Quantity = 3000 X 120% = 3,600

SP = 50 x 110% = 55

Quantity x SP = 198,000

Less: Returned Sales = (6%x198,000)

Sales Projection = $186,120

Beginning Inventory $21 X 400 = 8400

Production $24 X 800 = 19200

Cost of Goods Sold 700 units

FIFO (21 X 400) + (24 X 300) = $15,600

Beginning Inventory $10 X 725 = 8400

Production $14 X 650 = 19200

Cost of Goods Sold 700 units

LIFO (14 X 650) + (10 X 350) = $12,600

Sales and Cash Collections Budget

Quarter Ending Dec 31st, 2011

Total

Sales:

Total sales

$25,000

$35,000

$30,000

$90,000

Total cash sales (40%)

$5,000

$7,000

$6,000

$18,000

Total credit sales (60%)

$20,000

$28,000

$24,000

$72,000

Cash collections:

Current month cash sales

$5,000

$7,000

$6,000

$18,000

Collection of credit sales

$20,000

$28,000

$24,000

Total cash collections

$5,000

$27,000

$34,000

$42,000

Quarter end receivables

$72,000

Cash Budget...
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