Question

In: Accounting

The Bear Corporation will begin business operations on January 1, 2020. Below is the anticipated SALES...

The Bear Corporation will begin business operations on January 1, 2020. Below is the anticipated SALES BUDGET (in units):

Jan. 30,000

Feb. 60,000

Mar. 70,000

Apr. 70,000

May 80,000

ADDITIONAL INFORMATION

a. Ending finished goods inventory should be equal to 10% of next month's sales projection.

b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound.

c: Labor cost is $10 per unit produced.

d. Ending raw material inventory should be equal to 20% of next month's material requirement.

e. Factory overhead is $18,000 per month of which $8,000 is for depreciation.

f. All costs are paid in the month incurred except for purchases which is paid in the following month.

g. The selling price per unit is $100.

REQUIRED: Using Excel, in good form:

Prepare a SALES BUDGET for the first quarter (January through March).
Prepare a PRODUCTION BUDGET for the first quarter (January through March).

Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.)

Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).

Expert Solution

ekkarill92 answered 1 year ago

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