Wildhorse Ltd. estimates sales for the second quarter of 2022 will be as follows. Month April May June Units March 31 April 30 May 31 June 30 3,090 3,190 2,960 The target ending inventory of finished products is as follows. 2,440 2,620 2,600 2,900 Two units of materials are required for each unit of finished product. Production for July is estimated at 3,210 units to start building inventory for the fall sales period. Wildhorse's policy i to have an inventory of raw materials at the end of each month equal to 50% of the following month's production requirements. Raw materials are expected to cost $4 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost $

Wildhorse Ltd. estimates sales for the second quarter of 2022 will be as follows. Month April May June Units March 31 April 30 May 31 June 30 3,090 3,190 2,960 The target ending inventory of finished products is as follows. 2,440 2,620 2,600 2,900 Two units of materials are required for each unit of finished product. Production for July is estimated at 3,210 units to start building inventory for the fall sales period. Wildhorse's policy i to have an inventory of raw materials at the end of each month equal to 50% of the following month's production requirements. Raw materials are expected to cost $4 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost $

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

LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH for the year is expected to be $500,000 and estimated DLH for the year are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. How much cash will LouAnne need on hand to pay for February's total factory overhead costs?
If ABC plans to pay 30% of the month’s purchases during the month of purchase, 50% in the next month, and the balance two months from the month of purchase, how much would the total payments to suppliers be for the month of April?
Al Anwar ceramics, Oman estimated the sales as follows June – 2,000 units July – 3,000 units August – 4,000 units The company mentioned that finished units equal to the half the sales of the next month will be in stock at the end of each month. Estimate the production for July 2021. a. 2,500 units b. None of these c. 3500 units d. 6,500 units
Fumiture, Inc., estimates the following number of mattress sales for the first four months of 2019 Month Sales 23,000 January February March 33,800 36,600 April 35,200 Finished goods inventory at the end of December is 6,800 units. Target ending finished goods inventory is 20% of the next month's sales How many mattresses should be produced in the first quarter of 2019?
Osage Incorporated has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May June Forecast: July August 5,300 units 7,800 units September 5,900 units October 5,800 units 6,900 units 6,600 units Required: a. The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 50% of the next month's sales. It is currently estimated that there will be 2,650 units on hand at the end of June. Calculate the number of units to be produced in each of the months of July, August, and September. b. Each unit of finished product requires 8 pounds of raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 80% of the next month's estimated usage. It is currently estimated that 25,000 pounds of raw materials will be on hand at the end of June. Calculate the number of pounds of raw materials to be purchased in each of the months of July and August.…
Cop
pos Ibie Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January February 22,000 39,800 March 28,600 April 44,200 Finished goods inventory at the end of December is 6,900 units. Target ending finished goods inventory is 10% of the next month's sales. How many mattresses should be produced in the first quarter of 2019? A. 92,340 mattresses B. 68,840 mattresses TE O C. 87,920 mattresses 1 a O D. 57,760 mattresses Mi F Ju fir https: Cha The es sales 4 Missing Calculator Next http://mi tho ?3 O O O O
To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Sandhill uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2020, the company expects to declare and pay an $8,870 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase additional…
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be total cost in August if the company produces 600 units? Total Cost No.of Units 36,800 37,580 39,400 40,960 42,260 Periods January February 400 415 March 450 April 480 May 505 June 43,820 535 July 44,860 555 Select one: a. 48000 O b. 47200 Oc.53650 O d. 51350
Uli Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 47,700 units 2nd quarter, 2020 43,200 units 3rd quarter, 2020 52,200 units 4th quarter, 2020 40,800 units 1st quarter, 2021 49,300 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $300,510 of raw material on hand at the beginning of the first quarter, 2020. Uli desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Uli Industrial for 2020. Uli Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ $ $ $ $ $ $ %24 %24 %24 %24 %24
Crest Products expects the following sales of its single product Units September October November December January Required: Crest has an ending finished goods Inventory policy of 30% of the next month's sales needs. September 1 Inventory is projected to be 7,400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials Inventory includes 3,000 units of Component X and 159,000 units of Component Z. Crest desires to maintain a Component X Inventory equal to 10% of next month's production needs and a Component Z Inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. 26,800 19,700 16,100 18,700 16,000 Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) Budgeted production (units) Direct materials…
In October, November, and December, CVM Inc. expects to sell 50,000, 48,000, and 51,000 units, respectively. The company's policy is to keep an end-of-month 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 November?