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Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Llabliltles and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 69,400 166.000 83.700 257.000 $ 576,100 $ 246,600 216.000 113.500 $ 576,100 The company is in the process of preparing a budget for October and has assembled the following data: $630,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $83,800, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.570 for the month. Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October d. The budgeted net operating income for October e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month. (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October d. Net operating income for the month of October e. A budgeted balance sheet at October 31. Reg 1A Req 1B > Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 4.000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18.250 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 87.375 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. July August September October November December Budgeted Unit Sales 57,880 62,880 72,000 52, 42,eee 32,080 Required: 1. Prepare a production budget for Supermix for the months July August September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July August, and September, and for the quarter in total. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget August 82.000 September 72.000 October 52.000 57.000 Budgeted unit sales Add: Desired units of ending raw materials inventory Total needs Less: Units of beginning finished goods inventory Required production in units Required 1 Required 3 > Required 1 Reguired 1 Required 3 Required Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter ir total. Pearl Products Limited Direct Materials Budget July August September Third Quarter c e ce Units of raw materials needed per unit of finished goods I Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased

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