Question:56 Sapco (a retailer) has the following sales forecast: January: $500,000 February: $600,000 March: $450,000 April: $620,000 Sapco has a 30% gross margin percentage. Inventory at January 1 is $60,000. Sapco intends to keep enough inventory on hand at the end of the month to cover 20% of next month's cost of goods sold. How much inventory (in cost, not units) should Sapco purchase in January?Hint: the COGS % is 70%. A. $560,000B. $434,000C. $350,000D. $374,000E. none of the above Mark Company builds swimming pools. Mark budgets that they will build 14 pools during the month of April at a price of $20,905 per pool. Actual pools built by Mark during April were 12 pools at a price of $21,570 per pool. What is the Flexible Budget Variance for April? Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A. $579,600 B. $590,400 C. $601,200 D. $648,000 Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (El) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A. $79,200 B. $80,400 C. $81,600 D. $82,800
Question:56 Sapco (a retailer) has the following sales forecast: January: $500,000 February: $600,000 March: $450,000 April: $620,000 Sapco has a 30% gross margin percentage. Inventory at January 1 is $60,000. Sapco intends to keep enough inventory on hand at the end of the month to cover 20% of next month's cost of goods sold. How much inventory (in cost, not units) should Sapco purchase in January?Hint: the COGS % is 70%. A. $560,000B. $434,000C. $350,000D. $374,000E. none of the above Mark Company builds swimming pools. Mark budgets that they will build 14 pools during the month of April at a price of $20,905 per pool. Actual pools built by Mark during April were 12 pools at a price of $21,570 per pool. What is the Flexible Budget Variance for April? Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A. $579,600 B. $590,400 C. $601,200 D. $648,000 Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (El) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A. $79,200 B. $80,400 C. $81,600 D. $82,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:56
Sapco (a retailer) has the following sales forecast:
January: $500,000
February: $600,000
March: $450,000
April: $620,000
Sapco has a 30% gross margin percentage. Inventory at January 1 is
$60,000. Sapco intends to keep enough inventory on hand at the end of
the month to cover 20% of next month's cost of goods sold. How much
inventory (in cost, not units) should Sapco purchase in January?Hint:
the COGS % is 70%.
A. $560,000B. $434,000C. $350,000D. $374,000E. none of the above
Mark Company builds swimming pools. Mark budgets that they will
build 14 pools during the month of April at a price of $20,905 per pool.
Actual pools built by Mark during April were 12 pools at a price of
$21,570 per pool. What is the Flexible Budget Variance for April?
Lao Shu Company is preparing its direct labor budget for May.
Projections for the month are that 16,700 units (RP) are to be produced
and that direct labor time is three hours per unit. If the labor cost per
hour is $12, what is the total budgeted direct labor cost for May?
A. $579,600 B. $590,400 C. $601,200 D. $648,000
Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of
direct materials are needed for production in July. There are 1,600
pounds of direct materials (BI) on hand at July 1 and the desired Ending
Inventory (El) is 1,400 pounds. If the cost per pound (lb) of direct
materials is $3, what is the budgeted total cost of direct materials
purchases (DM-Purchases SS)?
A. $79,200
B. $80,400
C. $81,600
D. $82,800
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