Bookworm Corporation maintains ending inventory for each month at 5% of the following month's sales. It predicted the following sales (in units) for the first four months of the coming year: January 2,000 February 2,400 April 2,800 March Sales (units) 3,000 How many units should be produced in March?
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- On January 1 the company had 330 widgets in finished good inventory. The company policy is to maintain an inventory of 15% of next montha sales. The company forecast the following sales: Jan. 2,200 Feb. 2,800 March 3,500 April 4,000 Determine the required production for January?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?Furniture, Inc., estimates the following number of mattress sales for the first four months of 2024: Month Sales January 10,000 February 14,000 March 13,000 April 16,000 Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month's sales. How many mattresses need to be produced in January 2024? A) 8,800 mattresses B) 11,200 mattresses C) 13,000 mattresses D) 14,200 mattresses
- All sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…Cave Hardware's forecasted sales for April, May, June, and July are $220,000, $260,000, $190,000, and $300,000, respectively. Sales are 70% cash and 30% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $55,000 plus 20% of the following month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are the cash collections budgeted for June at Cave Hardware? $267,000 $133,000 $211,000 $156,000MNO Company forecast sales in units for July to November as follows: Units JULY - 4000 aUGUST - 4300 SEPTEMBER - 4500 OCTOBER - 4700 NOVEMBER - 5000 MNO Company would like to maintain 200 units in its ending inventory at the end of each month starting July. Ending inventory for the month of June is 150 units. Beginning inventory at the start of January amounts to 100 units. 1. How many units should MNO Company produce for the month of July to fulfill the expected sales of the company?
- 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 isEcology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units O 3,010 O 3,100 O 3,190 O 2,830 O 3,700 Jan. 2,500 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Question 8 Feb. 3,100 March. 3,700 April. 2,800 F6 F7 F8FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box Direct material required per 100 boxes: Paperboard ($0.30 per pound) Corrugating medium ($0.15 per pound). Direct labor required per 100 boxes ($18.00 per hour). Indirect material Indirect labor Utilities Property taxes Insurance Depreciation. Total C $12,150 95,850 31,500 21,000 16,000. 33,500 $210,000 Total 40 pounds 30 pounds 0.25 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel. Advertising $115,500 23,500…
- Narai Co. has a desired ending inventory of 30% of the next months forecasted sales. In turn, their cost of goods sold is 60%, and their forecasted sales for the months of March, April, May, June, and July are as follows: $750,000, $880,000, $700,000, $800,000, and $900,000 respectively. Purchases for the months of February and March were $500,000 and $360,000 and their purchases are paid as follows: 10% during the month of the purchase 80% in the next month and the final 10% in the next month. Required: Prepare budget schedules for the months of April, May, and June for required purchases and also for disbursements for purchases.A June sales forecast projects that 8,000 units are going to be sold at a price of $11.00 per unit. The desired ending inventory of units is 12% higher than the beginning inventory of 900 units. Merchandise purchases for June are projected to include how many units? O 8,000 units O 8,108 units O 7,892 units O 9,008 units O 8,450 unitsJarash, Inc. anticipates sales of 121758 units, 150 000 units, and 160.000 units in July. August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in July? 181758 units