Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 521,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 542,000 units, and, in year 2, it expects to sell 636,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. Howeve because of production issues, the ending inventory in the current year is expected to be only 12,500 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 19,000 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. a. Total targeted production in units b. Materials to be purchased in pounds units pounds I

Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 521,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 542,000 units, and, in year 2, it expects to sell 636,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. Howeve because of production issues, the ending inventory in the current year is expected to be only 12,500 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 19,000 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. a. Total targeted production in units b. Materials to be purchased in pounds units pounds I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 525,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 550,000 units, and, in year 2, it expects to sell 684,000 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 (year 0) is expected to be only 14,500 units. Each unit requires 0.5 pound of cork. At the end of the current year (year 0), management expects to have 20,000 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 during the coming year (year 1). Sales and production take place evenly throughout the year. Required: Compute the total targeted production of the finished coaster for the coming year. Compute the required amount of cork to be purchased for…
The Chani Company had the following sales forecast: January February March April 440 500 380 300 The company buys products for $320 each and then resells them for $430 each and pays for operating expenses of $2,100 in rent and $6,300 in salaries each month. The company maintains ending inventory of 20% of next month's sales and had 130 units of inventory at the end of last year. For January, what total dollar amount would appear in the company's purchases budget?
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pos Ibie Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January February 22,000 39,800 March 28,600 April 44,200 Finished goods inventory at the end of December is 6,900 units. Target ending finished goods inventory is 10% of the next month's sales. How many mattresses should be produced in the first quarter of 2019? A. 92,340 mattresses B. 68,840 mattresses TE O C. 87,920 mattresses 1 a O D. 57,760 mattresses Mi F Ju fir https: Cha The es sales 4 Missing Calculator Next http://mi tho ?3 O O O O
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Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Select one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choice