Question

2 Which of the following budgets are prepared before the sales badge Cash Collection Badast Yes No Production Budget Yes Yes A) B) C) D) No Yes No No Barry Corporation makes one product and has provided the following information to belP prepare budget for the next four months of operations Budgeted selling price per unit Budgeted unit sales (all on credit) January February $97 10,000 Units 12,000 Units 13,300 Units 15.200 Units March April Credit sales are collected: 30% in the month of the sale 70% in the following month The ending finished goods inventory should equal 30% of the following month's sales. 3. Barry's budgeted sales for February is closest to: A) $1,474,400 B) $1,290,100 C) $1,164,000 D) $970,000

Answer 1

aree * Production budget and rodes budgets cash prepared based on sales budget. Answer D * so first sales budget is prepared * Budgekl sale = Budgeted sale , in units Budgeted selling Price for february, nomunits & month = 12000 units X $97/unit = $1164000