On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.Sales units:Ending raw materials inventory:Ending finished goods inventory:Third-quarter production:40% of the next quarter's production requirements.First quarter 5,400; second quarter 6,100; third quarter 7,900.25% of the next quarter's expected sales units.7,430 units.The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds ofraw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound.Prepare a production budget by quarters for the 6-month period ended June 30, 2020.CARLA VISTA COMPANYProduction Budget1QuarterSix2Months

Production Budget For the Six Months Ending June 30, 2020 12Six monthsExpected Unit Sales54006100…

Answered: On January 1, 2020, the Carla Vista…

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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Mary's Baskets Company expects to manufacture and sell 23,000 baskets in 2019 for $6 each. There are 3,000 baskets in beginning finished goods inventory with target ending inventory of 3,000 baskets. The company keeps no work- in-process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? O A. $120,000 B. $156,000 OC. $102,000 OD. $138,000 Calculator Next
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A company is preparing budgets for the quarter ending Mar 31, 2020.Jan 10,000 unitsFeb 50,000 unitsMar 30,000 unitsApr 60,000 unitsMay 40,000 unitsThe management of this company assumes the following:1) Selling price is $5.2) On Dec 31, 2019, the finished goods totaled 3,000 units. Finished goods at the end of each month must be 20% of the following month’s budgeted sales.3) All sales are on account. 70% of the credit sales are collected in the month of sale, 25% in the month following sale, and the remainders are uncollectible.4) On Dec 31, 2019, the cash balance is $10,000. Q: The company predicts only 50% of the budgeted sales in units can be achieved. Moreover, the company decides to cut the selling price to $3, and the company expects 50% of credit sales can be collected in the month of sale, 20% in the month following sale, the reminders are not collectible. The other things being the same. Please prepare the cash collection and required production (in units) for January,…
Howard Temple, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct man $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2020: Beginning Inventory Ending Inventory Direct materials 24,000 units 24,000 units Work-in-Process Inventory 0 units O units Finished Goods Inventory 2,000 units 2,500 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead. O $48,000; S96,000; $19.200 O $44,000; $88,000, $17.600 O $41.000, $82.000; $16,400 O $40,000, S80,000: $16,000 - Previous
GIVEN: Below is a Production Budget for the third quarter of a company's fiscal year that includes forecasted monthly unit sales. Additionally, management wishes to have 20% of the following month's unit sales as Desired Ending Inventory. July Aug Sep Q3 Oct Unit Sales: 30,000 32,000 34,000 38,000 Desired Ending Inventory: Total Required Units: Beginning Inventory: No. of Units to be Produced: 6,000 22) The Desired Beginning Inventory for August is: A) 6,000 B) 6,400 C) 6,800 D) 7,000 23) The number of units to be produced in September is: A) 34,800 B) 38,800 C) 41,600 D) 46,400
Crane Company has 2,120 pounds of raw materials in its December 31, 2026, ending inventory. Required production for January and February of 2027 are 4,240 and 5,300 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equal to 25% of next month's materials requirements. Prepare the direct materials budget for January. CRANE COMPANY Direct Materials Budget SA $

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