Question
In: Accounting
Dax Company forecasts the following sales in units for the next three months: May 50,000 June ...
Dax Company forecasts the following sales in units for the next three months:
May 50,000
June 60,000
July 45,000
Each unit sells for $15.00 and costs $11.00 to purchase. Dax Company needs to have 40% of the next month’s sales in inventory at the end of each month and pays cash for 30% of purchases. The remainder of the purchases are paid for in the month following the purchase. The balance of Accounts Payable at the end of April is $375,000 and Dax has 16,000 units on hand.
Required:
1. Prepare a purchases budget in units for May and June.
2. Prepare a cash disbursements budget for purchases for May and June.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The Boswell Corporation forecasts its sales in units for the next four months as follows: March...
The Boswell Corporation forecasts its sales in units for the
next four months as follows:
March
16,000
April
18,000
May
15,500
June
14,000
Boswell maintains an ending inventory for each month in the
amount of three times the expected sales in the following month.
The ending inventory for February (March's beginning inventory)
reflects this policy. Materials cost $8 per unit and are paid for
in the month after production. Labour cost is $12 per unit and is
paid for in...
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March...
Wright Lighting
Fixtures forecasts its sales in units for the next four months as
follows:
March
25,000
April
27,000
May
24,500
June
23,000
Wright maintains an
ending inventory for each month in the amount of two and one-half
times the expected sales in the following month. The ending
inventory for February (March’s beginning inventory) reflects this
policy. Materials cost $7 per unit and are paid for in the month
after production. Labor cost is $11 per unit and is paid...
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March...
Wright Lighting Fixtures forecasts its sales in units for the
next four months as follows:
March
7,000
April
9,000
May
6,500
June
5,000
Wright maintains an ending inventory for each month in the
amount of one times the expected sales in the following month. The
ending inventory for February (March’s beginning inventory)
reflects this policy. Materials cost $4 per unit and are paid for
in the month after production. Labor cost is $8 per unit and is
paid for in...
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March...
Wright Lighting Fixtures forecasts its sales in units for the
next four months as follows:
March
17,000
April
19,000
May
16,500
June
15,000
Wright maintains an ending inventory for each month in the
amount of one times the expected sales in the following month. The
ending inventory for February (March’s beginning inventory)
reflects this policy. Materials cost $4 per unit and are paid for
in the month after production. Labor cost is $8 per unit and is
paid for in...
Ruiz Co. provides the following sales forecast for the next four months: April May June...
Ruiz Co. provides the following sales forecast for the next four
months:
April
May
June
July
Sales (units)
690
770
720
810
The company wants to end each month with ending finished goods
inventory equal to 30% of next month's forecasted sales. Finished
goods inventory on April 1 is 207 units. Assume July's budgeted
production is 720 units. In addition, each finished unit requires
five pounds (lbs.) of raw materials and the company wants to end
each month with...
Ruiz Co. provides the following sales forecast for the next four months: April May June...
Ruiz Co. provides the following sales forecast for the next four
months:
April
May
June
July
Sales (units)
690
770
720
810
The company wants to end each month with ending finished goods
inventory equal to 40% of next month's forecasted sales. Finished
goods inventory on April 1 is 276 units. Assume July's budgeted
production is 720 units. In addition, each finished unit requires
five pounds (lbs.) of raw materials and the company wants to end
each month with...
Ruiz Co. provides the following sales forecast for the next four months: April May June...
Ruiz Co. provides the following sales forecast for the next four
months:
April
May
June
July
Sales (units)
620
700
650
740
The company wants to end each month with ending finished goods
inventory equal to 40% of next month's forecasted sales. Finished
goods inventory on April 1 is 248 units. Assume July's budgeted
production is 650 units. In addition, each finished unit requires
five pounds (lbs.) of raw materials and the company wants to end
each month with...
Ruiz Co. provides the following sales forecast for the next four months: April May June July...
Ruiz Co. provides the following sales forecast for the next four
months: April May June July Sales (units) 680 760 710 800 The
company wants to end each month with ending finished goods
inventory equal to 20% of next month's forecasted sales. Finished
goods inventory on April 1 is 136 units. Assume July's budgeted
production is 710 units. In addition, each finished unit requires
four pounds (lbs.) of raw materials and the company wants to end
each month with raw...
Ruiz Co. provides the following sales forecast for the next four months: April May June July...
Ruiz Co. provides the following sales forecast for the next four
months:
April
May
June
July
Sales (units)
570
650
600
690
The company wants to end each month with ending finished goods
inventory equal to 30% of next month's forecasted sales. Finished
goods inventory on April 1 is 171 units. Assume July's budgeted
production is 600 units. In addition, each finished unit requires
four pounds (lbs.) of raw materials and the company wants to end
each month with raw...
1. Ruiz Co. provides the following sales forecast for the next four months. April May June...
1.
Ruiz Co. provides the following sales forecast for the next four
months.
April
May
June
July
Sales (units)
600
680
630
720
The company wants to end each month with ending finished goods
inventory equal to 30% of next month's forecasted sales. Finished
goods inventory on April 1 is 180 units.
Prepare a production budget for the months of April, May, and
June.
2.
Zira Co. reports the following production budget for the next
four months.
April
May
June...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
ADVERTISEMENT