Please do not give solution in image format thanku Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold isas follows:MarchTAprilMayJuneIf seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventorybuildup.3,6007,60012,20010,20033,600The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out ofmerchandise. He will produce the 33,600 items at a level of 8,400 per month.a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the tablebelow. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.)MarchAprilMayJuneMarchAprilMayJuneUnitssoldBambino Sporting GoodsUnitsProducedChange ininventoryb. If the inventory costs $20 per unit and will be financed through the bankat 6 percent per annum, what is the monthly financing costand the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.)EndinginventoryInventoryfinancing cost$

Inventory is the required to operate business in smooth way. It is important that inventory should…

Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows: March T April May June If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 33,600 items at a level of 8,400 per month. 3,600 7,600 12,200 10,200 33,600 a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table below. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.) March April May June March April May June Units sold Bambino Sporting Goods Units Produced Change in inventory b. If the inventory costs $20 per unit and will be financed through the bank at 6 percent per annum, what is the monthly financing cost and the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.) Ending inventory Inventory financing cost $

Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows: March T April May June If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 33,600 items at a level of 8,400 per month. 3,600 7,600 12,200 10,200 33,600 a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table below. (Do not leave any empty spaces; input a O wherever it is required. Enter all values as positive value.) March April May June March April May June Units sold Bambino Sporting Goods Units Produced Change in inventory b. If the inventory costs $20 per unit and will be financed through the bank at 6 percent per annum, what is the monthly financing cost and the total for the four months? (Do not leave any empty spaces; input à 0 wherever it is required.) Ending inventory Inventory financing cost $

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

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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.
Click 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.
Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 30,000 bags of vegetable fertilizer at an average price of 5.30 per bag. Actual results are 30,600 bags sold at an average price of 5.20 per bag. Required: 1. Calculate the sales price variance for December. 2. Calculate the sales volume variance for December. 3. Calculate the overall sales variance for December. Explain why it is favorable or unfavorable. 4. What if December sales were actually 29,800 bags? How would that affect the sales price variance? The sales volume variance? The overall sales variance?
Antonio Banderos & Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as: Monthly Unit Sales October 1,250 November 2,250 December 4,500 January 3,500 11,500 Total units sold If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Antonio decides to go with level production to avoid being out of merchandise. He will produce the 11,500 items over four months at a level of 2,875 per month. a. What is the ending inventory at the end of each month? Compare the units sales to the units produced and keep a running total. b. If the inventory costs $8 per unit and will be financed at the bank at a cost of 12 percent, what is the monthly financing cost and the total for the four months? (Use 1 percent as the monthly rate.)
Hard Drives Inc. manufactures computer hard drives. Because demand has seasonal variations it is difficult to schedule production to keep costs to a minimum.Next year, managemant estimates that the demand for the hard drives will be 45000 units in the first quarter followed by 70000, 80000, and 200000 in the second, third, and forth quarters. The company's production capacity is restricted to 123000 units per quater. During the slow seasons the company must produce extra hard drives and store them in inventory to help meet demand during the high seasons, particularly during the forth quarter because Christmas sales makes this the highest sales quarter of the year.The production cost of a hard drive is £20 per unit and the company policy is to charge an inventory holding cost of £1.6 per hard drive per quarter for each unit in inventory at the beginning of a quarter. Assume that the company starts off the first quarter with 10000 units in inventory (with the holding costs to be paid in…
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 530,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 560,000 units, and, in year 2, it expects to sell 744,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year is expected to be only 17,000 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 21,250 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month's sales requirements. Sales and production take place evenly throughout the year. Required: 8. Compute the total targeted production of the finished coaster for the coming year. b. Compute the required amount of cork to be purchased for the coming year. a. Total targeted production in…
Hull sandwich Ltd makes sandwiches and the company produces this sandwich in batches of 30 packs. The production and sales data for the last two years are given below: Year ended 31st October 2019 Year ended 31st October 2018 Production 32,500 batches 31,000 batches Sales 32,000 batches 30,000 batches There was no opening inventory on 1st November 2017. The company ensured variable cost is 30% of sales in both 2018 and 2019, and the variable costs of making one batch of sandwichesbefore 31st October 2018 were as follows: Categories Cost per batch (£) Direct materials 60 Direct labour 6 Machine hour 15 Variable manufacturing overhead 4 Variable marketing and administrative overhead 7 The fixed manufacturing and marketing and administrative overheads were £600,000 and £500,000 respectively in 2018. From 1st November 2018, the company has made the following changes to its cost…
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 525,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 550,000 units, and, in year 2, it expects to sell 684,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year (year 0) is expected to be only 14,500 units. Each unit requires 0.5 pound of cork. At the end of the current year (year 0), management expects to have 20,000 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month’s sales requirements during the coming year (year 1). Sales and production take place evenly throughout the year. Required: Compute the total targeted production of the finished coaster for the coming year. Compute the required amount of cork to be purchased for…
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 522,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 544,000 units, and, in year 2, it expects to sell 648,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year is expected to be only 13,000 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 19,250 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month’s sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished coaster for the coming year. b. Compute the required amount of cork to be purchased for the coming year. (540,000 units for a is incorrect…
The S&OP team at Kansas Furniture, has received thefollowing estimates of demand requirements:July Aug. Sept. Oct. Nov. Dec.1,000 1,200 1,400 1,800 1,800 1,800 Stephanie Klein-Davis/The Roanoke Times/ AP Imagesa) Assuming one-time stockout costs for lost sales of $100 perunit, inventory carrying costs of $25 per unit per month, andzero beginning and ending inventory, evaluate these two planson an incremental cost basis: ◆ Plan A: Produce at a steady rate (equal to minimum require-ments) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost.◆ Plan B: Vary the workforce, to produce the prior month’sdemand. The fi rm produced 1,300 units in June. The cost ofhiring additional workers is $3,000 per 100 units produced.The cost of layoff s is $6,000 per 100 units cut back.
Assuming that Halton Co. uses the Average Cost method and that retail clothing is not in great demand currently as numerous other products have flooded the market and styles change constantly, the market value for total inventory is 65,000. Is a writedown necessary? How much would need to be written down?
Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company. learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?