Exercise D513 Marigold Auto has developed the following prod

Exercise D5-13 Marigold Auto has developed the following production plan for its new auto part. January February March April 10,680 Budgeted production (units) 8,910 9,850 14,070 Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 128% of the next month\'s production needs, plus an additional 565 pounds. January\'s beginning inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to O decimal places, e.g. 5,275.) January February March Quarter Exercise D5-21 In the coming year, Marigold, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $18 to retailers throughout the country. All sales will be made on account. An expected 66% of sales will be collected within the quarter of the sale, and another 29 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows 1st Quarter 25,800 2nd Quarter 44,100 3rd Quarter 50,100 4th Quarter 86,100 Budgeted sales units Prepare Marigold, Inc.\'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price Budgeted sales revenue s Cash Receipts Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter Bad Debts 1st quarter sales 2nd quarter sales 3rd quarter sales 4th quarter sales Totals Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year, Net Accounts Receivable $

Solution

D5-13]    Direct material purchase budget

3

3

3

10680*128% + 565

= 14235

92660

Note:- Ending Direct material

   Jan= 128% * 8910 + 565 =11970

   Feb= 128% * 9850 + 565 =13173

mar = 128% * 14070 + 565 = 18575

	January	February	March	Quarter
Production in units	10680	8910	9850	29440
Direct material required per unit	3	3	3
Direct material required of productions	32040	26730	29550	88320
Add: Ending budgeted Direct material	11970	13173	18575	18575
	44010	39903	48125	106895
less: Beginning budgeted Direct material	10680*128% + 565 = 14235	11970	13173	14235
Direct material purchase	29775	27933	34952	92660