ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year. Sales Cost per unit produced Assembly Department (N$8 per kilo) Finishing Department (N$10 per kilo) Period Quarter 1 Quarter 2 Quarter 3 REQUIRED: Units FACULTY OF COMMERCE, MANAGEMENT AND LAW A closing inventory of 15% of the next period's sales is required. The forecast sales for Quarter 4 are 36 000 units. From the company's history it was observed that the sales units for Quarter 4 of any year are the same. The standard material cost of one unit of finished product is: 42 000 48 000 33 000 5.1 Prepare the Direct Material Budget, in hours, for both Departments for each of the Quarter 1 9.1 lat NS 24 20

ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year. Sales Cost per unit produced Assembly Department (N$8 per kilo) Finishing Department (N$10 per kilo) Period Quarter 1 Quarter 2 Quarter 3 REQUIRED: Units FACULTY OF COMMERCE, MANAGEMENT AND LAW A closing inventory of 15% of the next period's sales is required. The forecast sales for Quarter 4 are 36 000 units. From the company's history it was observed that the sales units for Quarter 4 of any year are the same. The standard material cost of one unit of finished product is: 42 000 48 000 33 000 5.1 Prepare the Direct Material Budget, in hours, for both Departments for each of the Quarter 1 9.1 lat NS 24 20

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 16E

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Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
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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?
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