Marvel Woodcraft makes furniture. Marvel's expected sales are 23,000 bookcases for the quarter. The company begins the quarter with inventory of 3.000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter's expected sales of 27.000 bookcases. Ignoring any beginning inventory, if 50 board feet are required for each bookcase and the wood costs $2 per board foot, how much will Marvel pay for the bookcases it needs produce during the quarter? Mutiple Cholce s2J0s.000 $2.A05.000 $2.900.000 $405.000 S600.000

Marvel Woodcraft makes furniture. Marvel's expected sales are 23,000 bookcases for the quarter. The company begins the quarter with inventory of 3.000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter's expected sales of 27.000 bookcases. Ignoring any beginning inventory, if 50 board feet are required for each bookcase and the wood costs $2 per board foot, how much will Marvel pay for the bookcases it needs produce during the quarter? Mutiple Cholce s2J0s.000 $2.A05.000 $2.900.000 $405.000 S600.000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Marvel Woodcraft makes furniture. Marvel's expected sales are 23,000 bookcases for the quarter. The company begins the quarter with inventory of 3,000 bookcases and
wants to have encugh finished beokcases on hand at the end of the quarter to provide for 15% of the next quarter's expected sales of 27000 bookcases. Ignoring any
beginning inventory, If 50 board feet are required for each bookcase and the wood costs $2 per board foot, how much will Marvel pay for the bookcases it needs produce
during the quarter?
Mutiple Choice
$2J05.000
$2.405,000
$2,900.000
$405,000
S600.000

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