CHAPTER 7 - Class Problem

CHAPTER 7 - Class Problem - CHAPTER7...

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CHAPTER 7 COMPREHENSIVE BUDGETING EXAMPLE Royal Company is preparing budgets for the 2nd quarter, which ends on  June 30.  Budgeted sales of the company’s only product for the next five months  are: April. ...... 20,000 units May. ...... 50,000 units June. ..... 30,000 units July. ....... 25,000 units August. .. 15,000 units The selling price is $10 per unit. The following elements of the master budget will be prepared in this  example: 1. Sales budget (with a schedule of expected cash collections). 2. Production budget. 3. Direct materials budget (with a schedule of expected cash  disbursements for materials). 4. Direct labor budget. 5. Manufacturing overhead budget. 6. Ending finished goods inventory budget. 7. Selling and administrative expense budget. 8. Cash budget. SALES BUDGET 1
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SCHEDULE OF EXPECTED CASH COLLECTIONS Additional data: All sales are on account. The company collects 70% of these credit sales in the month of the 
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This note was uploaded on 06/05/2010 for the course ACC Acc208 taught by Professor Acc208 during the Fall '09 term at Cal Poly Pomona.

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CHAPTER 7 - Class Problem - CHAPTER7...

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