Acme Manufacturing produces high quality metal storage cabinets for residential garages. Each cabinet is raised off the floor by 4 heavy duty casters, allowing the cabinets to be moved when fully loaded. Acme budgets to produce 10,000 cabinets per quarter for the next year. If Acme begins the year with 1,200 casters in inventory and desires to have sufficient casters available to meet 5% of the next quarter's production needs at the end of each quarter, how many casters will Acme need to purchase for the first quarter's production? Select one: O a. 39,300 b. 36,800 c. 43,200 d. 40,800 O O
Q: Concord Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…
A: Retail price is the price at which the product is sold to the customer. It is the sum of cost and…
Q: Rundle Manufacturing Company established the following standard price and cost data. Sales price…
A: MASTER BUDGETThe master budget provides an overall plan for the organization. It's like a big…
Q: Collinsworth Limited, a U.K. company, prepares its financial statements according to International…
A: An impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit…
Q: 1. The Go - Pro Extreme is a retail outlet that deals exclusively with Go-Pro cameras. The manager…
A: Optimal order quantity is also known as Economic Order Quantity (EOQ).EOQ is a tool used to…
Q: Need help with Operating income. What is the formula using the data in the pictures.
A: The objective of the question is to calculate the Operating Income for the four divisions of the US…
Q: Orange Corporation has budgeted sales of 23,000 units, targeted ending finishe goods inventory of…
A: To find the units produced the budgted units sold are added to the ending inventory then the…
Q: CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution…
A: In sales variance it is generally divided into two parts sales volume variance and sales price…
Q: Recording Multiple Temporary Differences, Change in Enacted Tax Rate Wittco Company reports pretax…
A: A tax liability that is listed on a company's balance sheet as owing but not yet payable taxes is…
Q: Country Jeans Co. has an annual plant capacity of 65,800 units, and current production is 45,500…
A: Relevant cost is the cost which is relevant in decision making process. These cost includes variable…
Q: 4. Prepare a direct labor cost budget for March. Hours required for production: Backyard Chef Master…
A: Direct labor budget :— This budget is prepared to estimate the number of labor hours and direct…
Q: Adams Electronics currently produces the shipping containers it uses to deliver the electronics…
A: The relevant costs are the avoidable costs that can be ignored if the alternative is not chosen. The…
Q: (Pro forma accounts receivable balance calculation) The accounts receivable for Pastors Brewing…
A: A cash collection budget is a crucial financial document that provides a detailed overview of the…
Q: The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank…
A: Under activity-based costing method, the cost is allocated to each activity based on its…
Q: On January 2, 2025, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal annual…
A: A lease is a contract in which a landlord (the lessor) offers the tenant (the lessee) the right to…
Q: Fogel Company expects to produce and sell 120,000 units for the period. The company variable…
A: The variance is the difference between the standard and actual cost production data. The…
Q: E7-6 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Av LO7-2…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Manufacturing overhead budget is the statement prepared by the entity for the purpose of determining…
Q: ABC company currently sells 1500 units of printers per year and has a Operating Cash Flow (OCF) of…
A: Formula Degree of operating leverage = Contribution margin / Operating…
Q: Maria Am Corporation uses the weighted-average method in its process costing system. The Baking…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in…
Q: A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred…
A: Total manufacturing cost= Direct material + Direct labor + Factory overheadNote- Factory overhead…
Q: Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000…
A: The objective of the question is to calculate the depreciation expense for the third year after the…
Q: Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries.…
A: Customer margin is the amount of money earned by the business entity from the customer. It is…
Q: Pharoah Company has these data at December 31, 2022, the end of its first year of operations. Debt…
A: Fair value of the securities means actual replacement value of the securities in the market.…
Q: The following buds were available for sale during the year Beginning inventory 15 units at $40 20…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: riginal cost lling hours used umber of employees hours used Billing $70,000 $119,000 2 HR 100 2 200…
A: Lets understand the basics.Cost allocation can be done using,(1) Direct method(2) Step down method…
Q: Doyle Company issued $500,000 of 10-year, 6 percent bonds on January 1, Year 1. The bonds were…
A: The basic accounting equation is the foundation of accounting and represents the relationship…
Q: Carlos Cavalas, the manager of Echo Products' Brazilian Division, is try year. The Brazilian…
A: Costing refers to the method that should be followed by an organization in recording the cost…
Q: 6 4 points 00:40:44 Skipped Assume the following information for a company that produced 10,000…
A: Absorption costing Method :— Under this method, product cost per unit includes direct material,…
Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: Executive officers of Benson Company are wrestling with their budget for the next year. The…
A: Inventory purchase budget is the statement prepared by an entity to estimate the amount of purchases…
Q: Torld Company processes 18,350 gallons of direct materials to produce two products, Product X and…
A: Answer:- Ending inventory meaning:- The value of the items that a business has available for sale at…
Q: Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects…
A: SALES BUDGET Sales budget is the Future Forcast of Sales based on Present Sinario.Sales budget is a…
Q: Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following data…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: At January 1, 2022, Porter Manufacturing revised the estimated useful life of a major piece of…
A: The objective of the question is to calculate the revised depreciation expense for the year 2022…
Q: Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the…
A: Golden Rules of Accounting:AccountDebitCreditPersonal AccountsThe ReceiverThe GiverReal AccountsWhat…
Q: When preparing adjusting entries at December 31, 2022, DC Co. discovered that sales salaries of…
A: The objective of the question is to understand the impact of an uncorrected error in the accrual of…
Q: Coronado Company is constructing a building. Construction began on February 1 and was completed on…
A: Weighted average accumulated expenditures is the measure which is determined as sum of products of…
Q: During its first year of operations, Connor Company paid $39,000 for direct materials and $19,000 in…
A: Production cost includes all expenses paid for production it means these cost are directly related…
Q: Crane Corporation is projecting a cash balance of $31,800 in its December 31, 2024, balance sheet.…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offers 12%…
A: In accounting, interest revenue refers to the income earned by an entity from interest bearing…
Q: Machinery was purchased for $400000. Freight charges amounted to $15000 and there was a cost of…
A: When acquiring, constructing, or producing long-term tangible assets such as buildings, machinery,…
Q: Antonio received 40 ISOs (each option give
A: For taxation purposes, stock options are classified as follows:-Non-qualified stock options…
Q: Job number 3782 had the following data: Direct Labor hours used: Direct Materials used: Hourly wage…
A: Total cost is the amount of cost incurred by the entity on the making of the goods. It include the…
Q: Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170…
A: Variance arises when the actual costs differ from the standard costs. The results are favorable…
Q: Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased…
A: Intangible assets must be identifiable, meaning they are separable from the entity or arise from…
Q: Metropolitans Manufacturing generated the following activity for July for its current jobs. Total…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: Novak Supply does not segregate sales and sales taxes at the time of sale. The register total for…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total…
A: The Predetermined overhead rate is the ratio of estimated manufacturing overhead costs and the…
Q: Following is partial information for the income statement of Audio Solutions Company under three…
A: Cost of Goods available for sale $ 27,756Divide: Number of units available for sale859Average Cost…
Q: River Signorini works for New & Old Apparel, which pays employees on a semimonthly basis. River's…
A: Social security tax: Employee's pension and benefit for disability are secured through the social…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. Additional data are as follows: Last month, the company used a total of 1,000 hours of labor. The companys labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product. Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period demand this period = inventory at end of this period.) a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements? b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
- If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.The Sandstone Corporation uses an injection molding machine to make a plastic product, Z35, after receiving firm orders from its customers. Sandstone estimates that it will receive 60 orders for Z35 during the coming year. Each order of Z35 will take 100 hours of machine time. The annual machine capacity is 8,000 hours. Q. Sandstone is considering introducing a new product, Y21. The company expects it will receive 30 orders of Y21 in the coming year. Each order of Y21 will take 40 hours of machine time. Assuming the demand for Z35 will not be affected by the introduction of Y21, calculate (a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product, if Sandstone introduces Y21.Flounder Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 9,000 lamps for the coming year. Division B has the capacity to manufacture 45,000 lamps annually. Sales to outside customers are estimated at 36,000 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $2 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $72,000. Consider the following independent situations.
- The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 660,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 90,000 units. However, the target ending finished goods inventory for each year is 15,000 units. Each unit (shelI) requires 6 ounces of plastic. At the beginning of the year, 250,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to two months' sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished product for the coming year. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.) Total targeted production in units 585,000 а. b. Materials to be purchased in ouncesThe Casings Plant of Wyoming Machines makes plastics shells for the company’s calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 650,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 100,000 units. However, the target ending finished goods inventory for each year is 20,000 units. Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 200,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to four months’ sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished product for the coming year. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.)Blue Spruce Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 8,200 lamps for the coming year. Division B has the capacity to manufacture 41,000 lamps annually. Sales to outside customers are estimated at 32,800 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $65,600. Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 8,200 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B Maximum transfer price paid by Division A $ $ per unit per unit
- The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components inminicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventoryfor a year is $3. Ordering cost is $30 per order and finds that deliveries from his supplier generally take 5working days. What are?(a) the optimal order quantity.(b) the expected number of orders placed each year.(c) the expected time between orders? Assume that Fisher operates on a 200-day working year.(d) the reorder point for the transistors.Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10.10 from an outside vendor. Division A needs 11,100 lamps for the coming year. Division B has the capacity to manufacture 49,600 lamps annually. Sales to outside customers are estimated at 38,500 lamps for the next year. Reading lamps are sold at $12.09 each. Variable costs are $6.87 per lamp and include $1.41 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $75,900. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11,100 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 15.25.) Per unit Minimum transfer price accepted by Division B $_ Maximum transfer…Reboot Incorporated is a manufacturer of hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be 4,000, 5,000. 9,000, and 8,000 pairs of boots in quarters 1, 2, 3, and 4, respectively. With its current production facility, the company can produce at most 7,000 pairs of boots in any quarter. Reboot would like to meet all the expected demand, so it will need to carry inventory to meet demand in the later quarters. Each pair of boots sold generates a profit of $20 per pair. Each pair of boots in inventory at the end of a quarter incurs $8 in storage and capital recovery costs. Reboot has 1,000 pairs of boots in inventory at the start of quarter 1. Reboot's top management has given you the assignment of doing some spreadsheet modeling to analyze what the production schedule should be for the next four quarters and making a recommendation.