P9-59A Comprehensive summary problem ( Learning Objective 2 & 3) Birdfeeders Uml

Question

P9-59A Comprehensive summary problem ( Learning Objective 2 & 3)
Birdfeeders Umlimited makes backyard bird

P9-59A Comprehensive summary problem (Learning Objectives 2 &3) Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $15 per birdfeeder. Each birdfeeder requires 1.5 board feet of wood, which the company obtains at a cost of $4 per board foot. The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdfeeders equal to 20% of the next month's sales. Sales data for the company is as follows: Sales data for the company is as follo Units October actual sales (prior year) 92,000 November actual sales (prior year) 85,000 December actual sales (prior year) 78,000 January projected sales 80,000 February projected sales 90,000 March projected sales 95,000 April projected sales 105,000

Explanation / Answer

As per policy, only four parts of a question are allowed to answer, so answering four parts :

1) Sales budget: jan feb mar Total sales 80000 90000 95000 Cash sales 16000 18000 19000 Credit sales 64000 72000 76000 2)Production budget: Total sales 80000 90000 95000 Closing stock 18000 19000 21000 Total Reqd 98000 109000 116000 less: open stock 16000 18000 19000 Production reqd 82000 91000 97000 3)DM purchases budget: Production reqd 82000 91000 97000 Rm required 123000 136500 145500 add: closing stock 13650 14550 12000 Total required 136650 151050 157500 Less: open stock 12300 13650 14550 RM purchased 124350 137400 142950 RM purchase cost $ 497400 549600 571800 4)cash collection budget: Jan Feb Mar oct 4416 Nov 6800 4080 dec 49920 6240 3744 jan 51200 6400 feb 57600 Total 61136 61520 67744

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