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    Managerial Accounting - BADM2010 Group Assignment 4 Chapter 9 Fall 2018

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    Judy1928
    This document provides a sales budget for a product of GH Inc. over 6 months, along with information on inventory policies and material costs and payments. Students are asked to prepare a materials purchase budget for the first 3 months and a schedule of cash payments for materials for the first quarter, given the sales budget, inventory policies, and payment terms for materials.

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    Managerial Accounting - BADM2010 Group Assignment 4 Chapter 9 Fall 2018

    Uploaded by

    Judy1928
    18 views1 page
    This document provides a sales budget for a product of GH Inc. over 6 months, along with information on inventory policies and material costs and payments. Students are asked to prepare a materials purchase budget for the first 3 months and a schedule of cash payments for materials for the first quarter, given the sales budget, inventory policies, and payment terms for materials.

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    Student Assignment 4 F18.docx

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    This document provides a sales budget for a product of GH Inc. over 6 months, along with information on inventory policies and material costs and payments. Students are asked to prepare a materials purchase budget for the first 3 months and a schedule of cash payments for materials for the first quarter, given the sales budget, inventory policies, and payment terms for materials.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views1 page

    Managerial Accounting - BADM2010 Group Assignment 4 Chapter 9 Fall 2018

    Uploaded by

    Judy1928
    This document provides a sales budget for a product of GH Inc. over 6 months, along with information on inventory policies and material costs and payments. Students are asked to prepare a materials purchase budget for the first 3 months and a schedule of cash payments for materials for the first quarter, given the sales budget, inventory policies, and payment terms for materials.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Managerial Accounting - BADM2010

    Group Assignment 4 Chapter 9


    Fall 2018

    A sales budget is given below for one of the products manufactured by the GH Inc.:

    January 25,000 units


    February 40,000 units
    March 65,000 units
    April 45,000 units
    May 35,000 units
    June 30,000 units

    The inventory of finished goods at the end of each month must equal 20% of the next month's sales.

    Each unit of product requires three kilograms of material. GH Inc. has a policy of maintaining an ending inventory at the
    end of each month equal to 30% of the next month's production needs.

    Material costs $5 per kg. GH Inc. pays 50% of its material purchases in the month of purchase and 50% in the following
    month.

    Required:
    a) Prepare a budget showing the quantity of material to be purchased each month for January, February, and March,
    and in total for the quarter.
    b) Prepare a schedule of the cash payments for direct material for the first quarter. Assume accounts payable at the end
    of December was $40,000.

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