Revenues and production budget. Saphire, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1 - gallon reusable plastic containers. Required: 1. For 2018, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1 - gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and $1.60 per 1 - gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2018. 2. Saphire begins 2018 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Saphire to produce 1,200,000 1-gallon containers during 2018, what is the beginning inventory of 1- gallon containers on January 1, 2018?

Revenues and production budget. Saphire, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1 - gallon reusable plastic containers. Required: 1. For 2018, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1 - gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and $1.60 per 1 - gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2018. 2. Saphire begins 2018 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Saphire to produce 1,200,000 1-gallon containers during 2018, what is the beginning inventory of 1- gallon containers on January 1, 2018?

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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