Superior Industries sales budget shows quarterly sales for the next year as follows: Quarter 1-10,000; Quarter 2- 8,000; Quarter 3-12,000; Quarter 4-14,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of next year would be: O A. 8,800 units B. 10,400 units O C. 7,200 units O D. 12,000 units

Superior Industries sales budget shows quarterly sales for the next year as follows: Quarter 1-10,000; Quarter 2- 8,000; Quarter 3-12,000; Quarter 4-14,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of next year would be: O A. 8,800 units B. 10,400 units O C. 7,200 units O D. 12,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The marketing department of Teddy Bear Company has submitted the following sales forecast for the upcoming fiscal year. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 120,000 130,000 125,000 125,000 The company expected to start the first quarter with 20,000 units in finished goods in inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter s 25,000 units. Prepare the company’s production budget for the second quarter.
Frolic Corporation has budgeted sales and production over the next quarter as follows: September ? 61,150 Sales in units Production in units Multiple Choice 68,750 The company has 4,900 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 76,000 units. Budgeted sales for September would be (in units): 59,500 July 44,500 45,250 66,800 August 56,500 56,800
Reham Co is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units 1 20,000 2 25,000 3 35,000 4 30,000 Each unit requires 1.5 hours of direct labor. Wage rates are expected to be OMR16 for the first 2 quarters and OMR18for quarters 3 and 4. What is the Budgeted Total Direct Labor Cost for Quarter 4
Sales budget data for Paige Company are given in BE9.2. 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 2020.
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
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
HH Company is in the process of preparing the cash budget for the last four months of 2022 that is September to December. The following information has been made available. Sept Oct Nov Dec Projected sales quantity (units) 60,000 65,000 65,000 70,000 Additional information: Selling price is ksh 120 per unit but expected to drop by 5% from 1st Payment for goods sold is as follows; 20% in the month of sales, 70% the following month after sales and The balance in the second month after sales. Bad debt is estimated at 3% of sales value. Purchases of goods at ksh 65 per unit are as follows: September 88,000 units, October 84,000 units, November 95,000 units and December 80,000 units. Goods purchased are paid one month in arrears. Monthly expenses estimated at 15% on sales revenue are paid in the month of incurrence. The company plans to buy a delivery van at ksh 2,700,000, 40% of the cost to be paid in October and the…
GIVEN: Below is a Production Budget for the third quarter of a company's fiscal year that includes forecasted monthly unit sales. Additionally, management wishes to have 20% of the following month's unit sales as Desired Ending Inventory. July Aug Sep Q3 Oct Unit Sales: 30,000 32,000 34,000 38,000 Desired Ending Inventory: Total Required Units: Beginning Inventory: No. of Units to be Produced: 6,000 22) The Desired Beginning Inventory for August is: A) 6,000 B) 6,400 C) 6,800 D) 7,000 23) The number of units to be produced in September is: A) 34,800 B) 38,800 C) 41,600 D) 46,400
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
The marketing department of Kyle Corporation has submitted the following sales forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales (units) 8,800 10,800 12,800 11,800 The selling price of the company’s product is $28 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $88,500. The company expects to start the first quarter with 2,400 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,650 units. Required: 1-a. Prepare the company's sales budget. 1-b. Prepare the schedule of expected cash collections. 2.…
Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account April May June 95,000 69,000 120,000 435,000 484,000 470,000 530,000 553,000 590,000 Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?
The marketing department of IKEA Inc. has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 7,000 6,000 10,000 8,000 The company expects to start the first quarter with 1,500 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,100 units. Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per labor hour. The variable portion of its predetermined manufacturing overhead rate is $ 4 per direct labor-hour and its total fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $8,000 per quarter. The company’s variable selling and administrative expense per unit is $7.50. Fixed selling and administrative expenses include…