Cherboneau Novelties produces drink coasters (among many other products). During the current year (year O), the company sold536,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 572,000 units, and, in year 2, itexpects to sell 816,000 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 20,000 units.Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 22,750 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 takeplace 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 unitsb. Materials to be purchased in poundsunitspounds

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Answered: Cherboneau Novelties produces drink…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterC: Cases

Section: Chapter Questions

Problem 1C

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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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…
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…
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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…
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 530,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 560,000 units, and, in year 2, it expects to sell 744,000 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 17,000 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 21,250 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: 8. 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…
Please help me
Streeter Company produces plastic microwave turntables. Sales for the next year are expected to be 65,000 units in the first quarter, 72,000 units in the second quarter, 84,000 units in the third quarter, and 66,000 units in the fourth quarter. Streeter maintains a finished goods inventory at the end of each quarter equal to one half of the units expected to be sold in the next quarter. How many units should Streeter produce in the second quarter? Select one: a. 78,000 units b. 84,000 units c. 72,000 units d. 75,000 units
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