FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.arrow_forwardMotorcycle Manufacturers, Inc. projected sales of 60,000 machines for the year. The estimated January 1 inventory is 6,240 units, and the desired December 31 inventory is 7,120 units. What is the budgeted production (in units) for the year? a.60,880 b.60,000 c.46,640 d.59,120arrow_forward1. WFU Corporation expects the unit sales of Product MSA to increase by 10%, while Product MA will increase by 5% of last year's sales. The company will increase the price of Product MSA by $10, while Product MA will remain the same. Prepare the budgeted revenue for the upcoming year, 20Y6 with the information below for 20Y5. Product MSA Product MA 2. WFU Corporation has a desired ending inventory of 5% of the upcoming year's sales for each year. In 20Y7, the company expects to sell 20,000 of Product MSA and 12,000 of Product MA. Prepare the company's production budget for 2016. 3. Each finished good of Product MSA and Product MA requires two materials, Product M and Product A, which are measured in pounds. Product M costs $7.50 per pound, and Product A costs $5.00 per pound. The required pounds of material per finished good and beginning and ending inventories are shown. Prepare the 20Y6 direct materials purchases budget. Product MSA Product MA Beginning inventory Ending inventory…arrow_forward
- The marketing department of Teddy Bear Company has submitted the following sales forecast for the upcoming fiscal year. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 120,000 130,000 125,000 125,000 The company expected to start the first quarter with 20,000 units in finished goods in 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 s 25,000 units. Prepare the company’s production budget for the second quarter.arrow_forwardo Flexible Budgeting) Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,300 units, April 13,900 units, May 16,900 units, and June 21,700 units. Meadow Company's ending finished goods inventory policy is 15% of the following month's sales. March 1 beginning inventory is projected to be 1.545 units. How many units will be produced in March? Multiple Choice 10.300 10.840 13,900 Help Save & Exit Submit 9,760arrow_forwardCOVID19Co produces hand tools. A sales budget for the next four months is as follows March10.700 units, April 13.600, May 16,200, and June 21.200 COVID19Co's ending finished goods inventory policy is 10% of the following month's sales. What is budgeted ending finished goods inventory for March?arrow_forward
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