Question

In: Accounting

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

Time Remaining 30 minutes 47 seconds

00:30:47

To derive the raw material to purchase during an accounting period, an accountant would calculate the raw material required for production and then:

Multiple Choice

add the beginning raw-material inventory and subtract the desired ending raw-material inventory.
add the desired ending raw-material inventory and subtract the beginning raw-material inventory.
add the desired ending raw-material inventory and subtract both the beginning raw-material inventory and the expected units to be sold.
add the beginning raw-material inventory and the desired ending raw-material inventory.
subtract the beginning raw-material inventory and the desired ending raw-material inventory.

Expert Solution

Dear student, only one question is allowed at a time. I am answering the first question

1)

We have to calculate estimated total sales units and then multiply it with sales price to arrive at sales revenue

Estimated Sales for first quarter = 24,000 units

Estimated Sales for second quarter = Estimated Sales for first quarter x ( 1 + Increase / - decrease )

= 24,000 x( 1 + 04/ 100 )

= 24,000 x 1.04

= 24,960 units

Similarly,

Estimated Sales for third quarter

= 24,960 x ( 1 – 0.05 )

= 24,960 x 0.95

= 23,712 units

Estimated Sales for fourth quarter

= 24,000 x( 1 + 07/ 100 )

= 24,000 x 1.07

= 25,680 units

So, Estimated total sales units for the year

= Quarter 1 + Quarter 2 + Quarter 3 + Quarter 4

= 24,000 + 24,960 + 23,712 + 25,680

= 98,352 units

So, Estimated sales revenue for the year

= Estimated sales units x Selling price per unit

= 98,352 x $25

= $ 2,458,800

So, as per above calculations, option D is the correct option

ekkarill92 answered 2 years ago

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