Question

In: Accounting

Carter's BBQ Restaurant produces BBQ sauce for resale at grocery stores throughout North America. The company...

Carter's BBQ Restaurant produces BBQ sauce for resale at grocery stores throughout North America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows (1 unit = 1 batch):

First quarter
67,200 units
Second quarter
80,640 units
Third quarter
100,800 units
Fourth quarter
87,360 units
Unit sales are expected to increase 25%, and each unit is expected to sell for $8. The management prefers to maintain ending finished goods inventory equal to 10% of next quarter's sales. Assume that finished goods inventory at the end of the fourth quarter budget period is estimated to be 9,000 units.

Using Excel prepare a sales budget for Carter's BBQ Restaurant using a format similar to Figure 9.3, "Sales Budget for Jerry's Ice Cream." (Hint: Be sure to increase last year's unit sales by 25%.)
Using Excel prepare a production budget for Carter's BBQ Restaurant using the format shown in Figure 9.4, "Production Budget for Jerry's Ice Cream."

Solutions

Expert Solution

Sales Budget
Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
Sales units                    67,200                   80,640                       1,00,800                  87,360                3,36,000
Add. Increase (25%)                    16,800                   20,160                          25,200                  21,840                    84,000
Projected sales in Units                    84,000               1,00,800                       1,26,000              1,09,200                4,20,000
Sales price per unit $                    8.00 $                   8.00 $                          8.00 $                  8.00
Sales amount $             6,72,000 $            8,06,400 $                 10,08,000 $           8,73,600 $ 3360000
Production Budget
Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
Sales units                    84,000               1,00,800                       1,26,000              1,09,200                4,20,000
Add : Closing Stock Required (10% of next quarter sales)                    10,080                   12,600                          10,920 9000
Total Goods Required                    94,080               1,13,400                       1,36,920              1,18,200                4,62,600
Less : Opening Stock
(For Quarter 1 - considered 10% of estimated sales)		                      8,400                   10,080                          12,600                  10,920
Production Required (units)                    85,680               1,03,320                       1,24,320              1,07,280                4,20,600

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Jake’s cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use...
Jake’s cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use 0.50 direct labor hours to produce one unit (batch) of product, and the variable overhead rate is $5.00 per hour. Actual results are in for last year, which indicates 45,000 batches of cheese were produced and sold. The company's direct labor workforce worked 27,500 hours, and variable overhead costs totaled $144,000. Required: (1) Calculate the variable overhead spending variance. (2) Calculate the variable overhead...
Jake’s Cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use...
Jake’s Cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 batches of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound and used 145,000 pounds in production. (13 Points) Required: (1)       Calculate the materials price variance.     (2)       Calculate the materials quantity variance.           ...
Jake’s cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use...
Jake’s cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use 0.50 direct labor hours to produce one unit (batch) of product, and the variable overhead rate is $5.00 per hour. Actual results are in for last year, which indicates 45,000 batches of cheese were produced and sold. The company's direct labor workforce worked 27,500 hours, and variable overhead costs totaled $144,000. Required: (1)       Calculate the variable overhead spending variance.      (2)       Calculate the variable overhead efficiency variance.    ...
54) Marquise Jewelers is a national chain of value jewelry stores with locations throughout North America....
54) Marquise Jewelers is a national chain of value jewelry stores with locations throughout North America. "Luxury service at affordable prices" is the crux of Marquise's business model, and executive management is always looking for ways to ensure that the high standards in this area are maintained. Recently, several of their stores in New England have had an uptick in customer service complaints, and they received an average Yelp rating of three stars, down from four stars during the last...
These information presented at North Company throughout 2017:  Jan. 1 Bank of America agree to...
These information presented at North Company throughout 2017:  Jan. 1 Bank of America agree to lend North Co. $41,000 and carry a 9% interest rate for one year maturing on January 1, 2018.  Jan. 2 North Co. accepted a 4-month, 8% note from Panda Company in payment of Panda’s $1,200 account.  Jan. 3 North Co. wrote off as uncollectible the accounts of Wooden Corporation ($450) and Zajel Company ($280).  Jan. 11 North Co. sold for $28,000...
SportsCards Inc. manufactures baseball cards sold in packs of 10 in drugstores and grocery stores throughout...
SportsCards Inc. manufactures baseball cards sold in packs of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an industry with four major firms. SportsCards has been approached by Zip Cereal Inc., which would like to order a special edition of cards to use as a promotion with its new cereal. SportsCards would be solely responsible for designing and producing the cards. Zip wants to order 30,000 sets and has offered $25,500 for...
IMC Corporation operates throughout North America and recently expanded operations, opening a small subsidiary in London,...
IMC Corporation operates throughout North America and recently expanded operations, opening a small subsidiary in London, England. In your post, address the following question: Why is foreign currency translation important to IMC Corporation and other financial statement users? Provide examples.
Merchandise Mavens Corporation sells goods throughout North America. One of its product lines has recently reported...
Merchandise Mavens Corporation sells goods throughout North America. One of its product lines has recently reported the following information to you at head office. Based on this information, you have become concerned that the company is experiencing difficulties selling the product. 2015 2014 2013   Cost of Goods Sold $ 388,000 $ 371,000 $ 347,000   Gross Sales 426,000 426,000 426,000   Inventories 49,000 32,000 27,000   Sales Returns and Allowances 16,500 3,300 5,000 Required: An analysis of the financial information to identify three...
Bikes LLC is a company that manufactures and sells motorcycles in North America. It has the...
Bikes LLC is a company that manufactures and sells motorcycles in North America. It has the following demand function for its motorcycles: P = 30,000 – 100Q Bikes LLC has a marginal cost (MC) that is constant and equal to $4,000. What will Bikes LLC’s price be if it decides to sell the motorcycles by itself? What will the price be if it sells them though MC Dealership, LLC an independent distributor? Consider that when Bikes LLC contracts with MC...
Motorcycles USA is a company that manufactures and sells motorcycles in North America. It has the...
Motorcycles USA is a company that manufactures and sells motorcycles in North America. It has the following demand function for its motorcycles: P = 30,000 – 100Q Motorcycles USA has a marginal cost (MC) that is constant and equal to $4,000. What will Motorcycles USA’s price be if it decides to sell the motorcycles by itself? What will the price be if it sells them though MC Dealership, LLC an independent distributor? (10 points) Consider that when Motorcycles USA contracts...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT