Doxy company is considering its forthcoming projections for budget purposes. Doxy's projected sales for next year, and beginning andending inventory data are as follows:SålesBeginning inventoryDesired ending inventory50,000 units4,000 units8,000 units.The selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of rawmaterials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.According to Doxys' production budget, how many units should be produced?O a. 54,000O b. 46,000O C.62,000O d. 38,000.some other figureClear my choiceO Type here to search立

Estimated Production requirement = Estimated Sales + Desired ending inventory - Beginning inventory

Answered: Doxy company is considering its…

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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Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,530 3,815 4,530 4,120 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $2.80 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,673 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted production for April, May, and June. Note: Do not round your intermediate calculations and round your final answers to the nearest whole number. June Budgeted Production (Units) April May
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1. WFU Corporation expects the unit sales of Product MSA to increase by 10%, while Product MA will increase by 5% of last year's sales. The company will increase the price of Product MSA by $10, while Product MA will remain the same. Prepare the budgeted revenue for the upcoming year, 20Y6 with the information below for 20Y5. Product MSA Product MA 2. WFU Corporation has a desired ending inventory of 5% of the upcoming year's sales for each year. In 20Y7, the company expects to sell 20,000 of Product MSA and 12,000 of Product MA. Prepare the company's production budget for 2016. 3. Each finished good of Product MSA and Product MA requires two materials, Product M and Product A, which are measured in pounds. Product M costs $7.50 per pound, and Product A costs $5.00 per pound. The required pounds of material per finished good and beginning and ending inventories are shown. Prepare the 20Y6 direct materials purchases budget. Product MSA Product MA Beginning inventory Ending inventory…
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