1.Traverse Co. desires a December 31 ending inventory of 2,867 units.

Budgeted sales for De

Answer:
Sales
Add: Ending
Less: Beginning

3909
2867
1919

Required

4857

Pratt Co. sells a biodegradable product and has predicted the following sales for the first fou
Ending inventory for each month should be 30% of the next month's sales, and the December
Answer:
sales
Add: Ending
Less: beginning

1870
660
561

Purchases

1969

Next year's sales forecast shows that 23,151 units of Product A and 11,780 units of Product B
respectively. The desired ending inventory of Product A is 20% higher than its beginning inven
2,664 units. The desired ending inventory of B is 2,974 units. What is the forecasted sales in
A

Total

Sales
Price

23151
13

11780
26

Sales

300963

306280

607243

Southern Company is preparing a cash budget for June. The company has $11,860 cash at the
and $35,128 in cash disbursements during June. Southern Company has an agreement with its
May 31, the company owes $51,366 to the bank. To maintain the $9,055 required balance, dur
Answer:
Beginning
Add: Receipts

11860
37956

Lss: Disbursements
Balance
Min balance
Repay

35128
14688
9055
5633

5. Lasher Company's budget includes the following credit sales for the current year: Septemb
December, $36,448. Experience has shown that payment for the credit sales is received as fo
sale, the remainder in the second month after sale. How much cash can Lasher Company expec
credit sales?

Answer:
Sakes
Cash
First
Second
Cash

34229
4449.77
14890.07
17801.52
37141.36

6.Kekaha's expects its September sales to be 20% higher than its August sales of $153,956.
$129,393 in September. All sales are on credit and are collected as follows: 33% in the month
Merchandise purchases are paid as follows: 16% in the month of purchase and the remainder i
September 1 is $7,621. What would the ending cash balance on September 30 be:
Answer:
Beginning
Add: collection
Collection
Less:

7621
103150.52
60966.576
78892.8
20702.88

Ending balance

72142.416

Budgets are established in advance to help organizations communicate their plans to employee
1
A direct labor budget is regarded as the starting point for the master budget.
0

Sales personnel who are paid a bonus for exceeding budgeted sales have an incentive to under

Budgeted sales for December are 3,909 units. The November 30 inventory was 1,919 units. What are Budgeted purc

sales for the first four months of the current year: Jan $1,636, Feb $1,870, Mar $2,200, and April $1,537
ales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?

1,780 units of Product B are going to be sold for prices of $13 and $26,
than its beginning inventory of 3,070 units. The beginning inventory of Product B is
the forecasted sales in dollars for next year?

has $11,860 cash at the beginning of June and anticipates $37,956 in cash receipts
an agreement with its bank to maintain a cash balance of at least $9,055. As of
5 required balance, during June how much will the company have to borrow or repay .

current year: September, $26,972; October, $31,681; November, $34,229;

t sales is received as follows: 13% in the month of sale, 47% in the first month after
Lasher Company expect to collect in November as a result of current and past

gust sales of $153,956. Purchases were $93,920 in August and are expected to be
lows: 33% in the month of the sale and the remaining in the following month.
ase and the remainder in the following month. The beginning cash balance on
ber 30 be:

their plans to employees and to help employees coordinate activities across the entire organizatio

ve an incentive to underestimate sales when establishing the sales budget.

nits. What are Budgeted purchases in units for December ?

200, and April $1,537

d be purchased in February?

rganizatio