ACCT 2101 Lecture : Acct Notes Oct Ch8
Document Summary
Sales budget: estimated amount ($ of sales) multiply by unit price. Beatrice company estimates that unit sales of its lawn chairs will be 7,200 in october; 7,400 in november; and 7,100 in december. Raw materials purchases budget: *units x total cost. Preston, inc. , manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 480 units in july and 400 units in august. Each unit requires 10 feet of wood at a cost of . 50 per foot. Preston wants to always have 300 feet of wood on hand in materials. Each unit requires 1. 75 hours of direct labor, and labor wages average per hour. Getty company expects sales for the first three months of next year to be ,000, Getty expects 35 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows:
