FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 76,000 May 85,000 June 116,000 July 93,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month’s unit sales. The inventory at the end of March was 11,400 units. Required: Prepare a production budget by month and in total, for the second quarter.arrow_forwardHow do I prepare the selling and administrative expense budget for the quarter ended March 31, 20X1?arrow_forwardDown Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 74,000 May 85,000 June 114,000 July 92,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. The inventory at the end of March was 7,400 units. Required: Prepare a production budget by month and in total, for the second quarter.arrow_forward
- Neon Inc. has a finished goods inventory of 20,000 units on July 1. The projected sales for July, August and September are 80,000 units, 90,000 units and 100,000 units, respectively. Its desired ending inventory is estimated as 20% of the current month’s budgeted sales. Determine the budgeted production for July. Group of answer choices 116,000 units 16,000 units 96,000 units 76,000 unitsarrow_forwardFRANCORP is preparing budgets for the quarter ending March 31. Budgeted sales for the next 5 months are as follows: January February March 16250 units 16950 units 17200 units 18350 units 17900 units April May The selling price per unit is $15. Determine the total budgeted sales for the entire quarter ending March 31st. O $756,000 O $815,000 O $850,350 O $750,550arrow_forwardFrolic Corporation has budgeted sales and production over the next quarter as follows: September ? 61,150 Sales in units Production in units Multiple Choice 68,750 The company has 4,900 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 76,000 units. Budgeted sales for September would be (in units): 59,500 July 44,500 45,250 66,800 August 56,500 56,800arrow_forward
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