7)14% - XYZ Corporation is preparing a master budget for 2024. Sales for the year are expected to total 200,000 units. Quarterly sales in units are 20%, 25%, 30%, and 25% respectively. The sales price is expected to be $50 per unit for the first 3 quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2024 are expected to be 10% higher than the budgeted sales volume for the first quarter of 2023. For production purposes, management desires to maintain ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Beginning finished goods on Jan. 1, 2024, are 30,000 units. For production purposes, two pounds of raw material are required for each finished product. Management's target for desired ending inventory of Materials in pounds is 20% of desired ending inventory of finished goods for the quarter. Beginning inventory on January 1,2024 is4000 pounds.
7)14% - XYZ Corporation is preparing a master budget for 2024. Sales for the year are expected to total 200,000 units. Quarterly sales in units are 20%, 25%, 30%, and 25% respectively. The sales price is expected to be $50 per unit for the first 3 quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2024 are expected to be 10% higher than the budgeted sales volume for the first quarter of 2023. For production purposes, management desires to maintain ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Beginning finished goods on Jan. 1, 2024, are 30,000 units. For production purposes, two pounds of raw material are required for each finished product. Management's target for desired ending inventory of Materials in pounds is 20% of desired ending inventory of finished goods for the quarter. Beginning inventory on January 1,2024 is4000 pounds.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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