* 00I今4Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company inEurope, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $1.25 each and mustbe paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the nextsix months:JanuaryFebruaryMarch11,80018,80013,20014,400eBookAprilMay9,4006,300PrintJuneReferencesRequired:a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.MIDLAND COMPANYMerchandise Purchases BudgetFor the Period Ended March 31(in units)JanuaryFebruaryMarchUnits to be purchasedEstimated costGraw< Prev.5 of 5NextO Type here to search五PriSc区+DV<F10F11F12F-181233.&7.GBAltAlt

The production budget is prepared to estimate the production cost to be incurred in the future.

Midland Company buys tiles and prints different designs on them for Europe, so at all times it keeps on hand a stock equal to the tiles nee be paid for in cash. The company has 29,000 tiles in stock. Sales est six months: January February March 11,800 13,200 14,400 April May June Required: a. & b. Estimate purchases (in units) and cash required to make purcl MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 (in units) January February March Units to be purchased Estimated cost

Midland Company buys tiles and prints different designs on them for Europe, so at all times it keeps on hand a stock equal to the tiles nee be paid for in cash. The company has 29,000 tiles in stock. Sales est six months: January February March 11,800 13,200 14,400 April May June Required: a. & b. Estimate purchases (in units) and cash required to make purcl MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 (in units) January February March Units to be purchased Estimated cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $1.00 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,300 February 17,600 March 13,400 April 13,200 May 8,700 June 6,300 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
1. Banner House Inc. gives all its sales people a base salary of $39,000 per annum and a commission of 8% on all banners that they sell over $5,000. Calculate Courtney's salary last month if she sold $11,000 worth of banners. 2. Patrick, a sales representative at a jewelry store, receives a 2.00% commission for the first $10,000 in sales she makes, 4.00% for the next $30,000, and 6.00% thereafter. If she was paid $2,500.00 in commissions last month, calculate the amount of sales she made. 3. Jesse works for a clothing boutique store as a salesperson. She receives a monthly base salary of $900 and earns a commission on sales over $20,000. If she earned $8,000 last month and she made $110,000 in sales, calculate her commission rate.
7. HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag of cement for a year is £4. The cost of placing an order for new inventories is estimated at £250. Based on the case scenario, what is the economic order quantity (EOQ)? A 354 bags B 500 bags C 8 bags D 1,000 bags
Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change. Texas Rex expects the following Cash Receipts in each quarter: Q1 Q2 Q3 Q4 $10,600 $11,850 $14,775 $19,625 Texas Rex believes the amount of cash needed for payments on account for raw materials each quarter is: Q1 Q2 Q3 Q4 $4,594 $5,039 $6,219 $6,819 The Cash Budget is critically important to the survival of businesses. It tells management how much cash is available and shortfalls of cash need to be anticipated and handled through expense reductions or financing. Assume that Texas Rex’s beginning cash balance is $5200. The company requires a $1000 minimum cash balance…
5. A sales manager has 30 representatives. She receives a commission of 20% from her own sales and 5% override. During the month of January, she made sales amounting to P70,000 and her representatives made P140,000. What were her total earnings? 6. Suppose the sales tax rate of Pagadian City is 7% of the purchase price. If the price of the digital camera is P 24,700, how much sales tax must be paid?
Company Big Shoes sells oversized adult shoes. 52.50% of its sales are collected in cash, with 2.75% discount; 18.50% of its sales are 30-day credit sales and cash will be collected one month later; the rest of sales are 60-day credit sales and cash will be collected two months later. Big Shoes' current month sales is $600.00 million dollars, last month's sales was $510.00 million and sales from two months ago was $500.00 million. How much cash will the company collect in total this month? Note: your answer should be in millions of dollars.
Please answer all both. ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order tendays-worth of inventory.1. What would the average number of boxes be if the economic order quantity was used (excluding safety stock)? Round off to two decimal places.2. How much would the total inventory related (ordering plus carrying) costs be if the economic order quantity was followed (excluding safety stock)?
Jamestown Industries sells $48,000 in gift cards and expects 20% breakage. Cost of goods sold is 25% of each gift card. When the expected gift cards are redeemed, how much cost of goods sold will Jamestown record? O $12,000 $24,000 O $10,000 O $9,600
1. A company uses 1,500 units of Zeron per year. Each unit has an invoice cost of P222, including shipping costs. Because of the volatile nature of Zeron, it costs P860 for liability insurance on each shipment. The costs of carrying the inventory amount to P65 per item per year exclusive of a 20 percent cost of capital. Other order costs amounts to P18 per order. At present, the company orders 250 units at a time. What is the annual cost of the company's current order policy? 2. Summer Company has annual fixed costs of P90,000. This year, it recorded profit of P30,000 which is 10% of its sales. In the coming year, sales volume is expected to increase by P200,000 and the profit ratio will go up to 22%. What is Summer's break even sales ratio in the coming year? 3. Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit.…
Bulldogs Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. What is the average amount of accounts receivable? (Use 360-day year) The annual demand of Bulldogs Inc. sole product totaled 450,000 units. Due to uncertainty in supply of items, the maximum possible lead time for the orders is 2 weeks and 1 day. A safety stock of 6,250 units is determined. What is the normal lead time? (Use 360 days)
1. Gxsport is a small business manufactures sportswear focusing on tracksuits. Gxsportperform very well in 2021 with yearly sales amounting to RM630,000, equivalent to 12,600pieces sold. For the 1st quarter of 2022, the sales are predicted to increase by 7% ascompared to 2021’s sales due to the raised of awareness for a healthy lifestyle.The price of the tracksuit is RM50 per piece. The labour rate is RM7 per hour and eachpiece of tracksuit requires 0.4 hours to make. Manufacturing overheads are charges atRM1.50 per piece. The inventory is expected to have a balance of 500 pieces of tracksuitsas at 1st January 2022 and increase by 10% as at 31st March 2022. 1. Calculate the production budget (in unit) for the 1st quarter 2022 (1st January to 31st March2022).
ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order ten-days-worth of inventory. 1. What is the annual demand for the boxes of candles? And why? a. 137,500 b 125,000 c. 250,000 d. 100,000