Budgetary Planning

Cook From Supply Company manufactures and sells a pesticide called Snare. The following data are preparing budgets for snare for the first 2 quarters of 2020.

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

Hill Industries had sales in 2020 of $6,800,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2020.

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.

The budget committee of Supper Company collects the following data for its san Miguel Store in preparing budgeted statements for May and June 2020.

Krause Industries balance sheet at December 31, 2020, is presented below.

Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15, respectively. Because of the intense competition Eddington faces management budgets sales semiannually. Its projections for the first 2 quarters of 2020 are as follows.

Thome and Crede, CPAs, are preparing their service revenue budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are as follows.

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.

DeWitt Industries has adopted the following production budget for the first 4 months of 2020.
MonthUnitsMonthUnits
January10,000March5,000
February8,000April4,000

Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2020, the ending raw materials inventory was 4,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's productions requirements

Instructions

Prepare a direct materials purchases budget by month for the first quarter.

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