General Food Stuffs packages a variety of breakfast cereals and snack bars, which it aggregatestogether as simply 'units of sale’ when doing medium-term planning. General Food Stuffs has createdthe following aggregate plan for the next six months:MonthMonthMonthMonthMonthMonth16.Forecast (units of sale)30,00040,00050,00020,00010,0005,000Overall Production30,00040,00040,00030,0005,0005,000Ending InventoryRegular Time ProductionOvertime ProductionGeneral Food Stuffs can produce up to 30,000 units of sale a month in Regular Time, when productioncosts are only $1.50 per unit of sale. When General Foods Stuffs plans to exceed 30,000 units of saleproduced in a single month, all units of sale in excess of 30,000 must be produced in OvertimeProduction at a cost of $2.00 per unit of sale. General Food Stuffs actually has 10,000 units of saleavailable in inventory at the start of Month 1, and it will cost $0.50 to hold one unit of sale one month.What is the ending inventory for Month 3 in this plan?O A. 7500O B. 10000O C. 0O D. 15000O E. 50004-

Opening inventory, production, and ending inventory: The opening inventory for a period is the number of units that were produced in the previous period but were not sold during the period in which they were produced. The number of units manufactured in a given period refers to the production of that period. The ending inventory for a period represents the excess of the opening inventory and the goods produced over the number of units goods sold in that period. Determining the ending inventory: The opening inventory, sales, production, and closing inventory are tied together with the following formula: Ending Inventory = Opening Inventory + Production - Sales It is to be noted that the ending inventory for one period becomes the opening inventory for the next consecutive period. Assumption: It is assumed that General Food Stuffs sells as many units as has been forecasted each month.Computing the ending inventory for Month 3: It is observed that there is no ending inventory for Month 3. Hence the ending inventory for Month 3 is zero.Answer: The ending inventory for Month 3 is: C. 0

Answered: General Food Stuffs packages a variety…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square meters
You have been presented with the following information by the Budget Committee of the organization in which you work: Sales forecast January – April 2020 Details Study lamps Accent lights Expected selling price per unit $300 $500 Sales Volume forecast: January 2 000 units 1 000 units February 2 500 units 1 500units March 3 000 units 1 000 units April 2 000 units 1 200 units Additional information: (i) Beginning inventories: study lamps 300 units; accent lights 200 units. (ii) The ending inventory for each product at the end of each month is to be maintained at 20% of the budgeted sales for the next month. (iii) To make one study lamp, four (4) units of raw material lumber are used, while five (5) units of raw material aluminum are used to make one accent lights. Required: The Sales Budget for both products for January to March 2020. The Direct Material usage budget.
The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for $25. The company began the period with a beginning accounts receivable balance of $10,000. Choose the correct answer from the options provided. Budgeted unit sales Percentage of sales collected in the quarter of the sale Percentage of sales collected in the quarter after the sale. Quarter First Second Third Fourth 1,500 1,300 1,400 1,300 Knowledge Check 01 What is the amount of budgeted sales revenue for the fourth quarter? O $32,500 $33,750 O $35,000 $37,500 $8,125 O $8,750 O $9,375 O $28,125 Year 5,500 75% 25% Knowledge Check 02 What is the amount of cash that is expected to be collected during the second quarter as a result of sales made during the first quarter?
Beckett Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.10 per pound. Read the requirements. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500…
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Oak Industrial has estimated that production for the next five quarters will be:. Production Information 1st quarter, 2020 44,100 units 2nd quarter, 2020 40,000 units 3rd quarter, 2020 48,200 units 4th quarter, 2020 37,600 units 1st quarter, 2021 45,700 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $277,830 of raw material on hand at the beginning of the first quarter, 2020. Oak desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter.Prepare quarterly direct materials purchases budgets for Oak Industrial for 2020.
Vibrant Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 258 70 Desired inventory (units), June 30 296 61 Expected sales volume (units): North Region 3,250 3,650 South Region 5,200 4,500 Unit sales price $95 $185 a. Prepare a sales budget. Vibrant Inc. Sales Budget For the Month Ending June 30 Unit Unit Total Sales Selling Sales Volume Price Product and Area Model Rumble: North Region South Region Total Model Thunder: North Region South Region Total Total revenue from sales b. Prepare a production budget. Vibrant Inc. Production Budget For the Month Ending June 30 Units Units Model Model Rumble Thunder Expected units to be sold Total units required Total units to be produced
King purchases two components for its primary product. They need 3 of Component A and 2 of Component B for each unit of the primary product. Component A costs $3; Component B costs $5. Other facts: Forecasted Primary Product Production: January: 19,500 units February: 19,600 units March: 23,000 units April: 27,000 units Ending component inventory should equal 20% of next month’s production needs. Assume December’s ending inventory met this requirement. Calculate purchases for both Components in both units and dollars by month for Q1.

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