Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets
ID: 2598336 • Letter: P
Question
Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] 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: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units) 36,500 October 26,500 July August 83,000 November 13,000 September 52,000 December 13,500 The selling price of the beach umbrellas is $10 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $320,000.Explanation / Answer
1.
Explanation: budgeted sales = units sold *$10. For example for September budgeted sales = 52,000 units * $10 = $520,000
2.
Thus the answer for "2" -
3.
Hence the answer is:
4 and 5:
Thus answer for 4 &5:
6.
Thus the answer is:
July August September Quarter Budgeted sales 365,000.00 830,000.00 520,000.00 1,715,000.00