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Accounting Essay

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Below is an essay on "Accounting" from Anti Essays, your source for research papers, essays, and term paper examples.

208) Spirit Company sells three products with the following seasonal sales pattern:

Products
Quarter A B C
1 40% 30% 10%
2 30% 20% 40%
3 20% 20% 40%
4 10% 30% 10%

The annual sales budget shows forecasts for the different products and their expected selling price per unit as follows:

Product Units Selling Price
A 50,000 $ 4
B 125,000 10
C 62,500 6

Required:

Prepare a sales budget, in units and dollars, by quarters for the company for the coming year.

Answer:   First Second Third Fourth
Quarter Quarter Quarter Quarter Total

Product A:
Sales (units) 20,000 15,000 10,000 5,000 50,000
Price × $4 × $4 × $4 × $4 × $4

Sales $80,000 $60,000 $40,000 $20,000 $200,000

Product B:
Sales (units) 37,500 25,000 25,000 37,500 125,000
Price × $10 × $10 × $10 × $10 × $10

Sales $375,000 $250,000 $250,000 $375,000 $1,250,000

Product C:
Sales (units) 6,250 25,000 25,000 6,250 62,500
Price × $6 × $6 × $6 × $6 × $6

Sales $37,500 $150,000 $150,000 $37,500 $375,000

Total $492,500 $460,000 $440,000 $432,500 $1,825,000
Diff: 2
Terms:   operating budget
Objective:   3
AACSB:   Analytical skills
209) Lubriderm Corporation has the following budgeted sales for the next six-month period:

Month Unit Sales
June 90,000
July 120,000
August 210,000
September 150,000
October 180,000
November 120,000

There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month.

Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds.

Required:
a. Prepare production budgets in units for July, August, and September.
b. Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars...

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Accounting. Anti Essays. Retrieved June 19, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Accounting-86704.html