Question

MANAGERIAL ACCOUNTING 6

PART QUESTION

MANAGERIAL ACCOUNTING 6 PART QUESTION

MANAGERIAL ACCOUNTING 6 PART QUESTION

Milo Company manufactures beach umbrellas . The company is preparing detailed budgets for the third quarter and has assembled the

Following information to assist in the budget preparation :`

. . The Marketing Department has Estimated sales as follows for the remainder of the year (in units ]*

JULY

$3, 090

October*

23, 000

ALIJUST

November*

5 , 500

SEPTEMBER $5, 090

DECEMBER*

10 , 000

The selling price of the beach umbrellas 15 $75 per unit .

D. All sales are on account . Based on past Experience , Sales are collected in the following pattern :`

But in the month of Bale*

$51 in the month following Bale

51 uncollectible

Sales for June totaled $375, 000

C. The company maintains finished goods inventories Equal to 15.36 Of the following month’s sales . This requirement will be met at the

End of JUNE .\

`. Each beach umbrella requires 4 feet of Gilder , a material that is sometimes hard to acquire . Therefore , the company requires that

the Ending inventory of Gilden be Equal to 50% of the following month’s production needs . The inventory of Gilden on hand at the

beginning and End of the quarter will be :`

JUNE 30

TH, YOU FEEL

SEPTEMBER 30

{ Feet

{ . Gilden costs $0. 50 per foot . One – half of a month’s purchases of Gilden is paid for in the month of purchase ; the remainder is paid

for in the following month . The accounts payable on July 1 for purchases of Gilden during June will be $35, 390.

Required :`

1 . Calculate the Estimated sales , by month and in total , for the third quarter .*

2. Calculate the Expected cash collections , by month and in total , for the third quarter .

1 . Calculate the Estimated quantity of beach umbrellas that need to be produced in July . August , September , and October .

4. Calculate the quantity of Gilden Iin feet; that needs to be purchased by month and in total , for the third quarter .

5. Calculate the cost of the raw material ( Gildeny purchases by month and in total , for the third quarter .\

5 . Calculate the Expected cash disbursements for raw material ( Gilden ) purchases , by month and in total , for the third quarter .*

Managerial Accounting