Next year’s sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. Total budgeted sales of both products for the year would be a.$264,000 b.$200,000 c.$42,000 d.$464,000

Next year’s sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. Total budgeted sales of both products for the year would be a.$264,000 b.$200,000 c.$42,000 d.$464,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 8EB: How many units are estimated to be sold if Kino, Inc., has planned production of 750,000 units, a...

See similar textbooks

Similar questions

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.
Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.60 per pipe.a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be?
A company has had stable sales and production for several years. Next year, sales are expected to increase by at least 50%. Assuming that the company maintains its policy for desired ending inventories of finished product and direct materials purchases, what will be the likely effect on the desired ending inventory of finished product? a. It will decrease b. It will be twice the size of the desired ending inventory of raw materials c. It will increase d. It will stay the same
Hammond Supplies expects sales of 235,880 units per year with carrying costs of $2.18 per unit and ordering cost of $3.1 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory? Round to the nearest whole number.
You would like to know how much should your business purchase for the month of February 2020. The December 2019 sales is 50,000 units and this is expected to increase by 1% per month. The inventory balance as of Dec. 31, 2019 is 4,000 units and you aim to maintain 10% of the month’s sale already to be on hand at the beginning of each month. So far, it is likely that the forecast for January will be achieved. Assuming that cost per unit is maintained at P40, how much would the total purchases be for February? *Note round OFF forecasted units to be sold to whole numbers and round UP the required balance to whole numbers. Thank you in advance, I really appreciate your help ^_^
You would like to know how much should your business purchase for the month of February 2020. The December 2019 sales is 50,000 units and this is expected to increase by 1% per month. The inventory balance as of Dec. 31, 2019 is 4,000 units and you aim to maintain 10% of the month’s sale already to be on hand at the beginning of each month. So far, it is likely that the forecast for January will be achieved. Assuming that cost per unit is maintained at P40, how much would the total purchases be for February? *Note round OFF forecasted units to be sold to whole numbers and round UP the required balance to whole numbers.
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 1 5,100 2 7,410 3 8,180 4 10,470 The January 1, 2020, 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 2021 are expected to be 25% higher than sales in the same quarter in 2020.Prepare quarterly production budgets for each quarter and in total for 2020. TURNEY COMPANYProduction Budgetchoose the accounting period For the Year Ending December 31, 2020For the Month Ended December 31, 2020For the Quarter Ended December 31, 2020 Product HD-240 Quarter 1 2 3 4 Year select an opening production budget item Beginning Finished Goods UnitBeginning Direct MaterialsDesired…
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,110 8,190 10,240 The January 1, 2020, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020. TURNEY COMPANY Production Budget Product HD-240 Quarter 1
The Company has two products: A and B. March sales forecast projects 15,000 units of A and 10,000 units of B are going to be sold at prices of $15 and $18, respectively. The desired ending inventory of A is 12% higher than the beginning inventory, which was 2000 units. How much are total March sales for A anticipated to be?
Ivanhoe Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 4,300 2 6,020 3 4 6,880 8,600 The January 1, 2022, inventory of HD-240 is 1,720 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.
Concord Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter 1 2 3 4 HD-240 4,300 6,020 6,880 8,600 The January 1, 2022, inventory of HD-240 is 1,720 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.
The sales forecast for birdhouses built by Splish Enterprises follows. Beginning inventory for the year is expected to be 8,000 birdhouses, and the production manager prefers to maintain an ending inventory of 15% of the next quarter's sales. Quarter Number of Birdhouses First 8,000 Second 24,000 Third 29,000 Fourth 40,000