Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Raw material Beginning Inventory Ending Inventory 110,000 Finished goods 190,000 130,000 130,000 Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 945,000 units during next year, the number of units it would have to manufacture during the year would be: a. 525,000 units b. 885,000 units c. 555,000 units d. 585,000 units

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Raw material Beginning Inventory Ending Inventory 110,000 Finished goods 190,000 130,000 130,000 Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 945,000 units during next year, the number of units it would have to manufacture during the year would be: a. 525,000 units b. 885,000 units c. 555,000 units d. 585,000 units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

See similar textbooks

Similar questions

Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
Gardner Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 48,000 58,000 Finished goods 88,000 58,000 * Three pounds of raw material are needed to produce each unit of finished product. If Gardner Corporation plans to sell 520,000 units during next year, the number of units it would have to manufacture during the year would be:
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Ending Inventory Inventory Raw material* 58,000 68,000 Finished goods 98,000 68,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 570,000 units during next year, the number of units it would have to manufacture during the year would be: Multiple Choice O 600,000 units 540,000 units 512,000 units 570,000 units
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Inventory Ending Raw material* 53,000 63,000 63,000 Finished goods 93,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be: Multiple Choice 545,000 units 492,000 units 575,000 units 515,000 units
Need answer the questions
Please give correct answer of this question
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. a. b. Raw material* Finished goods C. d. Beginning Inventory 500,000 units 520,000 units 510,000 units 570,000 units 30,000 70,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be: Ending Inventory 40,000 60,000
How much purchase?
Answer Steps should be correctly
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Raw material (grams) Beginning Inventory Ending Inventory 20,000 70,000 50,000 40,000 Each unit of finished goods requires 2 grams of raw material. The company plans to sell 550,000 units during the year. How much of the raw material should the company purchase during the year?
Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning inventory Ending inventory Finished goods (units) 70,000 20,000 Raw material (grams) 50,000 60,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 880,000 units during the year. How much of the raw material should the company purchase during the year? a. 2,550,000 grams b. 2,490,000 grams c. 2,480,000 grams d. 2,500,000 grams
Oriental Lamp Co. manufactures lamps. The estimated number of lamp sales for the last three months of 2020 are as follows: Units October 10,000 November 14,000 December 13,000 Finished Goods Inventory at the end of September was 3,000 units. Ending Finished Goods Inventory is budgeted to equal 25% of the next month’s sales. REQUIRED: How many lamps should be produced in November?