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 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

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 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

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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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
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 696,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.71 per poundMaterial B: 1.00 lb. per unit @ $1.89 per poundMaterial C: 1.20 lb. per unit @ $0.84 per poundThe dollar amount of Material B used in production during the year is
Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. 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 2022. Expected Unit Sales Add V: Desired Ending Finished Goods Inventory Total Required Units Less V: Beginning Finished Goods Inventory Required Production Units BLOSSOM COMPANY Production Budget For the Six Months Ending June 30, 2022 V 1 8000 2800 10800 Quarter D 11200 3000 14200 Six Months
At January 1, 2022, Oriole Company has beginning inventory of 3000 surfboards. Oriole estimates it will sell 11000 units during the first quarter of 2022 with a 10% increase in sales each for the following quarters. Oriole's policy is to maintain an ending finished goods inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $155. What is the budgeted sales revenue for the third quarter of 2022 $2247500 $2063050 $13310 5542500
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
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box Direct material required per 100 boxes: Paperboard ($0.30 per pound) Corrugating medium ($0.15 per pound). Direct labor required per 100 boxes ($18.00 per hour). Indirect material Indirect labor Utilities Property taxes Insurance Depreciation. Total C $12,150 95,850 31,500 21,000 16,000. 33,500 $210,000 Total 40 pounds 30 pounds 0.25 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel. Advertising $115,500 23,500…
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Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units First month Second month Third month Projected sales units 10,000 12,000 15,000 Desired ending inventory is determined to be 10% of the next month’s projected sales. The expected purchase cost per unit is $50. Compute the budgeted Costs of goods sold for the next quarter. Group of answer choices $1,850,000 $600,000 $500,000 $750,000
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
Swifty Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017: June 30, 2017 June 30, 2016 Raw 3000 kilos 1000 kilos Materials Three kilos of raw materials are needed to produce each unit of finished product. If Swifty Corporation plans to produce 480000 units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year? O 1442000 O 1446000 O 1439000 O 1440000
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 643,000 units, estimated beginning inventory is 105,000 units, and desired ending inventory is 84,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.61 per poundMaterial B: 1.00 lb. per unit @ $2.37 per poundMaterial C: 1.20 lb. per unit @ $0.86 per poundThe dollar amount of Material C used in production during the year is a.$577,714 b.$770,285 c.$706,094 d.$641,904
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…