cw511772_budgeting handout

cw511772_budgeting handout - SALES BUDGET A~ril b!W . June...

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SALES BUDGET A~ril b!W . June Quarter Budgeted sales (units) 20,000 50,000 30,000 100,000 Selling price per unit X $10 X X - X Budgeted sales (dollars) $200.000 $500,000 $300.000 $1 000,000 SCHEDULE OF EXPECTED CASH COLLECTIONS All sales are on account. The company's collection pattern is:= collected in the month of sale; - 25% in the month following . - n i e g-5%ianmllect i bI'd-l~acccu&s~-~ ble balance on March 31 was $30,000 and all of this was collectible. A ~ril !w June Accounts receivable: . .................. March $.30,000 @ .. April sales: ....... 70% X $200,000 140,000 - X - $50,000 May sales: X $500,000 . 350,000 X 25,000 125,000 June sales: -" :76%- x $~OO;OOO ..,. 21 0.000 21 hooo . Total cash collection. $170,000 $400.000 $335,000 $905.000
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flo O PRODUCTION BUDGET The company desires to have inventory on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31,4,000 units were on hand. . April !@w June Sales in units UM 9-41 ....... Add desired ending inventory ........................ 10.000 3.000' , Total needs ......................... 30,000 Less beginning ..... - Production in units ............ - - Budgeted sales in Desired ending inventory in July = 15,000 X 20% = 3,000 b . .
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MATERIAL PURCHASES BUDGET Five pounds of material are required per unit of product. The
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This note was uploaded on 06/16/2010 for the course MS&E 240 taught by Professor Vicstanton during the Winter '08 term at Stanford.

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cw511772_budgeting handout - SALES BUDGET A~ril b!W . June...

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