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 nextquarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projectedsales were used to determine last quarter's required ending inventory.Mallory CompanyProduction BudgetFirst QuarterBudgeted Sales in unitsAdd: desired ending finished goods inventoryTotal finished goods inventory neededDeduct: beginning finished goods inventoryUnits to be produced1st Qtr.

Production budget is that which shows the forecast of production units on the basis of past…

Answered: Mallory Company expects to sell 130…

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

See similar textbooks

Similar questions

The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,800 12,800 14,800 13,800 Budgeted unit sales The selling price of the company's product is $17 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $71,800. The company expects to start the first quarter with 1,770 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,970 units. Required: 1. Calculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections…
The marketing department of Teddy Bear Company has submitted the following sales forecast for the upcoming fiscal year. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 120,000 130,000 125,000 125,000 The company expected to start the first quarter with 20,000 units in finished goods in inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter s 25,000 units. Prepare the company’s production budget for the second quarter.
Sales budget data for Paige Company are given in BE9.2. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020.
Please dont give solutions image based thanku
Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales First month Second month Third month Projected sales units 20,000 25,000 30,000 Desired ending inventory is determined to be 12% 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 25,600 units 28,600 units 31,600 units 26,400 units
Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 30,000 31,000 23,000 28,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $29,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $9,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal pla Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company Selling…
5. Archer's cost accountant prepared the following static budget based on expected activity of 4,000 units for the May 2022 accounting period: Sales Revenue $64,000 Variable Costs (34.000) Contribution Margin $30,000 (20.000) $10,000 Fixed Costs Net Income a. If Archer's sales manager were to prepare a flexible budget for expected activity of 4,300 units, budgeted net income on this flexible budget would be? b. If Archer actually produced and sold 4,300 units at $20 each, what is the sales revenue activity/volume variance? Indicate favorable / unfavorable variances c. If Archer actually incurred the following costs during May 2022: Sales Revenue Variable Costs Contribution Margin $49,000 Fixed Costs $86,000 (37.000) (22.000) $27,000 Net Income The flexible budget variance for: Indicate favorable / unfavorable variances i. Fixed costs: ii. Variable costs:
The marketing department of IKEA Inc. has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 7,000 6,000 10,000 8,000 The company expects to start the first quarter with 1,500 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,100 units. Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per labor hour. The variable portion of its predetermined manufacturing overhead rate is $ 4 per direct labor-hour and its total fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $8,000 per quarter. The company’s variable selling and administrative expense per unit is $7.50. Fixed selling and administrative expenses include…
Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400 in quarter 3; and 18600 in quarter 4. management wnta to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS