Crydon Inc manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:
The selling price of the swim fins is $50 per pair
July 6,000 October 4,000
August 7,000 November 3,000
September 5,000 December 3,000
b. All sales are on account. Based on past experience , sales are expected to be collected in the following pattern;
40% in the month of sale
50% in the month following sale
The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $130,000
c. The company maintains finished good inventories equal to 10% of the following month's sales. the inventory of finished goods on July 1 will be 600 pairs.
d. Each pair of swim fins require 2 pounds of geico compound. To prevent shortages , the company would like the inventory of geico compound on hand at the end of each month to be equal to 20%of the following month's production needs. The inventory of geico compound on hand on July 1 will be 2,440 pounds.
e. Geico compound costs $2.50 per pound. Crydon pays for 60% of its purchases in the month of purchase; the remainder is paid for int he following month . The accounts payable balance for geico compound purchases will be $11,400 on July1.
1. Prepare a sales budget, by month and in total , for the third quarter. (Show your budget in both pairs of swim fins and dollars). Also prepare a schedule of expected cash collections , by month and in total , for the third quarter.
2. Prepare a production budget for each of the months July through October.
3. Prepare a direct materials budget for geico compound, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for geico compound , by month and in total, for the third quarter.© BrainMass Inc. brainmass.com October 25, 2018, 9:06 am ad1c9bdddf
Solution is provided in a separate excel file attached .It contains five statements covering the requirements ...
The three budgets i.e. sales budget, Production budget and Material purchase budget are integrated in the proper sequence so that student can understand the step by step preparation of these budgets. Necessary explanatory notes are provided at the end so as to enable students to understand how beginning and ending inventory figures are worked out for each month of production and Purchase budgets.
Schedule of cash collection and cash disbursement shows clear and detailed calculation of month wise figures and quarter totals.
Describe the specific analysis methods
Can you help me get started with this assignment?
Using the Riordan Manufacturing Service Request SR-rm-004 form (PASTED BELOW), prepare a paper that accomplishes the items listed below.
Please see ** ATTACHED ** Scenario for complete details!!
Please ignore the "Expected Results/Impact when completed" section in the service request; instead focus the paper on the IT scope and proposal addressing the items listed below.
Explain the scope and feasibility of the project (What needs to be created or changed from an IT system perspective).
Describe the requirements-gathering techniques and methods you would propose to use for the project. Describe the specific analysis methods which will be used to determine the user requirements.
Identify the key factors or technique you will use to verify the requirements are successfully gathered.
Service Request SR-rm-004
Analyze HR System
Organization: Riordan Manufacturing
Locations: All Plant Locations
Requester: Hugh McCauley, COO
Description of Request:
Analyze the HR system to integrate the existing variety of tools in use today into a single integrated application.
Background of Request:
We would like to take advantage of a more sophisticated, state-of-the art, information systems technology in our Human Resources department.
Expected Results/Impact when completed:
Define the business requirements for the development of an HR system to support the objective of this request. Create a detailed project plan that provides a list of all the tasks, resources, schedule and budget required to complete the project. The project should be completed in approximately six months, so the new system can be utilized in the second quarter of next year
Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. With state-of-the art design capabilities, we create innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. With facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, we have the capacity to fulfill your unique needs. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise.
Some of our products ...
? Plastic Bottles
? Fans - All sizes
? Heart Valves
? Medical Stents
? Custom Plastic Parts
SALES AND MARKETING
The firm is attempting to consolidate customer information to deliver better value to the customer. The firm has historical records in many disparate databases, as well as in paper files and microfiche. Below is a listing of information the firm has available to consolidate into a CRM system.
Riordan has a system to track historical sales. In the past, most sales data was recorded using paper and pencil. In the last few years, the firm has managed the information electronically. Information available includes the following:
? Dates including order, delivery, and payment dates by order.
? Unit and dollar volume of each product including plastic bottles, fans, heart valves, medical stents, and custom plastic parts rolled up to be examined by product group and customer.
? Sales by customer to include price paid, cost, margin, and discount given.
Files of Past Marketing Research, Marketing Plans, and Design Awards
The marketing organization wants to build on past knowledge. As a result, past marketing plans and results from past market research studies are stored in a file cabinet in the marketing department. The firm has a showcase in the lobby to display the various design awards earned. The firm is assessing the possibility of hiring a part-time college student to scan the documents electronically.
The company has 15 - 20 major customers, including a government contract for fans. The firm has 12 minor customers. Each member of the sales force maintains his/her own set of customer records using a variety of tools. Some sales team members use paper and pencil, others sales management software such as Act, and others a hybrid. In order to better understand and anticipate customer needs, the firm is evaluating a new integrated customer management system to accompany the new team selling approach that will be soon rolled out.
The production plan maintains records of the number of units produced of each item by shift, which can be rolled up to the product group and year.
Profit and Loss Statements by Item and Group
The marketing department, with the support of the finance and production departments, maintains profit and loss statements, by item and by group.
The firm has historical and current annual budget allocations for marketing communications and marketing research.
Marketing Communications activities include:
? Sales force promotions
? Price / volume discounts to key accounts
? Public relations
? Brand development
? Tradeshows, events, and sponsorships
? Customer user group underwriting
? Literature and other collateral material
Marketing Research expenditures include:
? Market size / opportunity studies
? Customer focus groups
? Brand development research
Marketing Budget Anticipated Results
Two year plan to reach the $50 million revenue mark. This objective was developed collaboratively with Dr. Riordan along with the executive team. It incorporates the input of the line managers closest to the day-to-day operations. The objective will be achieved through:
? Increased sales to existing customers by increasing sales force promotions, price discounts, and customer user group services.
? Expanded sales to new customers by implementing public relations activities, trade shows, brand development and sales force promotions.