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MANAGERIAL ACCOUNTING 6

PART QUESTION

MANAGERIAL ACCOUNTING 6 PART QUESTION

MANAGERIAL ACCOUNTING 6 PART QUESTION

Screen Shot 2019-04-30 at 8.38.42 AM.png

Milo Company manufactures beach umbrellas . The company is preparing detailed budgets for the third quarter and has assembled the
Following information to assist in the budget preparation :`
. . The Marketing Department has Estimated sales as follows for the remainder of the year (in units ]*
JULY
$3, 090
October*
23, 000
ALIJUST
November*
5 , 500
SEPTEMBER $5, 090
DECEMBER*
10 , 000
The selling price of the beach umbrellas 15 $75 per unit .
D. All sales are on account . Based on past Experience , Sales are collected in the following pattern :`
But in the month of Bale*
$51 in the month following Bale
51 uncollectible
Sales for June totaled $375, 000
C. The company maintains finished goods inventories Equal to 15.36 Of the following month's sales . This requirement will be met at the
End of JUNE .\
`. Each beach umbrella requires 4 feet of Gilder , a material that is sometimes hard to acquire . Therefore , the company requires that
the Ending inventory of Gilden be Equal to 50% of the following month's production needs . The inventory of Gilden on hand at the
beginning and End of the quarter will be :`
JUNE 30
TH, YOU FEEL
SEPTEMBER 30
{ Feet
{ . Gilden costs $0. 50 per foot . One - half of a month's purchases of Gilden is paid for in the month of purchase ; the remainder is paid
for in the following month . The accounts payable on July 1 for purchases of Gilden during June will be $35, 390.
Required :`
1 . Calculate the Estimated sales , by month and in total , for the third quarter .*
2. Calculate the Expected cash collections , by month and in total , for the third quarter .
1 . Calculate the Estimated quantity of beach umbrellas that need to be produced in July . August , September , and October .
4. Calculate the quantity of Gilden Iin feet; that needs to be purchased by month and in total , for the third quarter .
5. Calculate the cost of the raw material ( Gildeny purchases by month and in total , for the third quarter .\
5 . Calculate the Expected cash disbursements for raw material ( Gilden ) purchases , by month and in total , for the third quarter .*

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