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 Ob. 1,347,450 Oc. 1,412,850 O d. 1,391,100 O e. 1,278,600

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 Ob. 1,347,450 Oc. 1,412,850 O d. 1,391,100 O e. 1,278,600

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

Bexon company sells a product for RM730. Unit sales for May were 700 and each month's sales are expected to exceed the prior month's results by 3%. Compute the total sales amount to be reported on the sales budget for month ended June 30. 1.511,000 2.495,670 3.664,300 4.517,730 5.526,330
hollow company manufactures and sells one product only. following financial information have been obtained for next four quarters of the year 2016: quarter-1 quarter-2 quarter-3 quarter-4 sales in units 300 400 400 600 further information price will remain for the first and second quarter rs. 200 and third and fourth quarter rs. 190 for each product respectively. sales at 70% realized in the quarter of sales. balance 30% realized in the next quarter. required: a sales budget, including a schedule of expected cash receipts for the year 2016
If the expected sales volume for the current period is 6,000 units, the desired ending inventory is 264 units, and the beginning inventory is 309 units, the number of units set forth in the production budget, representing total production for the current period, is a.6,264 b.6,000 c.5,691 d.5,955
Oriental Lamp Co. manufactures lamps. The estimated number of lamp sales for the last three months of 2020 are as follows: Units October 10,000 November 14,000 December 13,000 Finished Goods Inventory at the end of September was 3,000 units. Ending Finished Goods Inventory is budgeted to equal 25% of the next month’s sales. REQUIRED: How many lamps should be produced in November?
Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost Miscellaneous expenses Fixed Expenses: Salaries expense Rent expense Depreciation expense Power cost/fixed portion Miscellaneous expense/fixed portion OA. $35,300 OB. $40,300 OC. $22,500 OD. $45,300 (40% of sales) (10% sales) $6,000 per month $4,000 per month $1,000 per month $800 per month $1,000 per month
Kent Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000. For Kent Company, the ending accounts payable should be: Select one: O A. $341,000 B. $414,000 C. $264,000 D. $356,000
Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in March? O a. 27,500 O b. 30,000 Oc. 24,700 O d. None of the given answers. O e. 40,500 O f. 34,000 Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 70%, what is the breakeven point in ($) value? (round figures to the nearest number) on Finis
The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for $25. The company began the period with a beginning accounts receivable balance of $10,000. Choose the correct answer from the options provided. Budgeted unit sales Percentage of sales collected in the quarter of the sale Percentage of sales collected in the quarter after the sale. Quarter First Second Third Fourth 1,500 1,300 1,400 1,300 Knowledge Check 01 What is the amount of budgeted sales revenue for the fourth quarter? O $32,500 $33,750 O $35,000 $37,500 $8,125 O $8,750 O $9,375 O $28,125 Year 5,500 75% 25% Knowledge Check 02 What is the amount of cash that is expected to be collected during the second quarter as a result of sales made during the first quarter?
ARE YOU READY TO PRACTICE: Complete the table below. A Company has the following sales 2,000 in January, 2,200 in February, 2,800 in Apr and 3,000 in May. Assuming the selling prices is P100/unit. Sales for each month ar expected to be collected as follows: • Month of sales: 20% ► A month after sales: 50% ► 2 months after sales: 30% - How much is total receipts from sales? Apr Jan Feb Mar May Total Units Sold 12, 500 P1,250,000 P250,000 Sales in Pesos Collection from current months sales Collection from previous P150,000 months sales Collection from two months P84,000 sales Total Collections from Sales 40,000 P926,000 PRACTICE EXERCISE 1: Fill the table below. A Company has the following sales 2,000 in January, 2,200 in February, 2,800 in April and 3,00 in May. Assume that cost per unit is PHP50. All purchases this month are paid the following month. How much is total cash disbursements for purchases? Jan Feb Mar Apr May Total Required production Cost in Pesos Payment from current…
answer?
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Following Year Quarter in Coming Year Second $362 Third $338 Fourth $386 First First Quarter Sales forecast $374 $386 Paymore's labor and administrative expenses are $67 per quarter and interest on long-term debt is $42 per quarter. Paymore's cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. Assume that Paymore can borrow up to $338 from a line of credit at an interest rate of 2% per quarter. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $338. On average, two-thirds of purchases are paid for in the quarter that they are purchased, and one-third are paid in the following quarter. Prepare a short-term financing plan using the above table. (Leave no…
Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in March? O a. 34,000 O b. 24,700 O c. 40,500 O d. 30,000 O e. None of the given answers. O f. 27,500