Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows:OctoberNovemberDecemberJanuary1,6502,6505,3004,30013,900If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventorybuildup.OctoberNovemberDecemberJanuaryThe production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out ofmerchandise. She will produce the 13,900 items at a level of 3,475 per month.a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Donot leave any empty spaces; input a 0 wherever it is required. Negative values should be indicated by a minus sign.)UnitssoldAntonio Banderos & ScarvesUnitsProducedChange ininventoryEndinginventory

The change in inventory is the difference between Units sold and produced.The ending inventory is…

1,650 2,650 5,300 4,300 13,900 production is used, it is assumed that inventory will directly matc ction manager thinks the above assumption is too optimistic and se. She will produce the 13,900 items at a level of 3,475 per mont he ending inventory at the end of each month? Compare the unit

1,650 2,650 5,300 4,300 13,900 production is used, it is assumed that inventory will directly matc ction manager thinks the above assumption is too optimistic and se. She will produce the 13,900 items at a level of 3,475 per mont he ending inventory at the end of each month? Compare the unit

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 9R: Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a...

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Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: October November December January 1,150 2,150 4,300 3,300 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no Inventory buildup. 10,900 The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 10,900 Items at a level of 2,725 per month. October November December January a. What is the ending Inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; Input a 0 wherever It is required. Negative values should be indicated by a minus sign.) October November December January Units sold Antonio Banderos & Scarves Total financing cost Units Produced Change in inventory b. If the inventory costs $4 per unit and…
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Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales 3,200 7,200 11,400 9,400 March April May June 31,200 Total units sold If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 31,200 units over four months at a level of 7,800 per month. a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. Ending Inventory March units April units May units June units
Antonio Banderos & Scarves makes headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: Monthly Unit Sales October 1,350 November 2,350 December 4,700 January 3,700 Total units sold 12,100 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, Antonio decides to go with level production to avoid being out of merchandise. He will produce the 12,100 items over four months at a level of 3,025 per month. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. Note: Leave no cells blank be certain to enter '0' wherever required. If the inventory costs $4 per unit and will be financed at the bank at a cost of 12 percent, what is the monthly financing cost and the total for the four months? (Use 1 percent as the monthly rate.) Note: Leave no cells blank be…
Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales March 3,100 April 7,100 May 11,200 June 9,200 30,600 Total units sold If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 30,600 units over four months at a level of 7,650 per month. a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. b. If the inventory costs $12 per unit and will be financed at the bank at a cost of 6 percent, what is the monthly financing cost and the total for the four months? (Use .5 percent as the monthly rate.)
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Supreme Bikes Inc. has the following sale for the spring and early summer season. A projection of units sold is as follows: March.................. 2,000 5,000 April....... May... June......... 7,000 6,000 Total 20,000 The company uses a level production to avoid being out of merchandise. He will produce the 20,000 bikes at a level production of 5,000 per month. A. What is the ending inventory at the end of each month? Compare the units so
Osage Incorporated has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May June Forecast: July August 5,300 units 7,800 units September 5,900 units October 5,800 units 6,900 units 6,600 units Required: a. The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 50% of the next month's sales. It is currently estimated that there will be 2,650 units on hand at the end of June. Calculate the number of units to be produced in each of the months of July, August, and September. b. Each unit of finished product requires 8 pounds of raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 80% of the next month's estimated usage. It is currently estimated that 25,000 pounds of raw materials will be on hand at the end of June. Calculate the number of pounds of raw materials to be purchased in each of the months of July and August.…
The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year:1st Quarter 2nd Quarter 3rd Quarter 4th QuarterBudgeted unit sales ............................ 8,000 7,000 6,000 7,000The company expects to start the first quarter with 1,600 units in finished goods inventory. Managementdesires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgetedsales. The desired ending finished goods inventory for the fourth quarter is 1,700 units.In addition, the beginning raw materials inventory for the first quarter is budgeted to be3,120 pounds and the beginning accounts payable for the first quarter is budgeted to be $14,820.Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to endeach quarter with an inventory of raw materials equal to 20% of the following quarter’s production needs.The desired ending inventory for the fourth quarter is 3,140 pounds. Management…
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MNO Company forecast sales in units for July to November as follows: Units JULY - 4000 aUGUST - 4300 SEPTEMBER - 4500 OCTOBER - 4700 NOVEMBER - 5000 MNO Company would like to maintain 200 units in its ending inventory at the end of each month starting July. Ending inventory for the month of June is 150 units. Beginning inventory at the start of January amounts to 100 units. 1. How many units should MNO Company produce for the month of July to fulfill the expected sales of the company?
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.