case03budgetingcasesolutionsp08

case03budgetingcasesolutionsp08 - ACC221 Cost Accounting...

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ACC221 Cost Accounting Budgeting Case Due: April 24, 2008 Requirement 1: Prepare a sales budget by month and in total. Wheaton Industries, Inc. Sales Budget For the Quarter Ended September 30 July August September Budgeted sales in bottles 260,000 400,000 200,000 Selling price per bottle 20 20 20 Total Sales 5,200,000 8,000,000 4,000,000 Requirement 2: Prepare a schedule of expected cash collections from sales, by month and Wheaton Industries, Inc. Schedule of Expected Cash Collections For the Quarter Ended September 30 July August September May Sales (104,000 necklaces * $20 * 15%) 312,000 June Sales(160,000 necklaces * $20 * 60%) 1,920,000 June Sales(160,000 necklaces * $20 * 15%) 480,000 July Sales ($5,200,000 * 25%) 1,300,000 July Sales ($5,200,000 * 60%) 3,120,000 July Sales ($5,200,000 *15%) 780,000 August Sales ($8,000,000 * 25%) 2,000,000 August Sales ($8,000,000 * 60 %) 4,800,000 September Sales ($4,000,000 * 25%) 1,000,000 Total 3,532,000 5,600,000 6,580,000 Requirement 3: Prepare a merchandise purchases budget in units and in dollars. Show th by month and in total. Wheaton Industries, Inc. Merchandise Purchases Budget For the Quarter Ended September 30 July August September Budgeted Sales in bottles 260,000 400,000 200,000 + Desired Ending Merchandise Inventory 160,000 80,000 48,000 Total needs 420,000 480,000 248,000 Less: Beginning merchandise Inventory 52,000
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case03budgetingcasesolutionsp08 - ACC221 Cost Accounting...

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