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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales:
1st Quarter= 11,000
2nd Quarter= 12,000
3rd Quarter= 14,000
4th Quarter= 13,000
The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter and 5% of sales are expected to be "'uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.
Cash collections:
1st quarter:
Sales= (11,000*18)*0.65= 128,700
From last year= 70,200
Total= $198,900
2nd quarter:
Sales= (12,000*18)*0.65= 140,400
From 1st Q= 59,400
Total= 199,800
3rd quarter:
Sales= (14,000*18)*0.65= 163,800
From 2nd Q= 64,800
Total= 228,600
4th quarter:
Sales= (13,000*18)*0.65= 152,100
From 3rd Q= 75,600
Total= 227,700
Production budget:
1st Q:
Sales= 11,000 units
Ending inventory= (12,000*0.15)= 1,800
Beginning inventory= (1,650)
Total= 11,150 units
2nd Q:
Sales= 12,000 units
Ending inventory= (14,000*0.15)= 2,100
Beginning inventory= (1,800)
Total= 12,300 units
3rd Q:
Sales= 14,000 units
Ending inventory= (13,000*0.15)= 1,950
Beginning inventory= (2,100)
Total= 13,850 units
4th Q:
Sales= 13,000 units
Ending inventory= 1,850
Beginning inventory= (2,100)
Total= 12,750 units
The production budget for Quarters 1st, 2nd, 3rd, and 4th are 11,150 units, 12,300 units, 13,850 units, and 12,900 units.
What is production budget?
The production budget, also called the production budget, is a budget that determines the amount of factory product that needs to be produced during the budget period.
This budget is determined by the product unit or quantity. Many other budgets are stated in the form of dollars instead of value.
As per the information, we have to calculate the value of sales on each quarter.
First Quarter:
[tex]\rm\,Sales= (11,000\times18)\times0.65= 128,700\\\\\,From \; last \; year = \$70,200\\\\Total Sales = \$198,900[/tex]
Second Quarter:
[tex]\rm\,Sales = (12,000\times 18)\times0.65\\\\Sales = \$40,400\\\\From \;1st \; Quarter = \$59,400\\\\Total= \$199,800[/tex]
Similarly, we need to calculate the sales of other quarters which are as follows:
Third Quarter Sales will be $228,600
Fourth Quarter sales will be $227,700
Now, let's calculate the Production Budget of all the quarters:
[tex]\rm\,Production \, Budget\,= \,Closing\, Inventory + Sales\, Budget\, - Beginning\, Inventory \,[/tex]
First Quarter:
[tex]\rm\,Production \, Budget\,= [(12,000\times 0.15) + 11,000 - 1650]\\\\\\rm\,Production \, Budget\,= 11,150\, Units[/tex]
Second Quarter:
[tex]\rm\,Production \, Budget\,= [(14,000\times 0.15) + 12,000 - 1800]\\\\\rm\,Production \, Budget\,= 12,300 Units[/tex]
Third Quarter:
[tex]\rm\,Production \, Budget\,= [(13,000\times 0.15) + 14,000 - 2,100]\\\\\rm\,Production \, Budget\,= 13,850 Units[/tex]
Fourth Quarter:
[tex]\rm\,Production \, Budget\,= [1,850 + 13,000 - 1,950]\\\\\rm\,Production \, Budget\,= 12,900\, Units[/tex]
Hence, The production budget for Quarters 1st, 2nd, 3rd and 4th are 11,150 units, 12,300 units, 13,850 units, and 12,900 units.
To learn more about production budget, refer to the link:
https://brainly.com/question/13061264
