Chapter 22 Exercises Master Budgets. In-Class Exercise (Form groups and work exercise): Exercise No....

Chapter 22

Exercises

Master Budgets

In-Class Exercise (Form groups and work exercise):

Exercise No. Page E22-24 1370 Sales & Production

Budgets

(Use the format, as reflected on the next slide, to begin this exercise)

In-Class Exercise (Form groups and work exercise):

Exercise No. Page E22-24 1370 Sales & Production

Budgets

(Use the format, as reflected on the next slide, to begin this exercise)

Operating BudgetsOperating BudgetsOperating BudgetsOperating Budgets

Sales BudgetSales BudgetSales BudgetSales Budget

Exercise E22-24:

Use the following information to prepare a sales and a production budget for the months of April, May, and June. (a) Dunbar Company manufactures drinking glasses. (b) One unit is a package of 8 glasses.(c) Each package of glasses sell for $20.(d) Projected sales for April will be 3,000 packages, with sales increasing by 100 packages per month for May, June, and July.(e) On April 1, Dunbar has 250 packages on-hand, but desires to maintain an ending inventory of 10% of the next month’s sales.

Exercise E22-24:

Use the following information to prepare a sales and a production budget for the months of April, May, and June. (a) Dunbar Company manufactures drinking glasses. (b) One unit is a package of 8 glasses.(c) Each package of glasses sell for $20.(d) Projected sales for April will be 3,000 packages, with sales increasing by 100 packages per month for May, June, and July.(e) On April 1, Dunbar has 250 packages on-hand, but desires to maintain an ending inventory of 10% of the next month’s sales.

Operating BudgetsOperating BudgetsOperating BudgetsOperating Budgets

Sales BudgetSales BudgetSales BudgetSales Budget

Operating BudgetsOperating BudgetsOperating BudgetsOperating Budgets

Sales BudgetSales BudgetSales BudgetSales Budget

Production BudgetProduction BudgetProduction BudgetProduction Budget

(Use the format, as reflected on the next slide, to work this part of the exercise)

(Use the format, as reflected on the next slide, to work this part of the exercise)

Production BudgetProduction BudgetProduction BudgetProduction Budget

Production BudgetProduction BudgetProduction BudgetProduction Budget

Production BudgetProduction BudgetProduction BudgetProduction Budget

Data from Part 1Data from Part 1Data from Part 1Data from Part 1

Production BudgetProduction BudgetProduction BudgetProduction Budget

10% of next month’s sales 10% of next month’s sales (3,100 x 10% = 310)(3,100 x 10% = 310)

10% of next month’s sales 10% of next month’s sales (3,100 x 10% = 310)(3,100 x 10% = 310)

Production BudgetProduction BudgetProduction BudgetProduction Budget

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Production BudgetProduction BudgetProduction BudgetProduction Budget

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Production BudgetProduction BudgetProduction BudgetProduction Budget

( )

Production BudgetProduction BudgetProduction BudgetProduction Budget

( ) ( )

Production BudgetProduction BudgetProduction BudgetProduction Budget

( )( )

Production BudgetProduction BudgetProduction BudgetProduction Budget

( ) ( ) ( )

Production BudgetProduction BudgetProduction BudgetProduction Budget

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