Incorrect The Cabello Company buys air conditioners for $3,900 and sells them for $4,800 each; the company has the following sales forecast: April 120 units May 140 units June 180 units The company wants to maintain ending inventory for each month at 15% of the next month's sales and had 20 units on hand on April 1st. The company also has monthly rent of $15,000 and salaries of $80,000. What total dollar amount would appear on the company's sales budget for April?

Incorrect The Cabello Company buys air conditioners for $3,900 and sells them for $4,800 each; the company has the following sales forecast: April 120 units May 140 units June 180 units The company wants to maintain ending inventory for each month at 15% of the next month's sales and had 20 units on hand on April 1st. The company also has monthly rent of $15,000 and salaries of $80,000. What total dollar amount would appear on the company's sales budget for April?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
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Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Sunland Company plans to sell 11000 lawn chairs during May, 6700 in June, and 11000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Sunland produce during June? 07345 O Not enough information to determine 8350 O 6055
The Chani Company had the following sales forecast: January February March April 440 500 380 300 The company buys products for $320 each and then resells them for $430 each and pays for operating expenses of $2,100 in rent and $6,300 in salaries each month. The company maintains ending inventory of 20% of next month's sales and had 130 units of inventory at the end of last year. For January, what total dollar amount would appear in the company's purchases budget?
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GB Inc. sells 12,000 gallons of ice cream each month from its central storage facility. Monthly carrying costs are P0.10 per gallon and ordering costs are P50 per order. Ignore potential stockout costs and assume a 30-day month. What is the total inventory cost for the month? P346 per month P500 per month P1,000 per month P650 per month
Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $42. Wesley expects the following unit sales: January February March April May 3,400 3,600 4,100 3,900 3,300 Wesley's ending finished goods inventory policy is 20 percent of the next month's sales. Suppose each handisaw takes approximately 0.75 hour to manufacture, and Wesley pays an average labor wage of $18 per hour. Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.50 each. The company has an ending direct materials Inventory policy of 25 percent of the following month's production requirements. Materials other than the plastic components total $4.50 per handisaw. Manufacturing overhead for this product includes $75,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales…
The Volt Battery Company has forecast its sales in units as follows: January February March April May June July 1,000 850 800 1,300 1,550 1,700 1,400 Volt Battery always keeps an ending inventory equal to 120 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,200 units, which is consistent with this policy. Materials cost $11 per unit and are paid for in the month after purchase. Labor cost is $4 per unit and is paid in the month the cost is incurred. Overhead costs are $7,000 per month. Interest of $8,200 is scheduled to be paid in March, and employee bonuses of $13,400 will be paid in June. a. Prepare a monthly production schedule for January through June. Note: Input all amounts as positive values except Beginning Inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank be certain to enter O wherever required. Projected unit sales Desired ending inventory Total units…
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College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,003,000 in September, $2,230,000 in October, $2,376,000 in November, and $2,520,000 in December. College Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $435,000 plus 15% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. College Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases November