White Corporation’s budget calls for the following sales for next year: Quarter 1 95,000 units Quarter...

White Corporation’s budget calls for the following sales for next year: Quarter 1 95,000 units Quarter 3 67,000 units Quarter 2 81,000 units Quarter 4 98,000 units Each unit of the product requires 5 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter.

Expert Solution

ekkarill92 answered 9 months ago

White Corporation’s budget calls for the following sales for next year: Quarter 1 90,000 units Quarter...

White Corporation’s budget calls for the following sales for next year: Quarter 1 90,000 units Quarter 3 68,000 units Quarter 2 76,000 units Quarter 4 96,000 units Each unit of the product requires 3 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1....

Budgeting Direct Material The Jung corporation's budget calls for the following production Quarter1 45,000 units Quarter...

Budgeting Direct Material The Jung corporation's budget calls for the following production Quarter1 45,000 units Quarter 2 38,000 units Quarter3 34,000 units Quarter4 48,000 units Each unit of production requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30 percent of that quarter's direct material requirements. required Compute budgeted direct materials purchases for the third quarter

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,100 units) $ 1,923,200...

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,100 units) $ 1,923,200 Cost of goods sold: Direct materials $ 174,290 Direct labor 456,760 Overhead (variable overhead applied at 45% of direct labor cost) 241,000 872,050 Gross profit $ 1,051,150 Selling expenses: Sales commissions (all variable) $ 162,270 Rent (all fixed) 41,000 Insurance (all fixed) 31,000 General expenses: Salaries (all fixed) 92,500 Rent (all fixed) 77,500 Depreciation (all fixed) 51,000 455,270 Operating income $ 595,880 Required: 1....

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,500 units) $ 2,178,000...

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,500 units) $ 2,178,000 Cost of goods sold: Direct materials $ 199,650 Direct labor 484,000 Overhead (variable overhead applied at 30% of direct labor cost) 245,000 928,650 Gross profit $ 1,249,350 Selling expenses: Sales commissions (all variable) $ 161,656 Rent (all fixed) 45,000 Insurance (all short-term fixed) 35,000 General expenses: Salaries (all short-term fixed) 94,500 Rent (all short-term fixed) 79,500 Depreciation (all short-term fixed) 55,000 470,656 Operating income...

Year 1 Year 2 Year 3 Year 4 Year 5 Units Sales 75,000 95,000...

Year 1 Year 2 Year 3 Year 4 Year 5 Units Sales 75,000 95,000 125,000 130,000 140,000 Equipment Cost 61,000,000 Salvage value Units Price 650 Variable cost (per unit) 300 Fixed costs (per year) 4,300,000 Tax rate 35% NWC (% of sales) 15% Required return 12% Required Payback Period (years) 3 MACRS Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 3-year...

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,000 units) $1,860,000 Cost...

Crane Corporation’s master (static) budget for the year is shown below: Sales (60,000 units) $1,860,000 Cost of goods sold: Direct materials$168,000 Direct labor 450,000 Overhead (variable overheadapplied at 40% of direct labor cost) 240,000 858,000 Gross profit $1,002,000 Selling expenses: Sales commissions (all variable)$167,400 Rent (all fixed) 40,000 Insurance (all short-term fixed) 30,000 General expenses: Salaries (all short-term fixed) 92,000 Rent (all short-term fixed) 77,000 Depreciation (all short-term fixed) 50,000 456,400 Operating income $545,600 Required:1. During the year, the company...

Vehicle Sales: Consider the data below ( in thousands of units): year Quarter 1 Quarter 2...

Vehicle Sales: Consider the data below ( in thousands of units): year Quarter 1 Quarter 2 Quarter 3 Quarter 4 2016: 4072 4521 4452 4418 2017: 4010 4392 4399 4334 2018: 4092 4484 4277 4360 Obtain the seasonal factors and enter them into the appropriate yellow cells below: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Seasonal Factor Using the columns Year and Total (Annual Sales) below, obtain the regression equation from the Excel's Scatter Diagram Year Quarter 1...

Sales Budget XYZ Company 2018 sales forecast is as follows: Quarter 1: 7,000 Product Ace units....

Sales Budget XYZ Company 2018 sales forecast is as follows: Quarter 1: 7,000 Product Ace units. Quarter 2: 9,000 Product Ace units. Quarter 3: 10,000 Product Ace units. Quarter 4: 12,000 Product Ace units Each unit sells for $60 Production Budget The January 1, 2018 beginning inventory of Product Ace is 4,000 units. Management desires an ending inventory each quarter equal to 30% of the next Quarter's sales. Sales in the first and second quarter of 2019 are expected to...

1. Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals...

1. Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $211 per unit) $ 2,532,000 Cost of goods sold Direct materials $ 276,000 Direct labor 528,000 Production supplies 324,000 Plant manager salary 76,000 1,204,000 Gross profit 1,328,000 Selling expenses Sales commissions 96,000 Packaging 192,000 Advertising 100,000 388,000 Administrative expenses Administrative salaries 126,000 Depreciation—office equip. 96,000 Insurance 66,000 Office rent 76,000 364,000 Income from operations $ 576,000...

1. Oxford Industries has the following sales forecasts for its snowshoes next year: First Quarter 24,000...

1. Oxford Industries has the following sales forecasts for its snowshoes next year: First Quarter 24,000 pairs Second Quarter 4 % increase over first quarter Third Quarter 5 % decrease from second quarter Fourth Quarter 7 % increase over first quarter What is Oxfords estimated sales revenue for next year if each pair sells for an average of $25? Multiple Choice $2,304,000. $2,400,000. $2,404,800. $2,458,800. 2. Item10 Time Remaining 30 minutes 47 seconds 00:30:47 Item 10 Item 10 Time Remaining...

Question