Raya PKP Bhd. manufactures lamps. The following are the details of their operation during 2020: Average monthly market demand 2,000 lamps Ordering cost RM200 per order Inventory carrying cost RM200 per lamp per annum Cost of lamps RM1000 per lamp Minimum usage 50 lamps per week Maximum usage 200 lamps per week Lead time to supply 4 - 6 weeks

Raya PKP Bhd. manufactures lamps. The following are the details of their operation during 2020: Average monthly market demand 2,000 lamps Ordering cost RM200 per order Inventory carrying cost RM200 per lamp per annum Cost of lamps RM1000 per lamp Minimum usage 50 lamps per week Maximum usage 200 lamps per week Lead time to supply 4 - 6 weeks

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:
How many units are estimated to be sold it Skyline. Inc., has a planned production of 900,000 units, a desired beginning inventory of 160,000 units, and a desired ending inventory of 100,000 units?
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Al Khalid LLC are the manufacturers of Lamps. The following are the details of their operation during 2020. Average monthly market demand is 2,000 lamps, ordering cost is RO 200 per order, inventory carrying cost is 20 percent per annum, cost of lamps is RO 1,000 per lamp, normal usage is 100 lamps per week, minimum usage is 50 lamps per week, maximum usage is 200 lamps per week and lead time to supply 4 -10 weeks. You are required to calculate the maximum level of stock. a. 1902 units b. 1863 units c. 1920 units d. 1302 units
Oster Company Ltd. manufactures dusk to dawn lamps. The following are the details of their operation during 2021: Average monthly market demand 2,000 lamps Ordering costs $ 200 per order Inventory carrying costs 20% per annum Cost of lamps $ 1000 per lamp Normal usage 100 lamps per week Minimum usage 50 lamps per week Maximum usage 200 lamps per week Lead time to supply 4 - 6 weeks Compute: Economic order quantity
Tamarisk Inc is a company that manufactures and sells a single product. Unit sales for each of the 4 quarters of 2020 are projected as follows: q1 = 96,000 units q2 = 180,000 units q3 = 660,000 units q4 = 144,000 annual total = 1,080,000 units Tamarisk incurs variable mfg costs of $0.40 per unit and variable non-mfg costs of $0,35 per unit. Tamarisk will incur fixed mfg costs of $864,000 and fixed non-mfg costs of $1,296,000. Tamarisk will sell its product for $4 per unit. Compute Tamarisk's profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches.
Oster Company Ltd. manufactures dusk to dawn lamps. The following are the details of their operation during 2021: Average monthly market demand 2,000 lamps Ordering costs $ 200 per order Inventory carrying costs 20% per annum Cost of lamps $ 1000 per lamp Normal usage 100 lamps per week Minimum usage 50 lamps per week Maximum usage 200 lamps per week Lead time to supply 4 - 6 weeks Compute: What tradeoffs in costs are involved in computing the Economic Order Quantity?
JBL expects to sell 7,000 units of wireless earbuds this year at P7,199.00 each. What is the projected sales revenue? ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume?