le batteries, the heavy-duty HD-240. The 2022 sales forecast is as follow Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 The January 1, 2022, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the nex quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Instructions Prepare quarterly production budgets for each quarter and in total for 2022.

le batteries, the heavy-duty HD-240. The 2022 sales forecast is as follow Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 The January 1, 2022, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the nex quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Instructions Prepare quarterly production budgets for each quarter and in total for 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Doc Corp. reporting year ends on December 31, and it is currently preparing interim financial statements for the six months ending June 30, 2018. The price of its product tens to vary. At June 30, 2018, it has inventories of 10,000 units, at a cost per unit of P12. The net realizable at June 30, 2018 is P10 per unit. Then expected net realizable value of these inventories at December 31, 2018 is P13.75. In the interim statement of financial position at June 30, 2018, these inventories should be presented at what amount?
Based on a physical inventory taken on December 31, 2020, ABC Co. determined its chocolate inventory on a FIFO basis at P2,600,000 with a replacement cost of P2,500,000. ABC Co. estimated that, after further processing costs of P1,200,000, the chocolate could be sold as finished candy bars for P4,000,000. The normal profit margin is 10% of sales. Under the lower of cost or net realizable value, what amount should ABC Co. report a chocolate inventory in its December 31, 2020 statement of financial position? A. P2,800,000 B. P2,600,000 C. P2,500,000 D. P2,400,000 E. answer not given
also could you please explain why ,cost of goods avarage for sale2020,and cost of goods sold change both of them? Staley Watch Company reported the following income statement data for a 2 year period: 2019 2020 Sales $210,000 $250,000 Cost of Goods Sold Beginning Inventory 32,000 44,000 Cost of Goods Purchased 173,000 202,000 Cost of Goods Available for Sale 205,000 246,000 Less: Ending Inventory 44,000 52,000 Cost of Goods Sold 161,000 194,000 Gross Profit 49,000 56,000 Staley uses periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $5,000. Required: Prepare correct income statement data for the two years. What is the cumulative effect of the inventory error on total gross profit for the two years?
31. At the end of FY2020, our company reported $100kin Inventory. Over FY2021, we spent another $70kpurchasing Inventory. At the end of FY2021, we reported $80kin Inventory on our Balance Sheet. What was our company's Cost of Goods Sold for FY2021? (a) $70k(b) $90k(c) $110k(d) Not enough information without inventory costing mehod (FIFO, LIFO, etc.) (e) None of the above.
CAC Co. provided these information for 2020: Inventory - January 1 : P400,000; Freight in : P300,000; Purchase Returns : P900,000; Inventory - December 31 : P500,000; Selling expenses: P1,250,000; Sales Discount: P250,000. The cost of sales is six times the selling expenses. How much is the gross purchases for 2020?
Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Alpha CD will incorporate these changes in its 2019 forecast, what would be the operating income? P480,000 P720,000 P680,000 P420,000
The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were shipped to the branch. The account “allowance for overvaluation of branch inventory”, after adjustment, shows a balance of P25,000 at the end of the year. Compute the amount of ending inventory at: A. Billed Price *
Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Alpha CD will incorporate these changes in its 2019 forecast, what would be the operating income? a. P480,000 b. P720,000 c. P680,000 d. P420,000
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per unit Sales 425000 $36 Beginning Inventory 35000 18 Purchases 400000 24 Ending Inventory 10000 ? Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on hand 40,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.
Anpanman, Inc. reported the following information for the year 2020: • Beginning Inventory- P5,000,000 • Purchases- P26,000,000 • Freight In- P2,000,000 • Purchase returns and allowances- P3,500,000 • Purchase discounts- P1,500,000 • Sales- P40,000,000 • Sales returns- P3,000,000 • Sales allowances- P500,000 • Sales discounts- P1,000,000 Physical inventory on the company’s warehouse was made at year-end, which shows that P4,000,000 worth of inventory is physically located within the company’s premises. However, unsold goods out on consignment with selling price of 1,000,000 are still on the consignee’s premises. Based on history, Anpanman uses a gross profit rate of 40%. How much is the estimated inventory loss? A. P2,100,000 B. P2,700,000 C. P1,200,000 D. P1,800,000
ail, and cost indexes for 2024 and 2025 are as follows: 2024 2025 Cost Retail Cost Retail Beginning inventory $ 39,200 $ 56,000 Net purchases 92,600 116,000 $ 104,166 $ 128,400 Freight-in 2,800 3,300 Net markups 14,000 9,600 Net markdowns 2,800 3,000 Net sales to customers 113,355 117,120 Sales to employees (net of 20% discount) 3,300 5,280 Price Index: January 1, 2024 1.00 December 31, 2024 1.06 December 31, 2025 1.10 Required: Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
E7-15 Alternative Inventory Methods Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Production Sales Units Total Costs Units Sales Units in Ending Revenue Inventory 2018 100,000 $200,000 80,000 $400,000 20,000 2019 120,000 234,000 110,000 550,000 30,000 2020 130,000 247,000 150,000 750,000 10,000 2021 130,000 240,500 120,000 600,000 20,000 Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the company’s return on assets (net income divided by average…