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- Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?Furniture, Inc., estimates the following number of mattress sales for the first four months of 2024: Month Sales January 10,000 February 14,000 March 13,000 April 16,000 Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month's sales. How many mattresses need to be produced in January 2024? A) 8,800 mattresses B) 11,200 mattresses C) 13,000 mattresses D) 14,200 mattressesAll sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…
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- XYZ Company prices its products by adding 30% to its cost. XYZ anticipates sales of $715,000 in March, $728,000 in April, and $624,000 in May. XYZ’s policy is to have on hand enough inventories at the end of the month to cover 25% of the next month’s sales. What will be the cost of the inventory that ABC should budget for purchases in April? Solution: Cost of Inventory = Sales price/1.3 March cost of inventory $715,000/1.3 $550,000 April cost of inventory $728,000/1.3 $560,000 May cost of inventory $624,000/1.3 $480,000 Ending Inventory = Beginning inventory + purchases – cost of goods sold (cogs) April ending inventory $480,000 x 25% $120,000 Beginning inventory $560,000 x 25% $140,000 $120,000 = $140,000 + purchases – cost of goods sold (cogs)A buyer had an inventory of $93,000 on August 1 and a planned EOM stock of $120,000. Planned sales for the department were $65,000, and planned markdowns for the month were $5,690. As of August 1, the buyer had merchandise on order of $32,000 at retail to be delivered during the month. Planned initial markup was 48.5%. Calculate the buyer's OTB at cost as of August 1. а. $33,830.35 b. $65,690.00 c. $11,690.00 d. $19,925 e. $38,690.00Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units O 3,010 O 3,100 O 3,190 O 2,830 O 3,700 Jan. 2,500 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Question 8 Feb. 3,100 March. 3,700 April. 2,800 F6 F7 F8
- MAXI Co. has the following information: *Projected sales for four (4) months are as follows: July-20,000 units; August -35,000 units ; September-25,000; October-30,000. Sales price per unit is $180 *Plans are to have a finished goods inventory end equal to 20% of the unit sales for next month. There was 4,000 units in beginning inventory on July 1. *Three (3) kilos of materials are required per unit produced. Every kilo of material is $20. Raw material inventory must be equal to 30% of the next month's needs . Desired ending inventory for September is 25,200 kilos and beginning inventory was 20,700 kilos. *Each unit requires 0.60 hours of direct labor and the average wage rate is $16 per hour. *Variable overhead rate is $3.50 per direct labor hour. There is also a fixed overhead of $22,000 per month. *The company pays 3% commission on sales. *Company has a monthly fixed and selling expenses as follows: Rent-$6,000 ; Utilities-$1,200 ; Advertising-$400: Office Salaries-$35,000.…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…Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shades sells for $15. Shadee's beginning and ending finished goods inventories for May are 80 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. It expects the following unit sales for the third quarter. July August September 545 450 430 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale. 40 percent is collected during the following month, and 8 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
