Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Berol Company's production requirement in units of finished product for the three-month period ending September 30 is:

Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Berol Company's production requirement in units of finished product for the three-month period ending September 30 is:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EB: Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February,...

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.
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
NUBD Corp, plans to sell 200,000 units of LIB product in July and anticipate a growth in sales of 7% per month. The target ending inventory in units of the product is 80% of the next month’s estimated sales. There are 150,000 units in inventory as of the end of June. The production requirement in units of LIB for the quarter ending September 30 would be (round-off to whole number)
Grey Manufacturing Company expects sales to total 18,600 units in the first quarter, 16,000 units in the second quarter, and 23,000 units in the third quarter of the current fiscal year. Company policy is to have on hand at the end of each quarter an amount of inventory equal to 10% of the following quarter’s sales. Given this information, how many units should be scheduled for production in the second quarter?
To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year? units
Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 144 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Multiple Choice 350 units. April May June July 360 400 420 360 240 units.
Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?
LA Company, which plans to sell 200,000 units of finished product in July, anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Each unit of finished product requires 4 pounds of direct materials at a cost of P1.20 per pound. There are 800,000 pounds of direct materials in inventory on June 30. Assume LA Company plans to produce 600,000 units of finished product in the 3-month period ending September 30, and to have direct materials inventory on hand at the end of the 3-month period equal to 25% of the use in that period. The estimated cost of direct materials purchases for the 3-month period ending September 30 is
To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year?
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.
Greener Grass Fertilizer Company plans to sell 280,000 units of finished product in July and anticipates a growth rate in sales of 6 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month’s estimated sales. There are 224,000 finished units in inventory on June 30. Each unit of finished product requires 4 pounds of raw material at a cost of $1.25 per pound. There are 740,000 pounds of raw material in inventory on June 30.a. Compute the company’s total required production in units of finished product for the entire three-month period ending September 30. b. Independent of your answer to requirement 1, assume the company plans to produce 620,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month…
Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month’s estimated sales. There are 160,000 finished units in inventory on June 30. Each unit of finished product requires four pounds of raw material at a cost of $1.15 per pound. There are 700,000 pounds of raw material in inventory on June 30.Required:1. Compute the company’s total required production in units of finished product for the entire threemonth period ending September 30.2. Independent of your answer to requirement (1), assume the company plans to produce 600,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire…