations, and management is now considering strategies to increase sales even further. To learn more about the web-site customers, a sample of 50 Heavenly Chocolate transactions was selected from the previous month’s sales. Data showing the day of the week each transaction was made, the type of browser the customer used, the time spent on the web site, the number of web pages viewed, and the amount spent by each of the 50 customers are contained in the file named Heavenly Chocolates. A portion of the data is shown in the table that follows: Heavenly Chocolates would like to use the sample data to determine whether online shoppers who spend more time and view more pages also spend more money during their visit to the web site. The company would also like to investigate the effect that the day of the week and the type of browser have on sales. Managerial Report Use the methods of descriptive statistics to learn about the customers who visit the Heavenly Chocolates web site. Include the following in your report. Graphical and numerical summaries for the length of time the shopper spends on the web site, the number of pages viewed, and the mean amount spent per transaction. Discuss what you learn about Heavenly Chocolates’ online shoppers from these numerical summaries. Summarize the frequency, the total dollars spent, and the mean amount spent per transaction for each day of week. Discuss the observations you can make about Heavenly Chocolates’ business based on the day of the week? Summarize the frequency, the total dollars spent, and the mean amount spent per transaction for each type of browser. Discuss the observations you can make about Heavenly Chocolates’ business based on the type of browser? Develop a scatter diagram, and compute the sample correlation coefficient to explore the relationship between the time spent on the web site and the dollar amount spent. Use the horizontal axis for the time spent on the web site. Discuss your findings. Develop a scatter diagram, and compute the sample correlation coefficient to explore the relationship between the number of web pages viewed and the amount spent. Use the horizontal axis for the number of web pages viewed. Discuss your findings. Develop a scatter diagram, and compute the sample correlation coefficient to explore the relationship between the time spent on the web site and the number of pages viewed. Use the horizontal axis to represent the number of pages viewed. Discuss your findings.FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Flashkick requires ending inventory of product to equal 20% of the next month's unit sales. Beginning inventory in january was 9,000 practice soccer balls and 1,260 match soccer balls. Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill air), and 3 ounces of glue. Flashkick's policy is that 20% of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January…
- Osborne Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: The data from the table are as follows: # of planters to be sold January: 3,400 February: 3,800 March: 3,300 April: 4,900 May: 4,600. Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month’s budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month’s production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements Prepare a production budget for each month in the first quarter of the year,…Sara is considering whether to open a gadgets shop. She provided you, as a consultant, the following information: Sales of $60,000 and $72,000 are expected for July and August, respectively. All goods are sold on account. The collection pattern for Accounts Receivable is 80 percent in the month of sale and 20 percent in the month following the sale. Purchases of $40,000 and $54,000 are expected for July and August. The payment pattern for purchases is 70 percent in the month of purchase, 30 percent in the month following the purchase. Other monthly expenses are $8,000, which includes $2000 of depreciation. All operating expenses are paid in the month of their incurrence. $2,000 of cash is available on August 1, 2021. Required: Prepare the cash collection budget for the two months ending August 31, 2021 Prepare the cash budget for the two months ending August 31, 2021Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data: • The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of gross wages earned. Required: C. Compute Al-Noor's total direct labor cost for January. D. Briefly explain how the company's purchasing activity would affect the end-of-period balance sheet.
- Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data: • The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of gross wages earned. Required: A. How many bicycles does Al-Noor expect to produce (i.e., assemble) in January? B. How many wheels are budgeted to be purchased in January?Sacco Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Sacco Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: Stuffed animals to be produced January. . . . 5,600 February. . . 4,800 March. . . . . 4,200 April. . . . . . 4,000 Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget.In September, a light business bought $3600 worth of bulbs. At the beginning of September, the store had $1400 in lights on hand, and by the end of September, it projected to have $1600 in lamps on hand to meet a few of the planned November sales. What is the September planned cost of goods sold? $6600 $3400 $3800 $5000
- Home Company will open a new store on January 1. Based on experience from its other retail outlets, Home Company is making the following sales projections:Cash SalesCredit SalesJanuary ...................$70,000$50,000February .................$40,000$60,000March .....................$50,000$70,000April .......................$50,000$90,000Home Company estimates that 80% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. IV. Based on these data, the balance in accounts receivable on January 31 will be:V. The March 31 balance in accounts receivable will be: VI. In a cash budget for the month of April, the total cash receipts will be:am Montana manufactures bookcases for colleges and universities to use in dorm rooms. Each bookcase sells for P65. Due to the cyclical nature of the business, the company budgets two months ahead. ln early May, it is planning for july, its busiest month, The company plans to sell 114,500 bookcases in july. At the end of june, it expects to have 26,000 assembled bookcases in inventory, and it would like to have 3,000 bookcases in inventory at the end of july. What is the company's budgeted sales revenue for july?The following events occur during September: Webworks purchases supplies worth $120 on account. At the beginning of September, Webworks had 19 keyboards costing $100 each and 110 flash drives costing $10 each. Webworks has decided to use perpetual FIFO to cost its inventory. On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each. Webworks starts and completes five more Web sites and bills clients for $3,000. Webworks pays Nancy $500 for her work during the first three weeks of September. Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash. Webworks collects $2,500 in accounts receivable. Webworks pays off its salaries payable from August. Webworks pays off $5,500 of its accounts payable. Webworks pays off $5,000 of its outstanding note payable. Webworks pays Leon salary of $2,000. Webworks pays taxes of $795 in cash. Required: Prepare journal entries for the above events. Post the journal entries to T-accounts.…