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

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related 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...

Subjects