(S2, 2021)Woxy company is considering its forthcoming projections for budget purposes. Woxy's projected sales for next year and beginning andending inventory data are as follows:SâlesBeginning inventoryDesired ending inventory50,000 units4,000 units8,000 unitsThe selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of rawmaterials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.Woxys' budgeted total purchase cost of direct materials would beO a. $1,350,00ÓO b. $1,242,000O c. $1,206,000O d. $1,296,000O e. some other amount not listed hereO Type here to search

Direct material purchase budget shows how much quantity of direct materials needs to be purchased in…

Answered: Woxy company is considering its…

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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Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Ending Inventory Inventory Raw material* 58,000 68,000 Finished goods 98,000 68,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 570,000 units during next year, the number of units it would have to manufacture during the year would be: Multiple Choice O 600,000 units 540,000 units 512,000 units 570,000 units
The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,800 12,800 14,800 13,800 Budgeted unit sales The selling price of the company's product is $17 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $71,800. The company expects to start the first quarter with 1,770 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,970 units. Required: 1. Calculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections…
Sunland Company estimates its sales at 180000 units in the first quarter and that sales will increase by 17000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $5273500. O $3026500. O $4387000. O $6057389.
Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2022. Expected Unit Sales Add V: Desired Ending Finished Goods Inventory Total Required Units Less V: Beginning Finished Goods Inventory Required Production Units BLOSSOM COMPANY Production Budget For the Six Months Ending June 30, 2022 V 1 8000 2800 10800 Quarter D 11200 3000 14200 Six Months
Austen Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Austen anticipates selling 222,000 jars with total sales revenue of $267,000 in the first quarter of the year following the year given in the preceding table. Austen has a policy that the ending inventory of jars must be 30% of the following quarter's sales. Total sales Number of jars revenue sold Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in 1st quarter.... $ 185,000 152,500 total. 2nd quarter $ 211,000 180,500 3rd quarter 2$ 257,000 210,000 4th quarter $ 193,000 160,000 ..... Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Austen Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed Less:…
Beckett Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.10 per pound. Read the requirements. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500…
Howard Temple, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct man $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2020: Beginning Inventory Ending Inventory Direct materials 24,000 units 24,000 units Work-in-Process Inventory 0 units O units Finished Goods Inventory 2,000 units 2,500 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead. O $48,000; S96,000; $19.200 O $44,000; $88,000, $17.600 O $41.000, $82.000; $16,400 O $40,000, S80,000: $16,000 - Previous
Filmore Enterprises reports the year-end information from December 31, 2023 as follows: Sales (90,000 units) $1,170,000 Cost of goods sold $409,500 Gross margin $760,500 Operating expenses $620,100 Operating income $140,400 Filmore Enterprises is developing the next twelve- month budget. In January 2024, the company would like to increase selling prices by 3%. As a result, it is expected there will be a decrease in sales volume of 7%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. What is the budgeted operating income for the year? Budgeted Sales $Answer Budgeted cost of goods sold $Answer Budgeted gross margin $Answer Operating expenses $Answer Budgeted operating income $Answer
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $35? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 8,000 units, how many units should be produced?Answer units c. What dollar amount of materials should be purchased at $2.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively. d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an hourly rate of $16? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $45,000 and variable manufacturing…
The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,900 13,900 15,900 14,900 Budgeted unit sales The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $74,000. The company expects to start the first quarter with 2,580 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,780 units. Required: 1. alculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections…
Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units First month Second month Third month Projected sales units 10,000 12,000 15,000 Desired ending inventory is determined to be 10% of the next month’s projected sales. The expected purchase cost per unit is $50. Compute the budgeted Costs of goods sold for the next quarter. Group of answer choices $1,850,000 $600,000 $500,000 $750,000

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