Check my work Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 9,700, 10,700, 12,700, and 15,700 units, respectively. All sales are on credit. b. 60% of credit sales are collected in the month of the sale and 40% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram e. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $63,500. Required: 62,400 kg of raw materials are needed for production in August, the cost of raw materials purchases in June is $90,280, what are e estimated cash disbursements for raw materials purchases in July? otal cash disbursements
Check my work Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 9,700, 10,700, 12,700, and 15,700 units, respectively. All sales are on credit. b. 60% of credit sales are collected in the month of the sale and 40% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram e. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $63,500. Required: 62,400 kg of raw materials are needed for production in August, the cost of raw materials purchases in June is $90,280, what are e estimated cash disbursements for raw materials purchases in July? otal cash disbursements
Chapter7: Budgeting
Section: Chapter Questions
Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Check my work
Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of
operations:
a. The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 9,700, 10,700, 12,700, and
15,700 units, respectively. All sales are on credit.
b. 60% of credit sales are collected in the month of the sale and 40% in the following month.
c. The ending finished goods inventory equals 20% of the following month's unit sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished
goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram.
e. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month.
f. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours.
g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is
$63,500.
Required:
If 62,400 kg of raw materials are needed for production in August, the cost of raw materials purchases in June is $90,280, what are
the estimated cash disbursements for raw materials purchases in July?
Total cash disbursements
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