3. Majan Company expects sales of Product G to be 30,000 units in April, 40,000 units in May and 50,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 30% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 20,000 units of Product G in the ending inventory. Majan Company's production of Product G for the month of May should be: A. 25,000 units B. 30,000 units C. 35,000 units D. 33,000 units
Q: NUBD Corp, plans to sell 200,000 units of LIB product in July and anticipate a growth in sales of 7%…
A: Given information, Sales in july =200,000 units Growth of sales =7% per month Ending inventory = 80%…
Q: A. Cardinal Company has finished goods inventory of 55,000 units on January 1st Its projected sales…
A: Production budget is prepared to estimate the production units and desired inventory for a…
Q: In March, Dough Corporation expects to sell 41,000 units of its single product. The company has…
A: Here, Expected Sales is 41,000 units Beginning Inventory is 2,800 units Ending Inventory is 2,400
Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…
A: Solution: Number of units that Tiny must produce in June and July are present in the following…
Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…
A: A budget is an estimate of incomes and expenditures of an organization over a period of time.
Q: Delsing Plumbing Company has beginning inventory of 24,000 units, will sell 70,000 units for the…
A: Given Beginning Inventory = 24,000 units Sell = 70,000 units Ending Inventory = 40% of Beginning…
Q: Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and…
A: Here in this question, we are required to calculate inventory, purchases and cost of goods sold.…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: The inventory that a business must buy throughout each budget period is included in a purchases…
Q: Jabber Inc. wants ending inventory to be 30% of that next month’s cost of goods sold. In June,…
A: The budget is prepared to estimate the requirements for the future period. The budgets are prepared…
Q: MAXI Co. has the following information: *Projected sales for four (4) months are as follows:…
A: Budgets are the forecasts or estimates that are made for future period of time. It can be sales…
Q: 1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February…
A: Production budget is a schedule of number of units that should be produced to meet the targets of…
Q: Butterfly Co. targets to sell 12,000 units of their newly launched line of product in April. If the…
A: Inventory means the goods to be sold by the business in order to earn profit.
Q: NUBD Corp, plans to sell 200,000 units of LIB product in July and anticipate a growth in sales of 7%…
A: Given information, Sales in July = 200,000 units Growth in sales =7% per month Therefore, •Sales in…
Q: October, November, and December, CVM Inc. expect to sell 50,000, 48,000, and 51,000 units…
A: Sales of October = 50,000 Sales of November = 48,000 Sales of December = 51,000 End of month…
Q: Tyler Co. predicts the following unit sales for the next four months: April, 3,000 units; May, 4,000…
A: The production budget or spending plan tells the entrepreneur what number of units of the item to…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: The number of units of product that must be manufactured is defined by the production budget, which…
Q: For a company operating 300 days a year, the annual demand is 63,000 units, the lead time is 4…
A: Formula: Daily demand units = Annual demand units / Number of operating days in a year. Reorder…
Q: Bidbid Company's production budget for month of February is 37,000 units, and the Company's ending…
A: It is pertinent to note that inventory management helps the entity in order to reduce the holding…
Q: The company anticipates the following sales, in units January February March Month Sales 528 573 551…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Assume a company's estimated sales for January, February, and March are 30,000 units, 31,000 units,…
A: Solution: Budgeted production in units for January = Budgeted sales units + Desired ending inventory…
Q: how many units does Yorkley plan to produce during March? Select one:
A: Answer: Option d.
Q: Samuelson has a beginning inventory balance on January 1 of 12,000 units and desires an ending…
A: Given information: Beginning inventory on January 1 is 12,000 units, End balancing of 20% of the…
Q: A company has a policy of maintaining an inventory of finished goods equal to 30 percent of the…
A: Raw material means the material purchased and still not enter in to the production lines. Work in…
Q: Truliant Co. sells a product called Withitall and has predicted the following sales for the first…
A: The correct answer is Option (a).
Q: CO, SRL anticipates the following sales in the given months: March 42,000 units April 59,000 units…
A: The manufacturing companies have to plan the required production levels for future so as to meet the…
Q: Prepare a production budget for the first quarter of the year. Show the number of drums that should…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Trevor Company expects sales of Product W to be 62,000 units in April, 77,000 units in May, and…
A: Desired ending inventory for April = Budgeted sales for May x 40% = 77000*40% = 30800 units
Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…
A: Budgeted cost of goods sold in March = 4,300 * $260 * 60%= $670,800
Q: MAXI Co. has the following information: *Projected sales for four (4) months are as follows:…
A: The budget is prepared to estimate the requirements for the future period.
Q: The Volt Battery Company has forecast its sales in units as follows: January 1,100 February…
A: The manufacturing company needs materials, labor, and expenses for the production process. Thus, the…
Q: Forrest Company manufactures phone chargers and has a JIT policy that ending inventory should equal…
A: Production budget: It reflects the number of units of the goods that should be manufactured by the…
Q: Sales of Suzhu Corp are expected to be 6,000 units for the month. The company woud like to maintain…
A: A production plan is the schedule of production which includes the bifurcation of units to be…
Q: Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods…
A: Purchases for a Period = Cost of Goods Sold for the Period + Inventory at the Ending of the Period -…
Q: Bidbid Company's production budget for month of February is 16,600 units, and the Company's ending…
A: It is pertinent to note that entities manage inventories so that they can reduce their holding and…
Q: One Device makes universal remote controls and expects to sell 526 units in January, 575 in…
A: Production budget shows how many units needs to be produced for desired sales and maintaining the…
Q: (Production schedule) The projected sales, in units,for Einstein Inc. By month for the first four…
A: Ending inventory = 1/2 of next month estimated sales January = 12,000*1/2 = 6,000 units February =…
Q: Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales…
A: The production budget is typically formed from a mix of the demand forecast and the intended amount…
Q: Li Company manufactures a product requiring 2 pounds of raw material for each finished unit. Raw…
A: Introduction: The resources employed by the corporation to generate goods and services for resale…
Q: Breaded Oak, Inc. has a policy that requires 20 percent of the expected sales of its product to be…
A: Ending Inventory = 20% of Next month expected sales Budgeted Production = Budgeted sales + Desired…
Q: MNO Company forecast sales in units for July to November as follows: Units…
A: Production budget is that budgeted statement which helps the manufacturing unit to infer about…
Q: Cardinal Company has finished goods inventory of 55,000 units on January 1. Its projected sales for…
A: Budgeted units of inventory = Next month's sales*20%
Q: 2.1 Use the information provided below to calculate the number of units of Product Tex that must be…
A: Given that, Estimated Sales volume for ; June = 25 000 units July = 21 000 units August = 30 000…
Q: *Three (3) kilos of materials are required per unit produced. Every kilo of material is $20. Raw…
A: Introduction: Operating budgets are the primary component of master budget and involve examining the…
Q: Santorini Corporation has experienced a number of out of stock situations with respect to its…
A: Desired ending inventory for June = July budgeted sales x 60% = 4400 units x 60% = 2640 units
Q: Jarash, Inc. anticipates sales of 121758 units, 150,000 units and 160.000 units in July. August, and…
A: The units production in July can be estimated from the cost of goods sold equation
Q: 1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct material per unit…
A: Budgeting is used to analyze and evaluate the future situation. basically it is based on past…
Q: Wright Lighting Fixtures forecasts its sales in units for the next four months as follows:…
A: The budgets are prepared to estimate the requirements for the future period. the production budget…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
- Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.How many units are in beginning inventory it 32,000 units are budgeted for sales, 35,000 units are produced, and the desired ending inventory is 9,000 units?Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
- Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
- Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?