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Quiz Question

July 26, 2016 0 Comment

Paper , Order, or Assignment Requirements

Question 1)


Jenna Mitchell, owner of Jenna’s Jams Pty Ltd, produces homemade-style jams using fruits indigenous to her local area. Jenna has estimated the following sales of 500 gm jars of fruit jam for the rest of the year and January of next year.

September 100

October 150

November 170

December 225

January 100

Jenna likes to have 20% of the next month’s sales needs on hand at the end of each month. This requirement was met on August 31.

Materials needed for each jar of fruit jam are as follows:

Fruit 500 gm

Sugar 500 gm

The materials inventory policy is to have 5% of the next month’s fruit needs on hand as well as 50% of the next month’s production needs for sugar. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on September 1 met this company policy.


Prepare a production budget for September, October, November, and December for fruit jam.

Prepare a purchases budget for fruit and sugar used in the production of fruit jam for the months of September, October, and November.


Question 1)



Information pertaining to Noskey Corporation’s sales revenue is presented below.


November 2014



December 2014



January 2015



Cash sales




Credit sales




Total sales





Management estimates that 5% of credit sales are uncollectable. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Purchases of inventory each month are 70% of the next month’s projected total sales. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder are paid in the month following the purchase.


What are Noskey’s budgeted cash collections in December 2014 from November 2014 credit sales?

What are total budgeted cash receipts in January 2015?

What is Noskey budgeting for total cash payments in December 2014 for inventory purchases?

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