Accounting

Assignment Print View 11/6/12 11:16 AM Score: 28.14 verboten of 35 points (80.40%) 1. award: 12.50 out of 15.00 points Crydon, Inc., manufactures an advanced be adrift atomic number 23 for scuba divers. Management is right away preparing detailed bud write downs for the tertiary quarter, July through September, and has assembled the future(a) information to suffice in preparing the budget: a. The Marketing Department has estimated gross gross revenue as follows for the remainder of the year (in pairs of go fins): The selling price of the swim fins is $11 per pair. July rarefied September 5,400 6,400 4,400 October November December 3,400 2,400 2,400 b. All gross revenue are on account. Based on past experience, sales are pass judgment to be collected in the interest pattern: 45% in the calendar month of sale 46% in the month following sale 9% defective The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $ 129,000. c. The company maintains finished goods inventories equal to 10% of the following months sales. The inventory of finished goods on July 1 will be 540 pairs. d. Each pair of swim fins requires 3 pounds of geico entangled. To prevent shortages, the company would like the inventory of geico manifold on hand at the end of each month to be equal to 20% of the following months production needs. The inventory of geico compound on hand on July 1 will be 3,300 pounds. e. Geico compound costs $2.50 per pound. Crydon pays for 59% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $11,000 on July 1. Required: 1a. Prepare a sales budget, by month and in total, for the third quarter. Total budgeted sales July $ 59,400 opulent $ 70,400 September $ 48,400 Quarter - Total $ 178,200 1b. Prepare a muniment of expected cash collections, by month and in total, for the third quarter . (Leave no cells blank - be certain to ente! r 0 wherever required. Do not round intermediate...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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