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1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: 1*Quarter – 15,000 2nd Quarter – 25,000 3rd Quarter - 35,000 4 Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1"Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases production budget expressed in quantities to be purchased. b. Prepare a purchases production budget expressed in peso values. (Hint. multiple units by the amount)

1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: 1*Quarter – 15,000 2nd Quarter – 25,000 3rd Quarter - 35,000 4 Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1"Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases production budget expressed in quantities to be purchased. b. Prepare a purchases production budget expressed in peso values. (Hint. multiple units by the amount)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows:

1st Quarter – 15,000

2nd Quarter – 25,000

3rd Quarter - 35,000

4th Quarter – 40,000

Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month’s ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00.

a. Prepare a purchases/production budget expressed in quantities to be purchased.

b. Prepare a purchases/production budget expressed in peso values.

(Hint: multiple units by the amount)

< > Q Search Activity O Business Finance 20 Act 1.docx Close Word EE Immersive Reader O Open in Desktop App E Print P Find Business Finance 20 Act 1 ... Chat ACTIVITY 1: Teams Solve the following problems. Create a table for therequired budget. Handwritten in a bondpaper/pad Assignments раper. 1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: Calendar Calls 1st Quarter – 15,000 Files 2nd Quarter – 25,000 3rd Quarter - 35,000 4th Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases/production budget expressed in quantities to be purchased. b. Prepare a purchases/production budget expressed in peso values. (Hint. multiple units by the amount) Apps Help Page 1 of 1 100% Give Feedback to Microsoft 10:05 pm P Type here to search 30 O O G 4) O ENG 24/11/2020 田
Transcribed Image Text:< > Q Search Activity O Business Finance 20 Act 1.docx Close Word EE Immersive Reader O Open in Desktop App E Print P Find Business Finance 20 Act 1 ... Chat ACTIVITY 1: Teams Solve the following problems. Create a table for therequired budget. Handwritten in a bondpaper/pad Assignments раper. 1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: Calendar Calls 1st Quarter – 15,000 Files 2nd Quarter – 25,000 3rd Quarter - 35,000 4th Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases/production budget expressed in quantities to be purchased. b. Prepare a purchases/production budget expressed in peso values. (Hint. multiple units by the amount) Apps Help Page 1 of 1 100% Give Feedback to Microsoft 10:05 pm P Type here to search 30 O O G 4) O ENG 24/11/2020 田
< > Q Search Activity O Business Finance 20 Act 1.docx Close Word EE Immersive Reader O Open in Desktop App E Print P Find Business Finance 20 Act 1 ... Chat ACTIVITY 1: Teams Solve the following problems. Create a table for therequired budget. Handwritten in a bondpaper/pad Assignments раper. 1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: Calendar Calls 1st Quarter – 15,000 Files 2nd Quarter – 25,000 3rd Quarter - 35,000 4th Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases/production budget expressed in quantities to be purchased. b. Prepare a purchases/production budget expressed in peso values. (Hint. multiple units by the amount) Apps Help Page 1 of 1 100% Give Feedback to Microsoft 10:05 pm P Type here to search 30 O O G 4) O ENG 24/11/2020 田
Transcribed Image Text:< > Q Search Activity O Business Finance 20 Act 1.docx Close Word EE Immersive Reader O Open in Desktop App E Print P Find Business Finance 20 Act 1 ... Chat ACTIVITY 1: Teams Solve the following problems. Create a table for therequired budget. Handwritten in a bondpaper/pad Assignments раper. 1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: Calendar Calls 1st Quarter – 15,000 Files 2nd Quarter – 25,000 3rd Quarter - 35,000 4th Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases/production budget expressed in quantities to be purchased. b. Prepare a purchases/production budget expressed in peso values. (Hint. multiple units by the amount) Apps Help Page 1 of 1 100% Give Feedback to Microsoft 10:05 pm P Type here to search 30 O O G 4) O ENG 24/11/2020 田
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