Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows.Quarter HD-24014,00025,60036,40048,000The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of thenext quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027.Prepare quarterly production budgets for each quarter and in total for 2027.CRANE COMPANYProduction BudgetProduct HD-240Quarter234Year Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows.QuarterHD-24014,00025,60036,40048,000The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of thenext quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027.Prepare quarterly production budgets for each quarter and in total for 2027.CRANE COMPANYProduction BudgetProduct HD-24012Quarter

Step 1: Understand the formula to get the required production per quarter. Step 2: Budgeted sales…

Answered: Crane Company produces and sells…

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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Products A and B are manufactured in a department. Sales for the year 2020 were planned as follows: (In Units) Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 A 5000 7000 10000 8000 4000 6000 8000 5000 Selling price were OMR 10 per unit for A and OMR 20 per unit for B respectively. Average sales return are 10% of Sales and there is 20% increase in selling price every quarter. According to these revised estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product B? Select one: O a. OMR 124416 O b. OMR 155520 O c. None of the option O d. OMR 100000
Paddle Up, a retailer of paddle boards, has provided you with the following information: Budgeted Sales (units) February 2022 150 March 2022 110 April 2022 70 a) Paddle Up sells each board for $400 and purchases each board for $250. b) Paddle Up plans to maintain inventory on hand at the end of each month to be 20% of next month's sales volume. You can assume this to be the situation at the end of January 2022. c) 40% of sales are made on cash basis with the remaining 60% - on credit. All credit sales are collected in the month following the sale. d) 50% of inventory purchases are made on cash basis with the remaining 50% - on credit. All credit purchases are paid in the month following the purchase. e) The following cash expenses are incurred on a monthly basis: Rent ($5,300); Wages ($5,400); Utilities ($2,100); Insurance ($600). The business also recognises $3,000 of depreciation expense each month. f) The monthly drawings by the owner Paddle Up include: $2,000 cash and 1 board for…
Violet Sales Corp, reports the year-end information from 2023 as follows: Sales (35,500 units) $284,000 Cost of goods sold 105,000 Gross margin 179,000 Operating expenses 152,000 Operating income $27,000 Violet is developing the 2024 budget. In 2024 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2024?
Al-Morooj Co. has the following sales forecasts for its hip waders next year: First Quarter 11000 units Second Quarter 4% increase over first quarter Third Quarter 8% decrease from first quarter Fourth Quarter 4% decrease over first quarter Required: Calculate the Al-Morooj's estimated sales in units for next year.
Calculate the annual economic order quantity from the attached provided below
At January 1, 2022, Oriole Company has beginning inventory of 3000 surfboards. Oriole estimates it will sell 11000 units during the first quarter of 2022 with a 10% increase in sales each for the following quarters. Oriole's policy is to maintain an ending finished goods inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $155. What is the budgeted sales revenue for the third quarter of 2022 $2247500 $2063050 $13310 5542500
The Martin Company expects its total sales in the first quarter of 2024 will be $200,000 . Martin estimates that , in each subsequent quarter , total sales will increase by 10 % of the sales in the immediately preceding quarter . Martin estimates that 60 % of each quarter's sales will be on account , and 40 % will be for cash . Of the amount on account , 75% will be collected in the same quarter the sale occurred , and 25 % will be collected in the following quarter . Assume Martin will have no accounts receivable at the beginning of 2024. The balance in the Accounts Receivable account at the end of the third quarter is expected to be: $42,000 $ 30,000 $36,300 $ 60,000 $108,900
A June sales forecast projects that 8,000 units are going to be sold at a price of $11.00 per unit. The desired ending inventory of units is 12% higher than the beginning inventory of 900 units. Merchandise purchases for June are projected to include how many units? O 8,000 units O 8,108 units O 7,892 units O 9,008 units O 8,450 units
A shirt manufacturing company expects to be able to sell 15,000 shirts in April 2022. Sales volumes are expected to grow at 5% per month cumulatively thereafter throughout 2022. The following additional information is available. 1. The company intends to carry a stock of finished garments sufficient to meet 40% of the next month's sales. 2. The company intends to carry sufficient raw material stock to meet the following month's production. 3.Estimated costs and revenues per shirt are as follows: Sales price Per shirt K 30 Raw materials Fabric at K12 per square metre (12) Dyes and cotton Direct labour at K8 per hour Fixed overheads at K4 per hour Profit (3) (4) (2) K9 Required: Prepare the following budgets on a monthly basis for each of the three months July to September 2022: (i) A sales budget showing sales units and sales revenue; (ii) A production budget (in units); (iii) A fabric purchases budget (in square metres). (iv) Labour hours and cost budget
Two products X and Z are manufactured in a department. Sales for the year 2022 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 X 8000 10000 11000 14000 Z 6000 8000 7500 5500 Selling prices in Quarter 1 were estimated as OMR 20 per unit for X and OMR 30 for Z respectively. Average sales return are 5% of Sales and 10% decrease in selling price in each quarter compared to previous one. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product X? Select one: a. 266000 b. 159600 c. 185600 d. 193914
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,100 2 7,320 3 8,280 4 10,430 The January 1, 2017, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.Prepare quarterly production budgets for each quarter and in total for 2017. TURNEY COMPANYProduction Budgetchoose the accounting period Product HD-240 Quarter 1 2 3 4 Year select an opening Production Budget item Enter a number of units Enter a number of units Enter a number of units Enter a number of units select between addition and deduction…
Sales in December (2019) were 4000 units @ sar10 per unit. Monthly sales for the first four months of the next year (2020) are forecasted as follows: Months units January 5,000 February 8,000 March 6, 000 April 5, 000 Unit selling price SAR 10 The following information given to you as follows: Normally 60% of sales are collected in the month incurred and the remainders are collected in the month following the sales. Dallah groups wants closing stock equals 10% of the following month’s budgeted sales in units. on December 31 st , 400 units were on hand. Material required for the required production units are 3,500 Mts , 4,500 Mts., and 6,500 Mts.…

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