Beaver Company expects to sell 1,600 units of a finished goods product in January and 1,860 units in February. The company has 220 units on hand on January 1 and desires to have an ending inventory equal to 80% of the next month's sales. March sales are expected to be 2,030 units. Beaver's production budget February is units. O 1,680 O 2,010 O 1,836 O 1,774 O 1,996

Beaver Company expects to sell 1,600 units of a finished goods product in January and 1,860 units in February. The company has 220 units on hand on January 1 and desires to have an ending inventory equal to 80% of the next month's sales. March sales are expected to be 2,030 units. Beaver's production budget February is units. O 1,680 O 2,010 O 1,836 O 1,774 O 1,996

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

Cousin Eddy provides you with his sales forecast for the next four months: April May 750 June July 790 Sales (Units) 670 The company wants to end each month with ending finished goods Inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 268 units. Assume July's budgeted production is 700 units. In addition, each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 842 pounds. Assume direct materials cost $5 per pound. Required: For May, how many units must be produced? (Hint: This is your production budget) Submit your answer below 700 with all work submitted via email.
Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Budgeted sales units. Units to purchase July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales 0 0 0 Total required units Units to purchase Cost per unit Cost of merchandise purchases
Tasty Foods expects to have 20,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July: April 120,000 May June July 130,000 140,000 120,000 At the end of each month the company desires its ending finished goods inventory to be 20% of the next month's projected sales (in units). The budgeted production (in units) for Tasty Foods for May should be: A. 104,000. B. 128,000. C. 130,000. D. 132,000. E. 138,000. A O B C D E
Quetzaltenango Candle Inc. projected sales of 41,000 candles for March. The estimated March 1 inventory is 2,100 units, and the desired March 31 inventory is 5,000 units. Prepare a production budget report in units for Quetzaltenango Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Quetzaltenango Candle Inc. Production Budget For the Month Ending March 31 Line Item Description Units Sales 41,000 Estimated beginning inventory, March 1 2,100 X Total units available 43,100 X Expected units to be sold x -5,000 X Total units to be produced in March 38,100 X
Neon Inc. has a finished goods inventory of 20,000 units on July 1. The projected sales for July, August and September are 80,000 units, 90,000 units and 100,000 units, respectively. Its desired ending inventory is estimated as 20% of the current month’s budgeted sales. Determine the budgeted production for July. Group of answer choices 116,000 units 16,000 units 96,000 units 76,000 units
The following information applies to questions 25 and 26 The sales budget for Fred Limited contains the following information: October November December Units 300 550 700 $ (thousands) 75,000 165,000 210,000 Sales are all on credit, with 30% collected in the month of sale and 70% in the following month. Finished goods inventory at the end of each month should be 58% of the following month's sales requirements. Prepare a finished goods inventory budget and use it to answer Following Calculate the closing finished goods inventory, in units, for October. Calculate the required production, in units, for October.
Shadee Corporation expects to sell 630 sun shades in May and 320 in June. Each shade sells for $162. Shadee's beginning and ending finished goods inventories for May are 60 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades. Required: 1. Prepare Shadee's sales budget for May and June. 2. Prepare Shadee's production budget for May and June.
Spacely Sprockets' sales budget shows the following expected total sales: Month January February March April Sales $31,700 $41,700 $36,700 $31,700 The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 30% In the month of sale and 68% In the month following the sale, with the remainder being uncollectible and written off in the month following the sale. Required: a. Calculate budgeted accounts receivable at the end of each month from February through April. b. Calculate budgeted cash Inflows from collection of receivables for each month from February through April. Note: Round your Intermediate calculations and final answers to the nearest whole dollar amount. a. Budgeted accounts receivable Answer is not complete. b. Budgeted cash inflows from collection of receivables February March April S 17,752 S 23,352 $ 20,552
Lexi Company budgets unit sales of 1,510,000 in April, 1,210,000 in May, 320,000 in June, and 1,940,000 in July. Beginning inventory on April 1 is 604,000 units, and the company wants to have 40% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June. LEXI COMPANY Merchandise Purchases Budget April May June Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases $ $ $
ABC Company's budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units, respectively. ABC requires 40% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 5,520 units. Required: Calculate the number of units to be produced in June and July. Number of units June July