The TESS Company has budgeted sales for the year as follows: Quarter 1 10,000 Quarter 2 12,000 Quarter 3 14,000 Quarter 4 16,000 Sales in units The ending inventory of finished goóds for each quarter should equal 25% of the next quarter's budgeted sales In units. The nished goods inventory at the start of the year is 2,500 unlts. Four pounds of raw materials arerequired for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory et the end of each quarter should equal 10% of the next quarter's production needs In matenal. Required: 1. How many unts should be produced in the third quarter? 2. How many pounds of materials should be purchased for the second quartee? WERSI

The TESS Company has budgeted sales for the year as follows: Quarter 1 10,000 Quarter 2 12,000 Quarter 3 14,000 Quarter 4 16,000 Sales in units The ending inventory of finished goóds for each quarter should equal 25% of the next quarter's budgeted sales In units. The nished goods inventory at the start of the year is 2,500 unlts. Four pounds of raw materials arerequired for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory et the end of each quarter should equal 10% of the next quarter's production needs In matenal. Required: 1. How many unts should be produced in the third quarter? 2. How many pounds of materials should be purchased for the second quartee? WERSI

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are budgeted data: Sales (units) Production (units) July 5,000 18,000 August 20,000 19,000 September 18,000 16,000 Two pound of material are required for each finished uit. the inventory of materials at the end of each month should equal 35% of the following month's producion needs. puchases of raw materials for august should be:
2. Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,780,000 Quarter 2 5,690,000 Quarter 3 630,000 Quarter 4 8,200,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,080,000 and for the fourth quarter of the current year are $7,220,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank b0590a054f99004_1 $fill in the blank b0590a054f99004_2 4, current year fill in the blank…
Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
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