Answer and Explanation:
1)
BUDGETED SELLING PRICE $ 70 *
BUDGETED UNITS IN JULY 22000
BUDGETED SALES $ 1,540,000
2)
SALES
CASH 40% $ 616,000
CREDIT 60 % OF PREVIOUS MONTH $ 382,200
RAW MATERIAL
RAW MATERIAL PURCHASES COST
40 % PAID NOW JULY $260900 $ 104,360
60 % PREVIOUS MONTH JUNE $ 159980 $ 95,988
LABOR
$12 PER HOUR * (24980 * 2)$ 599,520
VARIABLE EXPENSES $ 37,400
($1.70 * 22000)
FIXED EXPENSES $ 61,000
CASH INFLOW $ 99,932
3)
SALES IN JULY $ 1,540,000
60 % OUTSTANDING $ 924,000
4) 2980 UNITS SHOULD BE PRODUCED
JUNE JULY AUGUST SEP
SALES UNIT 9100 22000 24000 25000
CLOSING UNITS4400 4800 5000 -
20% OF NEXT MONTH SALE
OPENING UNITS - 1820 4400 4800
20% OF PREVIOUS MONTH SALE
FINISHED GOODS REQUIRED
13500 24980 24600 20200
SALES + CLOSING - OPENING
RAW MATERIAL REQUIRED
54000 99920 98400 80800
FINISHED GOODS REQUIRED * 4
CLOSING UNITS9992 9840 8080 -
10% OF NEXT MONTH NEEDS
OPENING UNITS - 5400 9992 9840
10% OF PREVIOUS MONTH NEEDS
RAW MATERIAL PURCHASES
63992 104360 96488 70960
