- Parti 55 Possible Marks Anwar Company Manufactures And Sells Lavender Perfumes Information On Budgeted Sales In Units 1 (182.48 KiB) Viewed 41 times
PARTI (55 possible marks) Anwar Company manufactures and sells Lavender Perfumes. Information on budgeted sales in units is given below. Use this information to answer all parts of question one. Month Sales in Units November 2021 10,000 December 2021 9,500 January 2022 10,500 February 2022 12,500 March 2022 11,000 April 2022 7,000 May 2022 8,500 a. The selling price of the Lavender perfume is AED 115. b. All sales are on account. Based on past experience, sales are collected in the following pattern: Month of sale Month following sale Second month following sale 15% 35% 50% C. The company maintains finished goods inventories equal to 30% of the following month's sales. The beginning inventory of finished goods on January 1st was 2,800 units d. Each Bag requires 8 pounds of raw materials. e. The company requires that the ending inventory of raw materials be equal to 25% of the following month's production needs. The beginning inventory of raw materials inventory was on January 1st was 3,150 units f. The raw material costs AED11.5 per pound. g. 60% of a month's purchases of raw materials is paid for in the month of purchase; the remaining is paid for in the following month. h. The accounts payable on December 31st will be $85,000. 2 Required: Prepare: 1. Prepare a sales budget, by month and in total, for the First quarter. (3 marks) 2. Prepare a schedule of expected cash collections, by month and in total, for the First quarter. (15 marks) 3. Prepare a production budget for each of the months January, February, March and April. (10 marks) 4. Prepare a direct materials budget, by month and in total, for the First quarter. (12 marks) 5. Prepare a schedule of expected cash disbursements, by month and in total, for the First quarter. (15 mar