Question

In: Accounting

Jennifer's Tiles sells a variety of tiles for multiple purposes. Actual sales for the month ended...

Jennifer's Tiles sells a variety of tiles for multiple purposes. Actual sales for the month ended June 30 was $90,000. Jennifer believes that sales will increase 2% in July and an additional 3% in August. Cash sales are expected to be 10% of sales and credit sales are 90% of sales.

Cost of goods sold is expected to be 75% of total sales. Jennifer does not want inventory to fall below $10,000 plus 5% of cost of goods sold for the next month. Sales of $95,000 are expected for September. Inventory on June 30 is $13,000.

Operating expenses include sales commission, 5% of sales; rent expense of $6,000; depreciation expense of $4,000; utility expense of $1,500; and insurance expense of $1,400.

Round figures to the nearest dollar.

Prepare the following budgets for July and August:

Sales budget

Inventory budget

purchases budget

cost of goods budget

Solutions

Expert Solution

The answer is attached in below picture,

If you have any doubt or the answer provided by me is not as per your required format, feel free to send me a comment before rating my answer, i will clarify your doubt.



Related Solutions

Amar Ltd furnishes the following information relating to budgeted sales and actual sales for the month...
Amar Ltd furnishes the following information relating to budgeted sales and actual sales for the month of March 2010. PRODUCT STANDARD UNITS STANDARD RATE (INR) ACTUAL UNITS ACTUAL RATE (INR) A 1200 15 880 18 B 800 20 880 20 C 2000 40 2640 38 calculate : (a) Sales price variance (b) Sales volume variance (c) Sales mix variance (d) Sales quantity variance
actual sales : 8500 unit variable cost actual $ 188.800 fixed cost actual $ 71.200 sales...
actual sales : 8500 unit variable cost actual $ 188.800 fixed cost actual $ 71.200 sales price $ 31,00 sales budget : 9000 unit. Variable cost standar perunit $ 21,8 Fixed cost budget $ 70.000 Questions 1. Static budget variances. 2. Sales activity variances. 3. Using a flexible budget at the actual activity level, calculate the contribution margin budget, the profit budget, and the flexible budget variant.
Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Actual Budget...
Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Actual Budget Over Budget Under Budget Factory wages $95,500 $82,000 $13,500 Materials 115,300 120,000 $(4,700) Power and light 49,950 45,000 4,950 Maintenance 37,200 28,000 9,200 $297,950 $275,000 $27,650 $(4,700) a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above. a. $ g. $ b. $ h. $ c. $ i. $ d. $ j. $ e. $...
Month Actual Sales Forecast Sales January 8 10 February 11 10 March 12 10 April 14...
Month Actual Sales Forecast Sales January 8 10 February 11 10 March 12 10 April 14 10 -Compute the RSFE, MAD and tracking signals for months January to April?
ABC Company Income Statement For the 12 month period ended 12/31/2016 Net Sales Cost of Sales...
ABC Company Income Statement For the 12 month period ended 12/31/2016 Net Sales Cost of Sales $            450,000 Gross Profit $            500,000 Operating Expenses: Depreciation $               75,000 Amortization $               25,000 Other Operating Expenses Total Operating Expenses $            400,000 Income From Operations Interest Expense Net Income Before Taxes $               80,000 Taxes- 30% Net Income EBITDA
QUESTION 4 A) A company sells product X & Y Sales for the year ended 2019...
QUESTION 4 A) A company sells product X & Y Sales for the year ended 2019 are: X: 5000 units @ ¢10 each Y: 3000 units @ ¢12 each The company expects to sell the following units in 2020: X: 6000 units @ ¢15 each Y: 4500 units @ ¢18 each Additional information: i) Budgeted opening stock: X: 1000 units Y: 800 units Budgeted closing stock: ​X: 2000 units ​Y: 1500 units ii) Materials A and B are used to...
Williams Company sells women’s hats for $12 each. Actual and budgeted sales in units for nine...
Williams Company sells women’s hats for $12 each. Actual and budgeted sales in units for nine months are as follows: January (actual) ……….. 25,000 June (budget) …………. 50,000 February (actual) ……… 26,000 July (budget) ………….. 30,000 March (actual) ………… 40,000 August (budget) ………. 28,000 April (budget) ………… 65,000 September (budget) …… 25,000 May (budget) …………. 100,000 The company should have sufficient inventory on hand at the end of each month to supply 40% of the hats sold in the following...
Month Estimate      Actual 1                      1100          
Month Estimate      Actual 1                      1100               1050 2                      1050               1200 3                      1200               950 4                      900                1170 5                      1170               1050 6                      1000               1050 1) What is the Mean Bias? 2) What is the Mean Absolute Ratio (MAR) at the end of period 6?
The general model for calculating a quantity variance is: Multiple Choice Actual price × (Actual quantity...
The general model for calculating a quantity variance is: Multiple Choice Actual price × (Actual quantity of inputs used − Standard quantity allowed for output). Standard price × (Actual quantity of inputs used − Standard quantity allowed for output). (Actual quantity of inputs used × Actual price) − (Standard quantity allowed for output × Standard price). Actual quantity of inputs used × (Actual price − Standard price). The following standards have been established for a raw material used to make...
Abacus Company sells its product for $240 per unit. Its actual and projected sales follow.   ...
Abacus Company sells its product for $240 per unit. Its actual and projected sales follow.    Units Dollars   April (actual) 7,000       $1,680,000      May (actual) 2,400       576,000      June (budgeted) 6,000       1,440,000      July (budgeted) 6,000       1,440,000      August (budgeted) 3,800       912,000    All sales are on credit. Recent experience shows that 22% of credit sales is collected in the month of the sale, 48% in the month after the sale, 26% in the second...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT