Question

In: Accounting

1. Harwinton, Inc. anticipates sales of 48,000 units, 46,000 units, and 49,000 units in July, August,...

1. Harwinton, Inc. anticipates sales of 48,000 units, 46,000 units, and 49,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in July? Multiple Choice 48,800. 47,200. 46,000. 46,800.

2..  

Oxford Industries has the following sales forecasts for its snowshoes next year:

First Quarter 25,000 pairs
Second Quarter 5 % increase over first quarter
Third Quarter 4 % decrease from second quarter
Fourth Quarter 8 % increase over first quarter

What is Oxford’s estimated sales in units for next year?

Multiple Choice

  • 103,450 pairs.

  • 95,750 pairs.

  • 100,000 pairs.

  • 101,200 pairs.

Solutions

Expert Solution

1)
Statement Showing Units to be Produce In July Month
Particulars Working Units
Sale units of July month[A] 48000
Add: Closing Units [B] (August Sale Units*40%) (40000 units*40%) 16000
Less: Opening Units [C] (July Sale Units*40%) (48000 units*40%) -19200
Units to be Produce in july month [A+B-C] 44800
Therefore 44800 units is correct answer
2)
Statement Showing total Sale units of next year
Particulars Working Pairs (Units)
First Quarter Units [A] 25000
Second Quarter Units [B]   (5% increase over first quarter) [25000*(100+5)%] 26250
Third Quarter Units [C]   (4% decrease over second quarter) [26250*(100-4)%] 25200
Fourth Quarter Units [D]   (8% increase over first quarter) [25000*(100+8)%] 27000
Total Units[A+B+C+D] 103450
Therefore 103450 pairs is correct answer

ekkarill92 answered 2 years ago
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