Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. requires 2 kilos of raw material, which costs Rs.3 a kilo. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows: Budgeted Sales in Units Selling Price July . . . . . . . . . . . .. 35,000 10 August . . . . . . . . . . 40,000 12 September . . . . . .. 50,000 14 October . . . . . . . . . 30,000 15 November . . . . . . . 20,000 15 December . . . . . . .. 10,000 17 Note: No need to enter currency symbol and comma just type numbers with nearest round off (for example: 10000 or 10000.65=10001) Find a)Calculate the sales units for the month of July Calculate the sales units for the month of August Calculate the sales units for the month of September

Name: Pearl Products Limited of Shenzhen, China, manufactures and distribute
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 20P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. requires 2 kilos of raw material, which costs Rs.3 a kilo. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows: Budgeted Sales in Units Selling Price July . . . . . . . . . . . .. 35,000 10 August . . . . . . . . . . 40,000 12 September . . . . . .. 50,000 14 October . . . . . . . . . 30,000 15 November . . . . . . . 20,000 15 December . . . . . . .. 10,000 17 Note: No need to enter currency symbol and comma just type numbers with nearest round off (for example: 10000 or 10000.65=10001) Find a)Calculate the sales units for the month of July Calculate the sales units for the month of August Calculate the sales units for the month of September Calculate the sales units for the month of October Calculate the sales units for the month of November Calculate the sales units for the month of December Calculate the sales budget for the month of July b)Calculate the sales budget for the month of August Calculate the sales budget for the month of September Calculate the sales budget for the month of October Calculate the sales budget for the month of November Calculate the sales budget for the month of December Calculate the Closing Finished good for the month of July Calculate the Closing Finished good for the month of August C) Calculate the Closing Finished good for the month of September Calculate the Closing Finished good for the month of October Calculate the Closing Finished good for the month of November Calculate the Production budget for the month of July Calculate the Production budget for the month of August Calculate the Production budget for the month of September Calculate the Production budget for the month of October D) Calculate the Production budget for the month of November Calculate the Closing Raw Material for the month of July Calculate the Closing Raw Material for the month of August Calculate the Closing Raw Material for the month of September Calculate the Purchase budget for the month of July.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.