Benham Foundries manufactures metal components. The inventory policy at Benham is to hold inventory equal to 145 percent of th average monthly sales for its main product. Sales for the main product for the following year are expected to be 450,000 units. Bas on the inventory policy, the budget calls for the production of 420,000 units. Required: What is the beginning inventory of the main product?

Benham Foundries manufactures metal components. The inventory policy at Benham is to hold inventory equal to 145 percent of th average monthly sales for its main product. Sales for the main product for the following year are expected to be 450,000 units. Bas on the inventory policy, the budget calls for the production of 420,000 units. Required: What is the beginning inventory of the main product?

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

Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?
Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: April 127,000 May 137,000 June 153,000 July 127,000 At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials.Yummy Foods’ budgeted purchases for raw materials (in pounds) during April should be:
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 36,000 17,000 98,000 51,000 17,000 62,000 Required: 1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased. 1. Required production in units 2. Raw material purchases in units cBook Pro 6) U G K C V. N
Manji
The beginning inventory is expected to be 3,100 cases. Expected sales are 13,300 cases, and the company wishes to begin the next period with an inventory of 2,100 cases. The number of cases the company must purchase during the month is
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.
Trailers Company expects to sell 6,500 units for $155 each for a total of $1,007,500 in January and 2,300 units for $200 each for a total of $460,000 in February. The company expécts cost of goods sold to average 50% of sales revenue, and the company expects to sell 5,000 units in March for $200 each. Trailers' target ending inventory is $20,000 plus 50% of the next month's cost of goods sold. Prepare Trailers' inventory, purchases, and cost of goods sold budget for January and February. Trailers Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases 503750 135000 638750 February 230000 520000 750000
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 522,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 544,000 units, and, in year 2, it expects to sell 648,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year is expected to be only 13,000 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 19,250 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month’s sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished coaster for the coming year. b. Compute the required amount of cork to be purchased for the coming year. (540,000 units for a is incorrect…
King purchases two components for its primary product. They need 3 of Component A and 2 of Component B for each unit of the primary product. Component A costs $3; Component B costs $5. Other facts: Forecasted Primary Product Production: January: 19,500 units February: 19,600 units March: 23,000 units April: 27,000 units Ending component inventory should equal 20% of next month’s production needs. Assume December’s ending inventory met this requirement. Calculate purchases for both Components in both units and dollars by month for Q1.