The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after: Sales Ending Inventory September 30,000 units 8,000 units October40,000 units 20% of next month's sales November50,000 units 20% of next month's sales December60,000 units 20% of next month's sales January 20,000 units 10% of next month's sales The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20. The multiperiod direct labor cost budget for the fourth quarter should show the total direct labor cost for the quarter to be a.$355,000 b.$365,000 c.$3,650,000 d.$375,000

The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after: Sales Ending Inventory September 30,000 units 8,000 units October40,000 units 20% of next month's sales November50,000 units 20% of next month's sales December60,000 units 20% of next month's sales January 20,000 units 10% of next month's sales The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20. The multiperiod direct labor cost budget for the fourth quarter should show the total direct labor cost for the quarter to be a.$355,000 b.$365,000 c.$3,650,000 d.$375,000

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

All 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…
The trailer company exspects to sell 9000 for $155 each for a total of $1,395,000 in January and 4500 units for $225 each for a total of $1,012,500 in February. The company exspects the cost of goods sold to average 70% of sales revenue, and the company exspects to sell 4700 units in march for $290 each. Trailer's target ending inventory is $9000 plus 50% of next months cost of goods sold. Prepare Trailer's inventory, purchases, and cost of goods sold budget for January and February. Trailer Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January february cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases
Manji
MNO Company forecast sales in units for July to November as follows: Units JULY - 4000 aUGUST - 4300 SEPTEMBER - 4500 OCTOBER - 4700 NOVEMBER - 5000 MNO Company would like to maintain 200 units in its ending inventory at the end of each month starting July. Ending inventory for the month of June is 150 units. Beginning inventory at the start of January amounts to 100 units. 1. How many units should MNO Company produce for the month of July to fulfill the expected sales of the company?
The beginning inventory is expected to be 3,100 cases. Expected sales are 13,300 cases, and the company wishes to begin the next period with an inventory of 2,100 cases. The number of cases the company must purchase during the month is
Sales for February of this year totaled $192,096. If the planned seasonal sales distribution is as follows, figure the dollar sales for the remaining months of the period. Round to the nearest dollar. February 10% March 14% April 16% May 18% June 14% July 12%
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. $38,690.00
The production planner of a company forecasts the sales over the next six months as 180, 220 , 210, 190, 170, and 210 units, respectively. The beginning inventory is 100 units and the last monthly production level was 130 units. The unit costs are given as follows: Inventory holding cost is 90 TL per unit per month; production cost is 1150 TL per unit; production level increasing cost is 300 TL per unit; and production level decreasing cost is 400 TL per unit. The planner decides to use level strategy, where the monthly production level is determined equal to the average of net demand. What is the total cost (in TL) of the resulting plan? O a 1,246,350 O b. 1,347,450 O c. 1,412,850 O d. 1,391,100 O e. 1,278,600
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.…
Narai Co. has a desired ending inventory of 30% of the next months forecasted sales. In turn, their cost of goods sold is 60%, and their forecasted sales for the months of March, April, May, June, and July are as follows: $750,000, $880,000, $700,000, $800,000, and $900,000 respectively. Purchases for the months of February and March were $500,000 and $360,000 and their purchases are paid as follows: 10% during the month of the purchase 80% in the next month and the final 10% in the next month. Required: Prepare budget schedules for the months of April, May, and June for required purchases and also for disbursements for purchases.
Trailers Company expects to sell 6,500 units for $155 each for a total of $1,007,500 in January and 2,300 units for $200 each for a total of $460,000 in February. The company expécts cost of goods sold to average 50% of sales revenue, and the company expects to sell 5,000 units in March for $200 each. Trailers' target ending inventory is $20,000 plus 50% of the next month's cost of goods sold. Prepare Trailers' inventory, purchases, and cost of goods sold budget for January and February. Trailers Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases 503750 135000 638750 February 230000 520000 750000
Jarash, Inc. anticipates sales of 121758 units, 150 000 units, and 160.000 units in July. August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in July? 181758 units