Question 5View PoliciesCurrent Attempt in ProgressBraker Manufacturing has a target of carrying closing monthly inventory equal to fifteen percent of next month'sprojected sales. If the current month's beginning inventory is 8,000 units and it expects to sell 50,000 units this monthand 45,000 units next month, how many units should it produce this month?t47,500 unitsO 48,750 unitsO 45,000 unitsO 50,000 unitshp2fo12insprt sc44deletehome&79backspacelockhomeKLenterNpauset shiftaltctriΣI

A Budget statement is a proper articulation of assessed income and costs dependent on tentative…

Answered: Question 5 View Policies Current…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter8: Budgeting

Section: Chapter Questions

Problem 2CMA

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Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.
Practice Problem 3.2ABC Company expects sales volume to be 15,000 units in the first quarter, increasing 50% in eachsucceeding quarter. Unit sales price is P55. To meet this sales requirement, the company plans tomaintain ending finished goods inventory of 20% of each quarter’s sales volume forecast, as wellas ending raw materials inventory of 10% of each quarter’s production requirements. On January1, finished goods inventory contains 1,500 units, while direct materials inventory contains 1,050units. The ratio between the final product and the raw materials is 1:3, at an anticipated cost of P3per unit of raw material. To create the product, the company expects to utilize 1 direct labor hour.It pays its laborers P5 per hour.ABC Company expects variable manufacturing overhead costs to fluctuate on the basis of directlabor hours, as follows:• Indirect materials P5• Indirect labor hours P3• Electricity P2Meanwhile, fixed manufacturing overhead costs for the year are as follows:• Rent…
Ch. 8 Homework 2 Please solve and explain the following problem Croy Inc. has the following projected sales for the next five months: MonthSales in UnitsApril 3,850May 3,875June 4,260July 4,135August 3,590 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $3.10 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,865 pounds. 1) Determine budgeted production for April, May, and June. 2) Determine the budgeted cost of materials purchased for April, May, and June
30. Delta’s policy is to keep 20% of next month’s sales in ending inventory. If sales in April are expected to be 5,800 units, and sales in May are expected to be 8,000 units, how many units should be produced in April? Multiple Choice a)5,360 b)3,040 c)some other answer d)6,240 e)8,560
Ch 8 Homework Question 9 Please answer and solve the problem below. Attached are the sales for Cory's Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $3.10 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,865 pounds. Required:1. Determine budgeted production for April, May, and June.2. Determine the budgeted cost of materials purchased for April, May, and June. (Round your answers to 2 decimal places.)
Question Sec –B Subjective Young Product produces Coat Racks. The projected sales for the first quarteris 100,000 Units of the coming year with Sales Price Rs 150 per unit and the beginning and endinginventory expected 8,000 & 12,000 Units respectively.The coat racks are molded & then painted. Each rack required 4 pounds of metal, which costs Rs 23 perpound. The beginning inventory of raw material is 4,000 pounds. Young Product wants to have 6,000pounds of metal in inventory at the end of quarter. Each rack produced requires 30 minutes of direct labortime, which is billed at Rs 90 per hours.Budgeted Fixed Over Head is Rs 500,000 on 100,000 unitsRequired: 1. Prepare a Sales Budget (in Value) for the first quarter. 2. Prepare a Production Budget (in units only) for the first quarter. 3. Prepare a Direct Materials Purchase Budget for the first quarter.4. Prepare a Direct Labor Budget for the first quarter. 5. Prepare an Income Statement as per Marginal & Absorption Costing. 6.…
16.66points eBook Item 1 Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 139,200 units. The following unit sales are budgeted during the rest of the year: second quarter, 232,000 units; third quarter, 391,000 units; and fourth quarter, 376,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 60% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
Q # 2) ABC produces Goods for resale at throughout America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows; First quarter 14,000 units Second quarter 6,000 units Third quarter 8,000 units Fourth quarter 4,000 units Unit sales are expected to increase 20 percent, and each unit is expected to sell for $1. The management prefers to maintain ending finished goods inventory equal to 10 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. The beginning inventory was 1000 units. Direct Materials Purchases Budget Information Each unit of product requires 1.5 pounds of direct materials per unit, and the cost of direct materials is $1 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of…
Q # 2) ABC produces Goods for resale at throughout America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows; First quarter 14,000 units Second quarter 6,000 units Third quarter 8,000 units Fourth quarter 4,000 units Unit sales are expected to increase 20 percent, and each unit is expected to sell for $1. The management prefers to maintain ending finished goods inventory equal to 10 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. The beginning inventory was 1000 units. Direct Materials Purchases Budget Information Each unit of product requires 1.5 pounds of direct materials per unit, and the cost of direct materials is $1 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of…
Question 7 Landon Inc. projected sales of 31,000 personal journals for 20Y6. The estimated January 1, 20Y6, inventory is 2,200 units, and the desired December 31, 20Y6, inventory is 3,000 units. What is the budgeted production (in units) for 20Y6?fill in the blank 1 units
Question 11 options: Answer the following, in the blank provided using the specified format. (For example: 40 days) A company's current revenue is $10,000,000 and accounts receivable are now $1,000,000. The sales manager estimates that sales should increase by 10% during the following year. The accounts receivable manager estimates that the new level of accounts receivable will remain unchanged. The companies current average collection period is ____.
QUESTION 5 A) A company sells product X & Y Sales for the year ended 2019 are: X: 5000 units @ ¢10 each Y: 3000 units @ ¢12 each The company expects to sell the following units in 2020: X: 6000 units @ ¢15 each Y: 4500 units @ ¢18 each Additional information: i) Budgeted opening stock X: 1000 units Y: 800 units Budgeted closing stock: X: 2000 units Y: 1500 units ii) Materials A and B are used to produce products X and Y based on the following ratio in order to produce one unit of X & Y Product Material A Material B X 3kg 2kg Y 2kg 1kg Purchase price ¢10 per Kg ¢12 per kg iii) Material A Material B Opening stock 8000 5000 Closing stock 6000 3500 (iv) The company has only one grade of labour and uses 3 hours to produce one unit of X 2 hours to produce one unit of Y Labour rate would be ¢20 per hour Required: Prepare the following budgets for 2020 Sales budget Production budget Direct Material usage budget Direct Material purchase budget Direct labour…

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