Vignette #1 The Deluxe Motorcar in northern California manufactures motor cars of all categories. Its budgeted sales for the most popular sedan model XE8 in 2018 is 4,000 units. Deluxe Motorcar has a beginning finished inventory of 600 units. Its ending inventory is 450 units. The present selling price of model XE8 to the distributors and dealers is $35,200. The company does not want to increase its selling price in 2018. Deluxe Motorcar does not produce tires. It buys the tires from an outside supplier. One complete car requires five tires including the tire for the extra wheel. The company's target ending inventory is 400 tires, and its beginning inventory is 350 tires. The budgeted purchase price is $45 per tire. 1. The budgeted revenues (in USD million dollars) is closest to

Vignette #1 The Deluxe Motorcar in northern California manufactures motor cars of all categories. Its budgeted sales for the most popular sedan model XE8 in 2018 is 4,000 units. Deluxe Motorcar has a beginning finished inventory of 600 units. Its ending inventory is 450 units. The present selling price of model XE8 to the distributors and dealers is $35,200. The company does not want to increase its selling price in 2018. Deluxe Motorcar does not produce tires. It buys the tires from an outside supplier. One complete car requires five tires including the tire for the extra wheel. The company's target ending inventory is 400 tires, and its beginning inventory is 350 tires. The budgeted purchase price is $45 per tire. 1. The budgeted revenues (in USD million dollars) is closest to

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

K [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 540 sun shades in May and 360 in June. Each shade sells for $155. Shadee's beginning and ending finished goods inventories for May are 70 and 50 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-8 (Algo) Preparing Cost of Goods Sold Budget [LO 8-3f] Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $13 per unit produced. Use the information and solutions presented to complete the requirements. Required: 1. Determine Shadee's…
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit $ 27 Variable expense per unit $ 18 Fixed expense per month $ 7,650 Unit sales per month 1,000 Required: What is the company's margin of safety in dollars? Note: Do not round intermediate calculations. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows: Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units Opening inventory 1,000 units Opening inventory 2,000 units Closing inventory 600 units Closing inventory 800 units Selling price $400 Selling price $300 Raw material inventory budget for the year 2020 are as follows: Pins Clips Opening inventory 2,400 units Opening inventory 3,300 units Closing inventory 500 units Closing inventory 600 units The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as…
Chapman Inc. sells a single product, Zud, which has a budgeted selling price of $39 per unit and a budgeted variable cost of $27 per unit. Budgeted fixed costs for the year amount to $52,500. Actual sales volume for the year (62,000 units) fell 10,500 units short of budgeted sales volume. Actual fixed costs were $53,500. With everything else held constant, what impact did the shortfall in volume have on profitability for the year? (Indicate whether the effect was favorable or unfavorable in terms of its effect on operating income.)
nprogress=false Print Item Sunrise Poles manufactures hiking poles and is planning on producing 3,800 units in March and 3,700 units in April. Each pole requires a half pound of material, which costs $1.00 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. What is the budgeted cost of purchases for March? Budgeted cost of purchases $ Previous Nex
EB5. LO 7.2 Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards of material, which costs $3.00 per yard. The company's policy is to have enough material on hand to equal 15% of next month's production needs and to maintain a finished goods inventory equal to 20% of the next month's production needs. What is the budgeted cost of purchases for March?
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ● Quarter 1 Quarter 2 Quarter 3 Quarter 4 38,000 58,000 29,000 58,000 Budgeted unit sales Each T-shirt is expected to sell for $13. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 23 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $76,000 per quarter plus 18 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter.
Smooth Incorporated manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2021 and 2022 was 4,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: 2021 2022 Units sold 3,000 4,200 Units produced 4,000 4,000 Costs: Variable factory overhead per unit $ 0.55 $ 0.65 Fixed factory overhead $ 1,800 $ 1,800 Variable marketing per unit $ 0.75 $ 1.00 Fixed Selling and Administrative $ 650 $ 650 Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) Multiple Choice $1,450. $1,900. $1,950. $1,521. $1,569.
8-41 Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 86,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Direct materials $3.10 Direct labor 2.50 Variable overhead 1.15 Fixed overhead 1.80 Total $8.55 Suppose a customer wants to have its company logo affixed to each paperweight using a label. Smooth Move would have to purchase a special logo labeling machine that will cost $12,000. The machine will be able to label the 15,000 units and then it will be scrapped (with no further value). No other fixed overhead activities will be incurred. In addition, each special logo requires additional direct materials…
1) Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 19_9 is 800,000 units. Suzuki's target ending inventory is 100,000 units, and its beginning inventory is 120,000 units. The com- pany's budgeted selling price to its distributors and dealers is 400,000 yen (¥) per motorcycle. Suzuki buys all its wheels from an outside supplier. No defective wheels are accepted. (Suzuki's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 30,000 wheels, and its beginning inventory is 20,000 wheels. The budgeted purchase price is ¥16,000 per wheel. REQUIRED 1. Compute the budgeted revenue in yen. 2. Compute the number of motorcycles to be produced. 3. Compute the budgeted purchases of wheels in units and in yen.
The Yucatan Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2018 are 95,000 units. Yucatan’s target ending inventory is 7,000 units, and its beginning inventory is 11,000 units. The company’s budgeted selling price to its distributors and dealers is 3,500 pesos per bicycle. Yucatan buys all its wheels from an outside supplier. No defective wheels are accepted. Yucatan’s needs for extra wheels for replacement parts are ordered by a separate division of the company. The company’s target ending inventory is 14,000 wheels, and its beginning inventory is 16,000 wheels. The budgeted purchase price is 400 pesos per wheel. Q.Compute the number of bicycles that Yucatan should produce
Chapman Incorporated sells a single product, Zud, which has a budgeted selling price of $41 per unit and a budgeted variable cost of $29 per unit. Budgeted fixed costs for the year amount to $53,500. Actual sales volume for the year (64,000 units) fell 11,500 units short of budgeted sales volume. Actual fixed costs were $54,500. With everything else held constant, what impact did the shortfall in volume have on profitability for the year?