please answer with complete and correct working thanks ending inventory should be34,0O0 Sheridan Industries had sales in 2021 of $6,256,000 and gross profit of $1,012,000. Management is considering two alternativebudget plans to increase its gross profit in 2022.Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 115,000 units from its 2021level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume wouldincrease by 119,600 units.At the end of 2021, Sheridan has 38,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 34,00units. If Plan B is accepted, the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.50 in direct labor,$1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,744,000.(a)Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.)SHERIDAN INDUSTRIESSales BudgetPlan ASPlan B

A sales budget is a financial plan that outlines the expected sales revenue for a specific period,…

Answered: heridan Industries had sales in 2021 of…

heridan Industries had sales in 2021 of $6,256,000 and gross pr udget plans to increase its gross profit in 2022. lan A would increase the selling price per unit from $8.00 to $8.

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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