OPERATING BUDGETS Annette Company produces a caliber used in the production of a
ID: 2589994 • Letter: O
Question
OPERATING BUDGETS
Annette Company produces a caliber used in the production of automobile transmissions. The caliber is sold to automobile manufactures and automobile engine manufacturers. The Sales Price is $240 per unit. The Budgeted (Expected) Sales In Units for the first four (4) months of the next year are as follow:
MONTH UNITS
JANUARY 30,000
FEBRUARY 40,000
MARCH 50,000
APRIL 60,000
Annette Company's policy is to have twenty percent (20%) of next month's Budgeted (Expected) Sales in Ending Finished Goods Inventory. In addition, each caliber requires four (4) pounds of metal materials (Direct Materials) which cost $12.50 per pound. Annette Company's policy is to have forty percent (40%) of next month's production needs in Ending Raw Materials (Direct Materials) Inventory.
Required
Prepare a monthly Operating Budget for the first quarter of next year for the following individual Budgets:
Sales Budget
Production Budget
Direct Materials Purchases Budget
INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED BELOW.
Annette Company
Sales Budget (Schedule 1)
For the Quarter Ended March 31
January
February
March
Total
Units
× Sales Price
x $
x $
x $
x $
Total Sales
$
$
$
$
Annette Company
Production Budget (Schedule 2)
For the Quarter Ended March 31
January
February
March
Total
Sales (Schedule 1)
Desired Ending Finished Inventory
Total Units Needed
Less: Beginning Finished Goods
Inventory
Units To Be Produced
Annette Company
Sales Budget (Schedule 1)
For the Quarter Ended March 31
January
February
March
Total
Units
× Sales Price
x $
x $
x $
x $
Total Sales
$
$
$
$
Annette Company
Production Budget (Schedule 2)
For the Quarter Ended March 31
January
February
March
Total
Sales (Schedule 1)
Desired Ending Finished Inventory
Total Units Needed
Less: Beginning Finished Goods
Inventory
Units To Be Produced
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Sales Budget Paticulars jan Feb Mar Total april Units 30,000.00 40,000.00 50,000.00 120,000.00 60,000.00 Sales price 240.00 240.00 240.00 240.00 Total sales 7,200,000.00 9,600,000.00 12,000,000.00 28,800,000.00 Production Budget Sales (Schedule 1) 30,000.00 40,000.00 50,000.00 120,000.00 60,000.00 Desired Ending Finished Inventory 8,000.00 10,000.00 12,000.00 12,000.00 Total Units Needed 38,000.00 50,000.00 62,000.00 132,000.00 Less: Beginning Finished Goods inventory 6,000.00 8,000.00 10,000.00 6,000.00 Units To Be Produced 32,000.00 42,000.00 52,000.00 126,000.00 Direct Materials Purchases Budget Units To Be Produced 32,000.00 42,000.00 52,000.00 126,000.00 pounds of materials required per unit 4.00 4.00 4.00 4.00 Total pounds required for production 128,000.00 168,000.00 208,000.00 504,000.00 Ending raw materials 67,200.00 83,200.00 Beginning raw materials 51,200.00 67,200.00 83,200.00 Total purchases 144,000.00 184,000.00 Cost per pound 12.50 12.50 Cost of purchases 1,800,000.00 2,300,000.00
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