In: Accounting
Question 1 will be parts A, B, C, and D
A. Loyal Pet Company expects to sell 4,000 beefy dog treats in January and 6,000 in February for $4.00 each. What will be the total sales revenue reflected in the sales budget for those months?
A.January $1,500; February $1,000
B.January $1,000; February $1,500
C.January $24,000; February $16,000
D.January $16,000; February $ 24000
B. Hewitt Company expects cash sales for July of $11,000, and a 15% monthly increase during August and September. Credit sales of $7,000 in July should be followed by 33% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively? (Round final answers to the nearest dollar.)
A. $14,630 and $8,050
B. $14,548 and $12,382
C. $12,650 and $9,310
D. $9,565 and $5,263
C. Rubino Corporation desires a December 31 ending inventory of 1,000 units. Budgeted sales for December are 3,450 units. The November 30 inventory was 550 units. What are budgeted purchases in units?
A. 5,000
B. 3,000
C. 4,450
D.3,900
D.
Distribution Corporation collects 35% of a month's sales in the month of sale, 45% in the month following sale, and 20% in the second month following sale. Budgeted sales for the upcoming four months are:
April budgeted sales |
$60,000 |
May budgeted sales |
$130,000 |
June budgeted sales |
$220,000 |
July budgeted sales |
$200,000 |
The amount of cash that will be collected in July is budgeted to be
A. $70,000
B. $195,000
C.$125,000
D.$184,500
Part - A:
1.
Computation the value of total sales for January is:
Value of total sales for January = Number of units sold in January * Value of sales per unit
= 4,000 * $4
= $16,000
2.
Computation the value of total sales for February is:
Value of total sales for February = Number of units sold in February * Value of sales per unit
= 6,000 * $4
= $24,000
Hence, the value of total sales for January and February are $16,000 and $24,000 respectively, that is, the (D) option is correct.
Part - B:
1.
Computation the value of cash sales increased in September is:
Value of cash sales increased in September = Value of cash sales for July * (1 + Percentage increased in August) * (1 + Percentage increased in September)
= $11,000 * (1 + 0.15) * (1 + 0.15)
= $11,000 * 1.15 * 1.15
= $14,548
2.
Computation the value of credit sales increased in September is:
Value of credit sales increased in September = Value of credit sales for July * (1 + Percentage increased in August) * (1 + Percentage increased in September)
= $7,000 * (1 + 0.33) * (1 + 0.33)
= $7,000 * 1.33 * 1.33
= $12,382
Hence, the value of cash sales and credit sales in September are $14,548 and $12,382 respectively, that is, the (B) option is correct.
Part - C:
Computation of budgeted purchases in units is:
Budgeted purchases in units = Budgeted sales in units + Number of units at the end - Number of units at the beginning
= 3,450 units + 1,000 units - 550 units
= 3,900 units
Hence, the budgeted purchases in units is 3,900, that is, the (D) option is correct.
Part - D:
Computation the amount of cash collected in July is:
Amount of cash collected in July = (Sales value of May * Percentage of second following month) + (Sales value of June * Percentage of following month) + (Sales value of July * Percentage of same month)
= ($130,000 * 0.20) + ($220,000 * 0.45) + ($200,000 * 0.35)
= $26,000 + $99,000 + $70,000
= $195,000
Hence, the amount of cash collected in July is $195,000, that is, the (B) option is correct.