Question

Use the information above to solve for Requirement 2:

Feathered Friends makes bac yard birdfeeders The company sells the birdfeeders to home improvement stores The company would also like o maintain an ending stock of fished birdfeeders equal to 20% o the next month's for $13 per birdfeeder Each birdfeeder requires 2.0 board feet of wood, which the company obtains at a cost of $3sales. Sales data for the company is as follows: per board foot The company would like to maintain an ending stock of wood equal to 25% of the next month's production requirements EEB (Click the icon to view the sales data.) (Click the icon to view additional data) Read the requirements Requirement 1. Prepare the sales budget for the first three months of the year, as well as a summary budget for the quarter, including a separate section that details the type of sales made (cash versus credit) Feathered Friends Sales Budget For the Quarter Ended March 31 More Info Data Table Month In any given month, 15% of the total sales are cash sales, while the remainder are credit sales Units January February March Quarter October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales February projected sales. March projected sales April projected sales 90,000 90,000T 770 after the sale, 4% is collected three months after the sale, and the 84,0001 remaining 6% is never collected. 99,000 93,000 84,000 89,000 93,000 266,000 Unit sales Multiply by: Sales price per unit13 13 13 $13 Total sales revenue The company's collection history indicates that 80% of credit sales is collected in the month after the sale, 10% is collected two months $1,092 000 $1,157,000 S 1,209,000 $ 3,458,000 Assume that the total cost of direct materials purchases in December was $570,000 The company pays 55% of its direct materials purchases in the month of purchase, and pays the remaining 45% in S 163,800 173,550 S 181,350 $ 518,700 983,450 1027,650 2,939,300 $ 1,092,000 $1,157,000 S 1209,000 $ 3,458,000 Cash sales Credit sales Total sales revenue 928,200 108,000the month after purchase Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. Feathered Friends Production Budget For the Quarter Ended March 31 Month January February March Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce

Answer 1

Production Budget

	January	February	March	Quarter
Sales (units)	84,000	89,000	93,000	266,000
+ Ending inventory of Finished Goods	17,800	18,600	21,600	58,000
Total finished goods inventory needed	101,800	107,600	114,600	324,000
-Beginning inventory of Finished Goods	- 16,800	- 17,800	- 18,600	- 53,200
Production units	85,000	89,800	96,000	270,800

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