Question

List 3 benefits of budgeting. List 2 advantages and 1 disadvantage of participative budgeting. The TS...

  1. List 3 benefits of budgeting.

  1. List 2 advantages and 1 disadvantage of participative budgeting.


  1. The TS Corporation has budgeted sales for the year as follows:

  Quarter 1 2 3 4

  Sales 10,000 12,000 14,000 16,000


The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material.

                 What is scheduled production for third quarter?


  1. Assuming budgeted production as follows:

  Quarter 1 2                    

  

Production 15,000 10,000



The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. Four pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material.

                   What is the budgeted Raw Material purchases in lbs for first quarter?

Business   Accounting   
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Answer #1
Q1.
Budgeted Sales units of Q-3 14000
Add: Ending inventory (16000*25%) 4000
Sub total 18000
Less: Beginning inventory (14000*25%0 3500
Budgeted Production units of Q-3 14500
Q2. Q1 Q2
Production units 15000 10000
Multiply: Raw materual per unit 4 4
Total Production needs 60000 40000
Add: Ending inventory 4000
Total needs 64000
Less: Beginning inventory 6000
Raw material purchase in lbs 58000
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