Need help with this accounting questions A furniture manufacturer produces chairs that each require 3 yards offabric. Company policy requires maintaining an ending inventory of 25%of next month's raw material requirements. Production is planned asfollows:.November: 8,000 chairs⚫ December: 9,000 chairs⚫ January: 7,500 chairsFor the month of December, what will be the required fabric purchasesand ending inventory in yards?

Step 1:First, calculate the required ending inventory in yards for the month of December: Required…

Answered: A furniture manufacturer produces…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): 36,000 October 26,000 82,000 November 12,500 September 51,000 December 13,000 July August The selling price of the beach umbrellas is $15 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale. 65% in the month following sale 5% uncollectible Sales for June totaled $465,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's…
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Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows: July Aug. Sept. Oct. Nov. Dec. Expected unit sales ......... 12,000 15,000 10,000 8,000 7,000 11,000 Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25% of the next month's production requirements. Mate also likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Required: How many ounces of plastic resin should Mate plan on purchasing during the month of October?
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes: Daytripper: 4,000 backpacks in July, 4,400 backpacks in August Excursion: 2,400 backpacks in July, 1,800 backpacks in August Teton's policy is to maintain ending inventories at 5% of what is expected for the next month. What is the budgeted level of production in July for both styles? Select one: a. 4,420 Daytripper backpacks and 1,770 Excursion backpacks b. 3,980 Daytripper backpacks and 2,430 Excursion backpacks c. 4,000 Daytripper backpacks and 2,400 Excursion backpacks ○ d. None of these options are correct. e. 4,020 Daytripper backpacks and 2,370 Excursion backpacks
RelyaTech Corporation plans to sell 31,000 units during June. RelyaTech has 12,000 units on hand at the start of the month, and plans to have 13,000 units on hand at the end of the mon.... Q) How many units must RelyaTech produce during the month to satisfy its needs above? Multiple Choice 32,000 43,000 O 44,000 O 30,000
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Acme Gears produces gear boxes. The company has projected sales of 45,000 gear boxes for the month. Each gear box requires five gears. The company has projected beginning inventory of 22,000 gears and it plans to have 5% less than that in ending inventory. Production of one gear takes 0.5 pounds of raw material. What are the standard pounds of raw material needed for the month to meet production and achieve the desired inventory reduction? a. 113,050 pounds b. 117,842 pounds c. 112,500 pounds d. 111,950 pounds

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