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11. Cards by Shannon's production department (information in Exercise 10) produces enough finished goods to cover each year's sales, plus 5% of the upcoming year's sales. If the company followed these production guidelines in 20Y5 and 20Y6, determine the total units to be produced in 20Y6. The company expects unit sales to increase by 10% in 20Y7. Round answers to the nearest whole unit. Units Sales (20Y5) Unit Sales (20Y6) Unit Sales (20Y7) Product A 2,000 2,040 2,244 Product B 5,000 5,100 5,610 Product C 1,500 1,530 1,683 Cards by Shannon Production Budget For the Year Ended December 31, 20Y6 Product A Product B Product C Expected units to be sold Plus desired ending inventory 2,040 5,100 1,530 112 281 84 Total units required 2,152 5,381 1,614 Less beginning inventory 102 255 77 Total units to be produced 2,050 5,126 1,537

11. Cards by Shannon's production department (information in Exercise 10) produces enough finished goods to cover each year's sales, plus 5% of the upcoming year's sales. If the company followed these production guidelines in 20Y5 and 20Y6, determine the total units to be produced in 20Y6. The company expects unit sales to increase by 10% in 20Y7. Round answers to the nearest whole unit. Units Sales (20Y5) Unit Sales (20Y6) Unit Sales (20Y7) Product A 2,000 2,040 2,244 Product B 5,000 5,100 5,610 Product C 1,500 1,530 1,683 Cards by Shannon Production Budget For the Year Ended December 31, 20Y6 Product A Product B Product C Expected units to be sold Plus desired ending inventory 2,040 5,100 1,530 112 281 84 Total units required 2,152 5,381 1,614 Less beginning inventory 102 255 77 Total units to be produced 2,050 5,126 1,537

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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I do not understand the desired ending inventory in exercise 11. I cannot figure the calculations to get that number. 

10. In 20Y5, Cards by Shannon generated the sales shown. The company expects sales to increase by 2% for each product in the following year if the prices remain the same. Determine the budgeted revenue for 20Y6. Cards by Shannon Sales Budget For the Year Ended December 31, 20Y6 Units Sales (20Y5) Unit Sales (20Y6) Selling Price per Unit Budgeted Revenue Product A 2,000 2,040 $10 $20,400 Product B 5,000 5,100 12 61,200 Product C 1,500 1,530 12,240 $93,840 00
Transcribed Image Text:10. In 20Y5, Cards by Shannon generated the sales shown. The company expects sales to increase by 2% for each product in the following year if the prices remain the same. Determine the budgeted revenue for 20Y6. Cards by Shannon Sales Budget For the Year Ended December 31, 20Y6 Units Sales (20Y5) Unit Sales (20Y6) Selling Price per Unit Budgeted Revenue Product A 2,000 2,040 $10 $20,400 Product B 5,000 5,100 12 61,200 Product C 1,500 1,530 12,240 $93,840 00
11. Cards by Shannon's production department (information in Exercise 10) produces enough finished goods to cover each year's sales, plus 5% of the upcoming year's sales. If the company followed these production guidelines in 20Y5 and 20Y6, determine the total units to be produced in 20Y6. The company expects unit sales to increase by 10% in 20Y7. Round answers to the nearest whole unit. Units Sales (20Y5) Unit Sales (20Y6) Unit Sales (20Y7) Product A 2,000 2,040 2,244 Product B 5,000 5,100 5,610 Product C 1,500 1,530 1,683 Cards by Shannon Production Budget For the Year Ended December 31, 20Y6 Product A Product B Product C Expected units to be sold 2,040 5,100 1,530 Plus desired ending inventory 112 281 84 Total units required 2,152 5,381 1,614 Less beginning inventory 102 255 77 Total units to be produced 2,050 5,126 1,537
Transcribed Image Text:11. Cards by Shannon's production department (information in Exercise 10) produces enough finished goods to cover each year's sales, plus 5% of the upcoming year's sales. If the company followed these production guidelines in 20Y5 and 20Y6, determine the total units to be produced in 20Y6. The company expects unit sales to increase by 10% in 20Y7. Round answers to the nearest whole unit. Units Sales (20Y5) Unit Sales (20Y6) Unit Sales (20Y7) Product A 2,000 2,040 2,244 Product B 5,000 5,100 5,610 Product C 1,500 1,530 1,683 Cards by Shannon Production Budget For the Year Ended December 31, 20Y6 Product A Product B Product C Expected units to be sold 2,040 5,100 1,530 Plus desired ending inventory 112 281 84 Total units required 2,152 5,381 1,614 Less beginning inventory 102 255 77 Total units to be produced 2,050 5,126 1,537
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