Practice Problems 3 - Chapter 6: a) Sylvan Company sells...

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Chapter 6: a) Sylvan Company sells three products with the following seasonal sales pattern: Products Quarter A B C 1 40% 30% 10% 2 30% 20% 40% 3 20% 20% 40% 4 10% 30% 10% The annual sales budget shows forecasts for different products and their expected selling price per unit as follows: Products Units Selling Price A 50,00 0 $4 B 125,00 0 $10 C 62,50 0 $6 Required: Prepare a sales budget, in units and dollars, by quarters for the company for the coming year. 1st 2nd 3rd 4th Total Product A: Sales(units) 20,00 0 15,00 0 10,00 0 5,00 0 50,00 0 Price $4 $4 $4 $4 Sales $ 80,00 0 60,00 0 40,00 0 20,00 0 200,00 0 Product B: Sales(units) 37,50 0 25,00 0 25,00 0 37,50 0 125,00 0 Price $10 $10 $10 $10 Sales $ 375,00 0 250,00 0 250,00 0 375,00 0 1,250,00 0 Product C: Sales(units) 6,25 0 25,00 0 25,00 0 6,25 0 62,50 0 Price $6 $6 $6 $6 Sales $ 37,50 0 150,00 0 150,00 0 37,50 0 375,00 0
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Total 492,50 0 460,00 0 440,00 0 432,50 0 1,825,00 0 2) Star Athletics Company expects to sell 30,000 uniforms for $80 each in 2009. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2008: Beginning Inventory Ending Inventory Direct materials 12000 units 9000 units Work in process inventory 0 units 0 units Finished goods inventory 6,000 units 5,000 units Required: a) Calculate the number of units that need to be produced in 2009. $30,000 + 5,000 – 6,000 = 29,000 uniforms b) What is the amount budgeted for direct material purchases in 2009? (30,000 + 5,000 – 6,000) units + 9,000 units – 12,000 units = 26,000 units to purchase * $20 = $520,000 c) Calculate the amount budgeted for cost of goods manufactured in 2009. (30,000 + 5,000 – 6,000) * $20 + $8 +$6) = $986,000 d) Calculate the amount budgeted for cost of goods sold in 2009. 30,000 * ($20 + $8 + $6) = $1,020,000 3) Acorn Company has requested a cash budget for July and August. The following information has been gathered: a. Cash balance as of July 1: $35,000 b. Actual and forecasted sales are as follows: May June July August Cash sales 25,00 0 30,00 0 40,00 0 50,00 0 Credit sales 60,00 0 80,00 0 100,00 0 110,00 0 Total 85,000 110,000 140,000 160,000
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c. Credit sales are collected 40% in the month of the sale, 35% in the month following the sale, and 25% in the second month following the sale. Required:
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Practice Problems 3 - Chapter 6: a) Sylvan Company sells...

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