(Financial Account) Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt in units for the next three months are: October 30,000, November 36,000, December 34,000. Fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fiwrt plan on producing during the month of November?

(Financial Account) Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt in units for the next three months are: October 30,000, November 36,000, December 34,000. Fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fiwrt plan on producing during the month of November?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

See similar textbooks

Similar questions

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?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold for the last three months of 2022 is: Month Sales October 10,000 November 7,000 December 5,000 January 6,000 Finished goods inventory at the end of September is expected to be 3,000 units. Finished goods inventory is set at 30 percent of next month's sales. How many patio sets will need to be produced in October? Select one: a. 9,100 units b. 10,000 units c. 10,900 units d. 7,000 units e. none of these
Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold for the last three months of 2022 is: Month Sales October 10,000 November 7,000 December 5,000 January 6,000 Finished goods inventory at the end of September is expected to be 3,000 units. Finished goods inventory is set at 30 percent of next month's sales. How many tables will need to be produced in October?
How to solve the direct materials
Croy Incorporated has the following projected sales for the next five months: Sales in Month April Units 3,590 May 3,840 June 4,520 4,130 3,990 July August 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 $3.50 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 3,715 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $40,000, $60,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 40 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 2 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 45 percent of sales, one month prior to selling the finished products. Employees' wages represent 20 percent of sales and rent is $6,000 per month. At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
Need Help
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 240 280 300 240 Each month's ending Finished Goods Inventory in units 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 direct material B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted cost of direct material B during May should be:
Croy Incorporated has the following projected sales for the next five months: Month Sales in Units April 3, 580 May 3,810 June 4, 640 July 4, 125 August 3,960 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 $2.70 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 3,695 pounds. Required: Determine budgeted production for April, May, and June. Determine budgeted cost of direct materials purchased for April and May.
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,540 May 3,865 June 4,540 July 4,155 August 3,920 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.80 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,735 pounds. Required:1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.) 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.)
Croy Inc. has the following projected sales for the next 5 months: Month Sales in Units April 3,430 May 3,875 June 4,570 July 4,140 August 3,910 Croys finished goods inventory Policy is to have 50 percent of 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 3,653 pounds. 1. Determine Budgeted production for April, May, and June. April?Beginning inventory. May =4,222.5 June 4,355 2. Determine budgeted cost of materials purchsed for April and May.