Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the nextmonth's sales as ending inventory. How many units should Clark produce during June?101059295Not enough information to determine10750 A company's planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the companybudgeted the following manufacturing overhead costs:Variable:Indirect materialsIndirect laborFactory suppliesO $380800$500800FixedO $476800O $476000$170000 Depreciation $60000280000 TaxesA flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of1000026000 Supervision 50000

Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…

Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750

Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

See similar textbooks

Related questions

Q: Carmen Company sells jar candles. The sales forecast (units) for the coming months is April May June…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: 4. What if November production was 56,000 units, costs were stable, and sales were 57,000 units?…

A: Under variable costing system, fixed manufacturing overhead is considered as period cost and same is…

Q: Young Incorporated sells denim jeans. The sales forecast (units) for the coming months is April May…

A: Budgeting: Budgeting means forecasting the future to determine future income and expenses.

Q: Cherboneau Novelties produces drink coasters (among many other products). During the current year…

A: It is also known as management accounting or cost accounting.Managerial Accounting refers to…

Q: Varto Company has 9,600 units of its product in inventory that it produced last year at a cost of…

A: Incremental gain refers to the amount that is more than the regular amount i.e. an increase in the…

Q: A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales for the first five months…

A: The budget is prepared to estimate the requirements for the future period.

Q: Terrence Corporation plans to sell 44,000 units of its single product in March. The company has…

A: 43,600Explanation:To determine how many units Terrence Corporation plans to produce during March, we…

Q: Gadubhai

A: The objective of the question is to calculate the amount of leather purchases in August for Gadubhai…

Q: I need help with question

A: Given information:Beginning inventory: $85,000Desired ending inventory: $45,000Net sales:…

Q: 9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and…

A: The objective of the question is to determine the amount by which Castle TV should write down the…

Q: Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory…

A: Total Boxes = 48,000 Cost per Box = P12 Inventory carrying cost = 20% Safety stock = 2,400 Order per…

Q: Varto Company has 7,000 units of its product in inventory that it produced last year at a cost of…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: What is the food inventory turnover for 2020? The Robot Lounge's beginning and ending inventory for…

A: Here The cost of goods sold can be calculated as : COGS = Beginning inventory + food purchases -…

Q: Cushion Company manufactures foam cushions. The number of cushions to be produce- foam cushions to…

A: The purchase Budget is prepared to estimate the number of units to be purchased during the period.…

Q: Please give answer about this question

Q: Blizzard, LLC manufactures snowboards. BLLC began 2020 with an inventory of 250 boards. During the…

A: Variable costing is a method of costing that considers variable costs while determining the cost of…

Q: Why will the net income go up by $2? Help me make sense of this problem

A: The objective of this question is to understand the impact of a sale on the reported net income of…

Q: Widgets Company, a company that sells only one type of widget, had a September of 11 units, at…

A: FIFO states that the inventory purchased first would be sold first by the company. Whereas, LIFO…

Q: Varto Company has 9,600 units of its product in inventory that it produced last year at a cost of…

A: Differential analysis is a management accounting technique in which we assess only the changes in…

Q: The Ace Battery Company has forecast its sales in units as follows: January 1,700 May February 1,550…

A: Production budget is the budget which is prepared to estimate the number of units to be produced for…

Q: Sheridan Company plans to sell 12000 lawn chairs during May, 9700 in June, and 6000 during July. The…

A: Units produced means the goods that are produced by the entity during a period. It is number of…

Q: Give me correct answer with explanation.vi Don't upload any image please

A: The objective of the question is to prepare the inventory, purchases, and cost of goods sold budget…

Q: The following information has been made available of Carson Sdn E year 2021 are as follows. 1) The…

A: Solution: Production budget for first half of the year is as under:

Q: Varto Company has 11,200 units of its product in inventory that it produced last year at a cost of…

A: In order to perform sell-as-is or process further analysis, we should compare incremental revenue…

Q: Required information [The following information applies to the questions displayed below.] Shadee…

A: Lets understand the basics.A budgeted income statement refers to the calculation of net income…

Q: RelyaTech Corporation plans to sell 31,000 units during June. RelyaTech has 12,000 units on hand at…

A: The question is based on the concept of Cost Accounting.Units produced during the period along with…

Q: Pacific Company starts the year with a beginning inventory of 3,700 units at $5 per unit. The…

A: FIFO method is an inventory valuation method where inventory that was purchased first will be used…

Q: pany plans to sell 220 units. The selling price per unit is $24. There are 50 units in the beginning…

A: A budget is defined as an estimate of revenue income and expenses for a set period of time. The…

Q: Antonio Banderos & Scarves makes headwear that is very popular in the fall-winter season. Units sold…

A: The value of products still on hand and available for purchase by a company at the end of an…

