Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes:Daytripper: 4,000 backpacks in July, 4,400 backpacks in AugustExcursion: 2,400 backpacks in July, 1,800 backpacks in AugustTeton's policy is to maintain ending inventories at 5% of what is expected for the next month.What is the budgeted level of production in July for both styles?Select one:a. 4,420 Daytripper backpacks and 1,770 Excursion backpacksb. 3,980 Daytripper backpacks and 2,430 Excursion backpacksc. 4,000 Daytripper backpacks and 2,400 Excursion backpacks○ d. None of these options are correct.e. 4,020 Daytripper backpacks and 2,370 Excursion backpacks

Daytripper Backpacks:Anticipated Sales in July: 4,000 backpacksAnticipated Sales in August: 4,400…

Answered: Teton Trails manufactures backpacks for…

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 Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? OA. 20,800 OB. 15,400 13,000 11,000 9,000 OC. 27,400 OD. 28,600
Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases. BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Budgeted production Materials needed for production (lbs.) Total materials requirements (lbs.)…
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,200 backpacks in July, 2,420 backpacks in August Excursion: 1,320 backpacks in July, 990 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 5,500 hours, how much indirect labor did Teton budget? Select one: O a. None of these options are correct. O b. 1,705 hours 0 c. 0 hours 0 d. 2,090 hours O e. 605 hours
Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter. Prepare the third-quarter production budget for skis. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Required units of available production Units to be manufactured
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square meters
Shamrock Shades purchases sunglasses from bulk discounters and sells the sunglasses in mall kiosks throughout the Pacific Northwest. Shamrock is in the process of budgeting for the coming year and has projected sales of $360,000 for January, $440,000 for February, $600,000 for March, and $640,000 for April. Shamrock's desired ending inventory is 55 percent of the following month's cost of goods sold. Cost of goods sold is expected to be 45 percent of sales. Required: Compute the required purchases for each month of the first quarter (January through March). January Required Purchases February March
Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $298,000 in December, $236,000 in January, and $232,000 in February. What is the balance in accounts payable for January 31, and February 28? Ending Balance January $fill in the blank 1 February fill in the blank 2
Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter. Prepare the direct labor budget for the third quarter. BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to be produced Total labor hours needed Budgeted direct labor cost
Abrams Bottling Company sells fruit-flavored colas. Estimated sales in cartons for May, June, and July are 1,000, 3,000, and 5,000, respectively. The price is forecast at $5 per carton. Abrams requires that finished goods ending inventory be 20 percent of the next month's sales. Inventory was 500 units on May 1. Each carton requires 12 oz. of fruit syrup and 130 oz. of carbonated water. Materials ending inventory is 10 percent of the next month's production needs. May 1 inventory met that requirement. A. The budgeted revenue for May is B. The budgeted revenue for July is C. Production in May is D. Production in June is E. Purchases of syrup in May is F. Purchases of carbonated water in May is $ cartons cartons ounces ounces
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,400 backpacks in July, 2,640 backpacks in August Excursion: 1,440 backpacks in July, 1,080 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 6,000 hours, how much indirect labor did Teton budget? Select one: 00 a. 0 hours b. 660 hours c. 1,860 hours d. None of these options are correct. e. 2,280 hours
Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $133,000 in November, $298,000 in December, $240,000 in January, and $225,000 in February. What is the balance in accounts payable for January 31, and February 28? Ending Balance January $fill in the blank 1 February fill in the blank 2
Ecology 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

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS