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PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 34,000 54,000 27,000 54,000 Each T-shirt is expected to sell for $18. The purchasing manager buys the T-shirts for $7 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 28 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $68,000 per quarter plus 14 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter.
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ekkarill92 answered 1 year agoRelated Solutions
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h]
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
39,000
59,000
29,500
59,000
Each T-shirt is expected to sell for $14.
The purchasing manager buys the T-shirts for $6 each.
The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h]
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
34,000
54,000
27,000
54,000
Each T-shirt is expected to sell for $18.
The purchasing manager buys the T-shirts for $7 each.
The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h] Red Canyon T-shirt Company operates a chain of
T-shirt shops in the southwestern United States. The sales manager
has provided a sales forecast for the coming year, along with the
following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budgeted Unit Sales 36,000 56,000 28,000 56,000 Each T-shirt is
expected to sell for $11. The purchasing manager buys the T-shirts
for $4 each. The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h] Red Canyon T-shirt Company operates a chain of
T-shirt shops in the southwestern United States. The sales manager
has provided a sales forecast for the coming year, along with the
following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budgeted Unit Sales 46,000 72,000 36,000 72,000 Each T-shirt is
expected to sell for $21. The purchasing manager buys the T-shirts
for $8 each. The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm (LO 8-5, 8-3a, 6 g, h) Red Canyon T-shirt Company opera...
PA8-6 Preparing Operating Budgets for a Merchandising Firm (LO 8-5, 8-3a, 6 g, h) Red Canyon T-shirt Company operates a chain of T-shirt shop in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:Quarter 1Quarter 2Quarter 3Quarter 4 Budgeted Unit Sales33,00053.00026,50053,000 • Each T-shirt is expected to sell for $19. • The purchasing manager buys the T-shirts for 58 each • The company needs to have enough T-shirts on hand at the...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c, d] Wesley Power Tools manufactures a wide...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c,
d]
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 $30. Wesley expects the following
unit sales:
January
2,200
February
2,400
March
2,900
April
2,700
May
2,100
Wesley’s ending finished goods inventory policy is 20 percent of
the next month’s sales.
Suppose each handisaw
takes approximately .75 hours to manufacture, and Wesley pays an...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c, d] Wesley Power Tools manufactures a wide...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c,
d]
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 $50. Wesley expects the following
unit sales:
January
4,200
February
4,400
March
4,900
April
4,700
May
4,100
Wesley’s ending finished goods inventory policy is 30 percent of
the next month’s sales.
Suppose each handisaw
takes approximately .60 hours to manufacture, and Wesley pays an...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c, d] Wesley Power Tools manufactures a wide...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c,
d]
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 $44. Wesley expects the following
unit sales:
January
3,600
February
3,800
March
4,300
April
4,100
May
3,500
Wesley’s ending finished goods inventory policy is 30 percent of
the next month’s sales.
Suppose each handisaw
takes approximately .60 hours to manufacture, and Wesley pays an...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c, d] Wesley Power Tools manufactures a wide...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c,
d]
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 $44. Wesley expects the following
unit sales:
January
3,600
February
3,800
March
4,300
April
4,100
May
3,500
Wesley’s ending finished goods inventory policy is 30 percent of
the next month’s sales.
Suppose each handisaw
takes approximately .60 hours to manufacture, and Wesley pays an...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c, d] Wesley Power Tools manufactures a wide...
PA8-4 Preparing Operating Budget Components [LO 8-3a, b, c,
d]
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 $32. Wesley expects the following
unit sales:
January
2,400
February
2,600
March
3,100
April
2,900
May
2,300
Wesley’s ending finished goods inventory policy is 30 percent of
the next month’s sales.
Suppose each handisaw
takes approximately .60 hours to manufacture, and Wesley pays an...
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