Q: Benham Foundries manufactures metal components. The inventory policy at Benham is to hold inventory…

A: Lets understand the basics.Units available for sale are the units in beginning inventory and the…

Q: 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units?…

A: Cost of ending inventory under absorption costing includes the cost of direct materials, direct…

Q: Corey’s Campus Store has $4,000 of inventory on hand at the beginning of the month. During themonth,…

A: Given information is: Corey’s Campus Store has $4,000 of inventory on hand at the beginning of the…

Q: 62. The following are the estimates sales of Philips Co. for about 8 months that is ending on…

A: Given that, Finished goods closing stock of every month = 50% of estimated sales for next month.…

Q: A company starts the year with twenty units of inventory costing $20 each. In January, ten of these…

A: Particulars Units Price per unit Total value Beginning inventory 20 $20 $400…

Q: Gadubhi

A: The objective of the question is to calculate the amount of leather purchases in August for Gadubhi…

Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May…

A: Budget is the plan of the company's spending based on its income and expenses. It estimates the…

Q: January 1,100 May February 950 June March April 900 July 1,400 Ace always keeps an ending inventory…

A: The formula used to determine the units produced is as follows:Units to be produced = Expected Sales…

Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…

A: The ending inventory is calculated as difference between units available for sale and units sold.

Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…

A: Ending inventory units are calculated as difference between units available for sale and units sold.…

Q: Al Anwar ceramics, Oman estimated the sales as follows June – 2,000 units July – 3,000 units August…

A: The production budget is required to be prepared by the management to find out the units to be…

Q: Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales…

A: The budget is prepared to estimate the requirements for the future period. The production budget is…

Q: Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods…

A: Purchases for a Period = Cost of Goods Sold for the Period + Inventory at the Ending of the Period -…

Q: Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires…

A: Budgeted sales is based on Budgeted sales units multiplied by Selling price per unit.Budgeted…

Question

Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next
month's sales as ending inventory. How many units should Clark produce during June?
10105
9295
Not enough information to determine
10750

A company's planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company
budgeted the following manufacturing overhead costs:
Variable:
Indirect materials
Indirect labor
Factory supplies
O $380800
$500800
Fixed
O $476800
O $476000
$170000 Depreciation $60000
280000 Taxes
A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of
10000
26000 Supervision 50000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

Step 2 Working Note

Step 3 Working Note

Step 4 Working Note

Step 5 Final Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sheridan Company plans to sell 12000 lawn chairs during May, 9700 in June, and 6000 during July. The company keeps 15% of the next month’s sales as ending inventory. How many units should Sheridan produce during June? a. 10255 b. 9145 c. Not enough information to determine d. 10600
Sunland Company plans to sell 11000 lawn chairs during May, 6700 in June, and 11000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Sunland produce during June? 07345 O Not enough information to determine 8350 O 6055
Ecology 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 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? F2 -0- (@ Jan. 2 2,500 F3 0+ Feb. 3 3,100 March. April. 3,700 F4 2,800 F5 F6 % 5 F7 6 2 F8 7
Colorado Nursery plans to sell 380 plants during April and 240 units in May. Coronado keeps 25% of the next month's sales as ending inventory. How many units should Coronado produce during April?
Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 540 sun shades in May and 440 in June. Each shade sells for $144. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. Show Transcribed Text Prepare Shadee's direct labor budget for May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Direct Labor Cost May Show Transcribed Text 2. Prepare Shadee's manufacturing overhead budget for May and June. Show Transcribed Text June Budgeted…
Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 610 sun shades in May and 430 in June. Each shade sells for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 X Answer is not complete. Prepare Shadee's manufacturing overhead budget for May and June. Budgeted Manufacturing Overhead May $90,009,000 X
Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 610 sun shades in May and 350 in June. Each shade sells for $144. Shadee's beginning and ending finished goods inventories for May are 70 and 60 shades, respectively. Ending finished goods inventory for June will be 55 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $13 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June.
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…
A company plans to sell 220 units. The selling price per unit is $24. There are 50 units in the beginning inventory, and the company would like to have 20 units in ending inventory. How many units should be produced for the coming period? 250 200 230 220 None of these
[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays itsworkers $8 per hour.Required:Determine Shadee's budgeted direct labor cost for May and June. (Do not round yourintermediate values. Round your answers to 2 decimal places.)$ $May JuneBudgeted Direct Labor Cost 0.00 0.0
Give typing answer with explanation and conclusion
[The following information applies to the questions displayed below.] Shadee Corporation expects to sell 610 sun shades in May and 430 in June. Each shade sells for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: • Selling costs are expected to be 8 percent of sales. • Fixed administrative expenses per month total $1,200. Required: Prepare Shadee's budgeted…