Master budgeting.docx - 1.c(a Sales Budget April May June...

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1.c. (a) Sales Budget April May June Total Budgeted Sales - units 65000 100000 50000 215000 Selling Price per unit 10 10 10 10 Budgeted Sales 650000 1000000 500000 2150000 (b) Schedule of cash receipts April May June Total Credit Sales February sales 26000 26000 March Sales 280000 40000 320000 April Sales 130000 455000 65000 650000 May Sales 200000 700000 900000 June Sales 100000 100000 Total Collections 436000 695000 865000 1996000 Receivables 560000 865000 500000 500000
(c) Inventory Purchase Budget April May June Total Budgeted sales units 65000 100000 50000 215000 Add: Desired ending inventory 40000 20000 12000 12000 (40% of next month's cost) Total goods neded 105000 120000 62000 227000 Less: Beginning inventory 26000 40000 20000 26000 Budgeted purchase units 79000 80000 42000 201000 Cost per unit of inventory 4 4 4 4 Total cost of purchases 316000 320000 168000 804000 (d) Cash payment budget for purchases April May June Total Budgeted Purchases 316000 320000 168000 804000 Payments: March purchases 100000 100000 April purchases 158000 158000 316000 May purchases 160000 160000 320000 June purchases 84000 84000 Total payments 258000 318000 244000 820000 Accounts Payable 158000 160000 84000 84000 (e) Operating expenses budget April May June Total
Sales commission(4% of sales) 26000 40000 20000 86000 Advertising expense 200000 200000 200000 600000 Rent expense 18000 18000 18000 54000 Salaries expense 106000 106000 106000 318000

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