**Estimating Required Production Units for January***Question:*Assume a company's estimated sales for January, February, and March are 41,000 units, 42,000 units, and 40,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month's unit sales. What is the required production in units for January?*Multiple Choice:*- 41,150 units- 47,300 units- 40,850 units- 41,850 units*Explanation:*To determine the required production for January, first calculate the ending inventory for that month, which should be 15% of February's sales.- February's sales = 42,000 units- Ending inventory for January = 15% of 42,000 units = 6,300 unitsNext, calculate the beginning inventory for January, which is 15% of January's sales:- January's sales = 41,000 units- Beginning inventory for January = 15% of 41,000 units = 6,150 unitsFinally, use the formula for calculating required production:\[ \text{Required Production} = \text{Sales} + \text{Ending Inventory} - \text{Beginning Inventory} \]\[ \text{Required Production} = 41,000 + 6,300 - 6,150 = 41,150 \text{ units} \]Therefore, the correct answer is **41,150 units**.

Desired ending inventory for January = Estimated sales for February x 15% = 42000 x 15% = 6300 unitsBeginning inventory for January = Estimated sales for January x 15% = 41000 x 15% = 6150 units Required production in January = Estimated sales for January + Desired ending inventory for January - Beginning inventory for January = 12000+6300-6150 = 41,150 units

Business

Accounting

Assume a company's estimated sales for January, February, and March are 41,000 units, 42,000 units, and 40,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month's unit sales. What is the required production in units for January? Multiple Choice 41,150 units 47,300 units 40,850 units 41,850 units

Assume a company's estimated sales for January, February, and March are 41,000 units, 42,000 units, and 40,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month's unit sales. What is the required production in units for January? Multiple Choice 41,150 units 47,300 units 40,850 units 41,850 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Month April May June July August Sales in Units 3,500 3,805 4,570 4,125 3,988 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials costs $2.60 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,653 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May Complete this question by entering your answers in the tabs below. Required 11 Required 2 Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answers to the nearest whole number.) May Budgeted Production (Units) April Requi June Required 2 >
Need 1,2 please
Please do not give solution in image format thanku
INFORMATION: Brait Limited produces a single product and forecasted the following for the first three months of the year: January March February 2 400 Sales (units) 2 200 2 600 The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. Material and labour requirements are as follows: Material 2 kg per unit @ R60 per kg Labour 3 hours per unit Material inventory levels were as follows: December 1 100 Closing inventory (kg) January 1 250 REQUIRED: The total material purchase cost for January is: A. R276 000 B. R408 000 C... 8285 000 February 1 400 March 1 300
None
QUESTION 2 Answer the questions from the information provided. 2.1 Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August. INFORMATION 2.2 2.3 The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each month equal to 20% of the current month's budgeted sales and 30% of the following month's budgeted sales. Study the information provided below and calculate the expected value of closing inventory as at 31 December 2022, if the FIFO method of inventory valuation is used. INFORMATION The following information was supplied by Sunbeam Manufacturers for 2022 in respect of its finished goods: Inventory on 01 January Cost of production of finished goods manufactured Cost of goods sold Sales value of the goods sold Use the information provided below to…
2. Muddy Waters Industries has projected sales of its product for the next 6 months: 300 units January February 700 units March 1,000 units April Мay 1,000 units 400 units June 300 units Each unit is sold at $40 per unit. The cost of goods sold is typically 40% of the month's budgeted sales revenue. Muddy Waters tries to maintain a Finished Goods ending inventory equal to the 60% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. Prepare a purchase budget for March, and April
Please do not give solution in image format thanku
Subject: acounting
None
sd subject-Accounting
entory Management - Spring21 Time left 1:06:07 on A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and it costs OMR 2500 per unit to purchased. The cost of reordering is OMR 50 each order. The annual holding cost is OMR 660 per unit. Which economic order quantity policy, either round-up or round-down for inventory ordering to be used here to minimize total The corresponding order quantity will be ventory cost per year? of a. None is correct O b. 12 O C. 13 d. 14 O e. 15 FINISH ATTEMPT ...