Price, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Pricemarkets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.For 2015, Price marketing managers project monthly sales of 420,000 12-ounce bottles and 170,000 1-galloncontainers. Average selling prices are estimated at $0.20 per 12-ounce bottle and $1.50 per 1-gallon container. Howmuch is the total budgeted revenue for Price, Inc., for the year ending December 31, 2015?Answer:

The sales budget is prepared to estimate the sales revenue for the period. The budget helps to…

Answered: Price, Inc., bottles and distributes…

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

Saphire, Inc., bottles and distributes mineral water from the company’s natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Q1. For 2018, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and $1.60 per 1-gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2018.
b. Al Huda enterprises supplies small water coolants to various government and private sector entities. The price for each coolant is 75 OMR and the cost is 55 OMR. On 01/01/2015, AI Huda signed a contract with SQU to supply 350 water coolants. Al Huda offers a 5% volume discount if an entity purchases 300 or more units. On 20/05/2015, Al Huda delivered 270 coolants to SQU. From past experience, Al Huda believes that SQU will meet the discount volume threshold. Required For Al Huda Enterprises: DISTR a. Prepare the journal entry, if any, on 01/01/2015 b. Prepare the journal entry on 20/05/2015
Q.Dawson Co. produces wine. The company expects to produce 2,535,000 two-liter bottles of Chablis in 2018. Dawson purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 77,000; its beginning inventory is 54,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2018.
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: Expected monthly sales for April, May, June, and July are $160,000, $ 130,000, $250,000, and $70,000, respectively. Cost of goods sold is 50 percent of expected sales. CGC's desired ending inventory is 60 percent of the following month's cost of goods sold. Monthly operating expenses are estimated to be: Salaries: $35,000. Delivery expense: 5 percent of monthly sales. Rent expense on the warehouse: $3,500. Utilities: $700. Insurance: $360. Other expenses: $460. Required: Compute the budgeted cost of purchases for each month in the second quarter. Complete the budgeted income statement for each month in the second quarter.
Graham Co. produces wine. The company expects to produce 2,530,000 two-liter bottles of Chablis in 2018. Graham purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 82,000; its beginning inventory is 54,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2018.
Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. Crane, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $28. What would be the new contribution margin per unit if managers switched to the new supplier? What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)
Nicholea Water LLC dispenses its product Nature’s Pure Water via vending machines with most current locations at food markets and pharmacy or chemist stores. The average monthly fixed cost per site is $900, while each gallon costs 18¢ to purify and sells for 30¢. (a) Determine the monthly sales volume needed to break even. (b) Nicholea’s president is negotiating for a sole-source contract with a municipal government where several sites will dispense larger amounts. The fixed cost and purification costs will be the same, but the sales price per gallon will be 30¢ for the first 5000 gallons per month and 20¢ for all above this threshold level. Determine the monthly breakeven volume at each site.
Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Caldwell buys 100, 100 units at an average unit cost of $11 and sells them at an average unit price of $21. The firm also has fixed operating costs of $250,100 for the year. Caldwell's customers are demanding a 11% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 3% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 690 and can decrease the cost of each shipment by $4 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing if the firm desires to earn the same amount of profit next…
A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottle. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order, and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.C. What is the average inventory?
A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottle. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order, and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.D. What is the re-order point (ROP) for this Carrefour?
Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2018 at the price of $90 per box. Thecompany offers a full refund to unsatisfied customers for any product returned within 30 days from the date ofpurchase. Based on historical experience, Aria expects that 3% of sales will be returned. How many performanceobligations are there in each sale of a box of soap? How much revenue should Aria recognize in January?
A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottle. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order; and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.B. What is the inventory cycle time (time between orders)?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS