12 Grandma S Tassels Is A Manufacturer Of Decorative Tassels For Use In Commencement Ceremonies Throughout The World Y 1 (29.7 KiB) Viewed 35 times
12 Grandma S Tassels Is A Manufacturer Of Decorative Tassels For Use In Commencement Ceremonies Throughout The World Y 2 (24.35 KiB) Viewed 35 times
12. Grandma's Tassels is a manufacturer of decorative tassels for use in commencement ceremonies throughout the world. Yvonne Yancy-Smith is the President and CEO of Grandma's Tassels, and she is working with the accounting group to put together its maste budget for the year using the following assumptions: a. Tassels are sold for $25 per tassel. b. Grandma's Tassels collects 40% of credit sales in the month of sale and 58% in the month following sale. 2% of sales are not collected. All sales are on credit. c. December sales were $600,000. a. Complete the following sales budget and schedule of expected cash collections for the first quarter for Grandma's Tassels: Budgeted Unit Sales Price per Unit Total Sales Grandma's Tassels Sales Budget December Sales January Sales February Sales March Sales Total Cash Collections January 5,000 February 3,000 March Schedule of Expected Cash Collections January February March 13 10,000 Quarter 18,000 Quarter
Grandma's Tassels has a desired ending finished goods inventory of 20% of next month's sales units, and this requirement was met in December. a. Inventory on March 31 should be 60,000 b. It takes 12 minutes (0.2 hours) of labor to make a tanel, and workers are paid $12 per hour. b. Complete the following production and labor budgets for the first quarter for Grandma's Tassels Budgeted Unit Sales Total Needs Units to Produce e Units to Produce Total DIH Direct Labor Costs Grandma's Tassels Production Budget January 5,000 February 1,000 Grandma's Tanel Labor Badest January February March 10,000 March Quarter 18.000 Quarter
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