Party Time Inc. needs your help to create some of its budgets for the year. All
ID: 2526315 • Letter: P
Question
Party Time Inc. needs your help to create some of its budgets for the year. All of the firm’s party favor boxes include 6 gold coins, regardless of the party box’s “theme.” Its sales budget for its all of its various party favor boxes combined is as follows:
Party Time Inc. maintains ending finished goods inventory equal to 8% of the budgeted sales for the next quarter. At the end of the year, Party Time Inc. would like to have 750 finished boxes in its warehouse. In addition, Party Time Inc. maintains enough gold coins on hand to start each quarter with 5% of the current quarter’s production needs. The firm wants to end Q4 of the coming year with 3,200 coins on hand.
5) Complete the Production Budget for Party Time Inc. Show your work!
Q1
Q2
Q3
Q4
Year Total
Budgeted unit sales
Ending finished goods
Beginning finished goods
Budgeted Production in Units
6) Refer to prior page information. Complete Party Time Inc.’s Raw Materials Purchases Budget for Gold Coins. (As shown on the Given Info. Sheet, each gold coin costs the firm $0.08 to purchase.) Show your work!
Q1
Q2
Q3
Q4
Year Total
Budget production
11,434
12,805
14,388
13,670
52,297
Materials requirements
Raw materials needed
Ending Raw materials
Beginning Raw materials
Total purchases
Cost of raw materials
Budgeted Cost of RM Purchases
Q1
Q2
Q3
Q4
Year Total
Budgeted unit sales
Ending finished goods
Beginning finished goods
Budgeted Production in Units
Party Time Inc. Sales Budget For the Year Ended Dec. 31, 2018 (weddings!) Christmas!) Q2 03 01 11,000 04 Yearly Total 13,600 12,300 Budgeted unit sales Budgeted sales price Budgeted sales revenue60,50067,650 14,000 50,900 50 $5.50 5.50 $5.50 $5.50 77,00 74.800 $ 279,950Explanation / Answer
5.
Q1
Q2
Q3
Q4
Year Total
Budgeted unit sales
11,000
12,300
14,000
13,600
50,900
Ending finished goods
984 (12,300*8%)
1,120 (14,000*8%)
1,088 (13,600*8%)
750
750
Beginning finished goods
880 (11,000*8%)
984
1,120
1,088
(880)
Budgeted Production in Units
11,104
12,436
13,968
13,262
50,770
6.
Q1
Q2
Q3
Q4
Year Total
Budget production
11,434
12,805
14,388
13,670
52,297
Materials requirements
6
6
6
6
6
Raw materials needed
68,604
76,830
86,328
82,020
313,782
Ending Raw materials
3,842 (76,830*5%)
4,316 (86,328*5%)
4,101 (82,020*5%)
3,200
3,200
Beginning Raw materials
(3,430) (68,604*5%)
(3,842)
(4,316)
(4,101)
(3,430)
Total purchases
69,016
77,304
86,113
81,119
313,552
Cost of raw materials
0.08
0.08
0.08
0.08
0.08
Budgeted Cost of RM Purchases
5,521.28
6,184.32
6,889.04
6,489.52
25,084.16
* Ending and Beginning raw materials needed rounded off to the nearest unit.
Q1
Q2
Q3
Q4
Year Total
Budgeted unit sales
11,000
12,300
14,000
13,600
50,900
Ending finished goods
984 (12,300*8%)
1,120 (14,000*8%)
1,088 (13,600*8%)
750
750
Beginning finished goods
880 (11,000*8%)
984
1,120
1,088
(880)
Budgeted Production in Units
11,104
12,436
13,968
13,262
50,770