Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,00O, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning ?inventory is 2,800 units. How many units will be produced in March 27,500 a O 40,500 b O 24,700 .c O None of the given answers 30,000 .e O 34,000 f O

Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,00O, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning ?inventory is 2,800 units. How many units will be produced in March 27,500 a O 40,500 b O 24,700 .c O None of the given answers 30,000 .e O 34,000 f O

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

Sunland Company has 1,920 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,800 and 6,000 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $5. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January. SUNLAND COMPANY Direct Materials Budget +A $ +A $
The following details taken from the books of DiDi Sdn Bhd for the year ending 31 December 2020. DiDi Sdn Bhd Statement Profit or Loss for the year ending 31 December 2020 (extract) RM RM Gross profit 44,700 Add : Discount received 410 Profit on sale of van 620 1,030 45,730 Less: Expenses Motor expenses 1,940 Wages 17,200 General expenses 830 Bad debts 520 Increase in allowance for doubtful debts 200 Depreciation : van 1,800 22,490 23,240 Statement of Financial Position as at 31 December 2019 2020 RM RM RM RM Non-current Assets Vans at cost 15,400 8,200 less Depreciation (5,300) (3,100) 10,100 5,100 Current Assets Inventory 18,600 24,000 Trade accounts receivables less provision*…
Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totaled 16,000 units in March. The end of April finished goods inventory was 4,800 units. End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. The unit to be produced for May is: A. 29,600 units. B. 28,800 units. C. 24,000 units. D. 24,800 units.
Fumiture, Inc., estimates the following number of mattress sales for the first four months of 2019 Month Sales 23,000 January February March 33,800 36,600 April 35,200 Finished goods inventory at the end of December is 6,800 units. Target ending finished goods inventory is 20% of the next month's sales How many mattresses should be produced in the first quarter of 2019?
To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Sandhill uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2020, the company expects to declare and pay an $8,870 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase additional…
Sheffield Company has 2,080 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 5,200 and 6,500 units, respectively. Two pounds of raw materials are needed for each unit, and th estimated cost per pound is $5. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January. SHEFFIELD COMPANY Direct Materials Budget For the Month Ending January 31, 2022 $ $
Kipp Industries has the following production budget for 2022: 2022 Quarter 1 3,000 Units 2022 Quarter 2 8,000 Units 2022 Quarter 3 5,000 Units 2022 Quarter 4 6,000 Units 2023 Quarter 1 5,000 Units Each unit requires 2.5 hours of direct labor and workers are paid $20 per hour. Prepare a Direct Labor Budget for each of the quarters of 2022. (No need to show the total for the year).
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…
On January 1, 2022, the Bramble Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,800; second quarter 6,960; third quarter 8,120. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 8,470 units. The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2022. BRAMBLE COMPANY Production Budget 1 Quarter 2
Tasty Foods expects to have 20,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July: April 120,000 May June July 130,000 140,000 120,000 At the end of each month the company desires its ending finished goods inventory to be 20% of the next month's projected sales (in units). The budgeted production (in units) for Tasty Foods for May should be: A. 104,000. B. 128,000. C. 130,000. D. 132,000. E. 138,000. A O B C D E
Production budget for the second quarter of 2019 shows the following desired ending inventory: April 2,000 units - May 3,000 units - June 4,000 units. Accordingly, the ending inventory for the second quarter would be Multiple Choice O O $4,000 $9,000 $2,000 $3,000
Our company provides the following sales forecast for the next three months: Sales units The company wants to end each month with ending finished goods inventory equal to 10% of the next month's sales. Finished goods inventory on December 31 is 300 units. The budgeted production units for January are: O 3,000 units. O 3,420 units. O 3,720 units. O 3,120 units. January February March 3,000 4,200 5,000 O2,880 units. please answer do not image .