Ebony Products has budgeted sales for the year as follows: Q1 20,000 units; Q2 18,000 units; Q3 22,000 units; Q4 24,000 units. Ebony requires 25% of the next quarter's budgeted unit sales as ending finished goods inventory each quarter. The number of units budgeted to be produced in Q2 is: Multiple Choice 19,000 units. 22,500 units. 21,000 units. 19,500 units.

Ebony Products has budgeted sales for the year as follows: Q1 20,000 units; Q2 18,000 units; Q3 22,000 units; Q4 24,000 units. Ebony requires 25% of the next quarter's budgeted unit sales as ending finished goods inventory each quarter. The number of units budgeted to be produced in Q2 is: Multiple Choice 19,000 units. 22,500 units. 21,000 units. 19,500 units.

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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Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Raw material (grams) Each unit of finished goods requires 3 grams of raw material. The company plans to sell 630,000 units during the year. Multiple Choice The number of units the company would have to manufacture during the year would be: O O O 630,000 units 708,000 units Beginning Inventory 28,000 58,000 572,000 units Ending Inventory 78,000 48,000 680,000 units
Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows: Quarter 1= 22,500 units Quarter 2 = 19,000 units Quarter 3 = 17,000 units Quarter 4 = 24,000 units Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements. Canyon expects to have 50,000 pounds of direct materials on hand at the beginning of Quarter 1. What would be Canyon's budgeted direct materials purchases (in pounds) for the first quarter?
Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units for Next Quarter Sales Units First month Second month Third month Projected sales units 10,000 12,000 15,000 Desired ending inventory is determined to be 10% of the next month’s projected sales. What would be the budgeted production units during the second month of the quarter? Group of answer choices 12,300 units 13,200 units 11,700 units 13,500 units
Fairfield Company management has budgeted the following amounts for its next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 19. Fairfield Company's goal for the month is to earn a target operating income of $285,000. How many units must be sold to achieve this goal? (A)54,000 units (B) 55,500 units (C) 74,500 units (D) 33,300 units (2 marks) If Fairfield can reduce fixed expenses by $41,625, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? 20. (A) (B) $0.75 $2.78 (C) $0.53 (D) $0.25 (3 marks)
Consider the following budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory January 1, 2012, was expected to be $189,100; and work in progress inventory on December 31, 2012, is expected to be $197,600. What is the budgeted cost of goods manufactured? a). $649,450 b). $657,950 c). $197,600 d). $1,044,650
Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows: Quarter 1= 26,500 units Quarter 2 = 23,000 units Quarter 3 = 21,000 units Quarter 4 = 28,000 units Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 25% of that quarter's direct materials production requirements. Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1. What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?
White Corporation’s budget calls for the following sales for next year: Quarter 1 98,000 units Quarter 3 68,400 units Quarter 2 83,000 units Quarter 4 99,600 units Each unit of the product requires 2 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter.
Cameroon Corporation manufactures and sells electric staplers for $17 each. If 10,000 units were sold in December, and management forecasts 5% growth in sales each month, the number of units of electric stapler sales budgeted for February should be: Multiple Choice O 10,000 10,500 11,576 11,000
Cameroon Corp. manufactures and sells electric staplers for $15 each. If 15,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of units of electric stapler sales budgeted for February should be: Multiple Choice 15,000 16,873 15,600 16,224 16,500
Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.