Tough Jeans Company produces two different stylés of jeans: Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during th year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year. Tough Jeans Company Production Budget For the Year Ending December 31 Working Life Social Life Expected units to be sold (as per sales budget) Total units available Total units to be produced

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Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below: Sep sales, units 10,000 Oct sales, units 56,000 Nov sales, units 40,000 Management want enough tillers on hand to meet 10% of next month's sales. Each tiller requires 8 round blades. Management wants enough blades to meet 13% of next month's production needs. Each blade cost $4.50. What is the material budget for blades for September (in dollars)? Enter as a whole number, no commas and no dollar signs. Your Answer: Answer

Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34 per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down has budgeted production of chairs for the next four months as follows: Units March 3, 500 April 4,400 May 4,900 June 6,300 Inventory policy requires that sufficent plastic be in ending monthly inventory to satisfy 20 percent of the following month's production needs. The inventory of plastic at the beginning of March equals exactly the amount needed to satisfy the inventory policy. The ending inventory (grams) for March is 374,000 297,500 535,500 416,500

Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information: The Marketing Department estimated unit sales as follows for the remainder of the year:July    33,000    October    23,000August    76,000    November    9,500September    45,000    December    10,000The selling price of the beach umbrellas is $15 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern:30%    in the month of sale65%    in the month following sale5%    uncollectibleSales for June totaled $375,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the…

Baskin Promotions, Incorporated sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales Cost of Goods Sold Gross Profit Operating Expenses ($100,000 is fixed) Operating Income Income Taxes (30% of operating income) Net Income $ 1,400,000 820,000 580,000 418,400 161,600 48,480 $ 113, 120 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 60,000 T-shirts. Assume Baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. A performance report would indicate that net income was:

Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:   Units October 44,000 November 90,000 December 50,000 January 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following month’s production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $16 per hour. Required: Question Content Area 1. Prepare a direct materials…

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 7,000 $ 28,700 Actual pounds (q) Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3, 100) Wages and salaries ($2,500 + $0.45g) Shipping ($0.75q) Utilities ($1,210) Other ($480 + $0.01g) Total expense 2,450 3,100 5,650 5,250 1,210 550 18,210 $ 10,490 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 Revenue $ 27,400 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 2,620 2,960 6,060 4,980 1,020 1,170 18,810 Other Total expense $ 8,590 Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by…

Minty Madness Co. manufactures mint-flavoured products. Minty has four main products: Minty Cookies, Minty Ice Cream, Minty Chocolate, and Minty Gum. Maximum demand for these products is 20 units of each per month. Each product requires a different amount of mint. Since Minty only uses a specially flavoured mint in its products, it is limited to 100 kgs of mint each month. Management is reviewing its budget for the month of March, and has provided the following data: Cookies $60 $25 1.5 kg Ice Cream $90 $48 2 kg Chocolate $50 $26 0.75 kg Gum Sales price per unit Variable costs per unit Mint required per unit $40 $18 1.25 kg Required: Analyze this data and determine the best product mix for Minty Madness Co. to maximize its profitability in the month of March. Ensure that you show all your calculations.

Yarbrough Company manufactures T-shirts printed with tourist destination logos. The following table shows sales prices and projected sales volume for the summer months: (Click the icon to view the data.) Prepare a sales budget for Yarbrough Company for the three months. - X Data Table Yarbrough Company Sales Budget June, July, and August Projected Sales in Units June July August Total T-Shirt Sizes Sales Price June July August Youth T-Shirts Youth $ 7 575 500 525 Adult-Regular T-Shirts Adult-regular 17 625 900 825 Adult-oversized 18 400 500 475 Adult-Oversized T-Shirts Total sales Print Done Activate Windows Enter any number in the edit fields and then click Check Answer.