The TESS Company has budgeted sales for the year as follows: Quarter 1 10,000 Quarter 2 12,000 Quarter 3 14,000 Quarter 4 16,000 Sales in units The ending inventory of finished goóds for each quarter should equal 25% of the next quarter's budgeted sales In units. The nished goods inventory at the start of the year is 2,500 unlts. Four pounds of raw materials arerequired for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory et the end of each quarter should equal 10% of the next quarter's production needs In matenal. Required: 1. How many unts should be produced in the third quarter? 2. How many pounds of materials should be purchased for the second quartee? WERSI

The TESS Company has budgeted sales for the year as follows: Quarter 1 10,000 Quarter 2 12,000 Quarter 3 14,000 Quarter 4 16,000 Sales in units The ending inventory of finished goóds for each quarter should equal 25% of the next quarter's budgeted sales In units. The nished goods inventory at the start of the year is 2,500 unlts. Four pounds of raw materials arerequired for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory et the end of each quarter should equal 10% of the next quarter's production needs In matenal. Required: 1. How many unts should be produced in the third quarter? 2. How many pounds of materials should be purchased for the second quartee? WERSI

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

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Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs 1.24 per pound, determine the direct materials purchases budget for January.
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