Question

In: Accounting

Garfield Corp. expects to sell 1,400 units of its pet beds in March and 900 units...

Garfield Corp. expects to sell 1,400 units of its pet beds in March and 900 units in April. Each unit sells for $150. Garfield’s ending inventory policy is 20 percent of the following month’s sales. Garfield pays its supplier $40 per unit.

Compute Garfield's budgeted purchases for March.

Solutions

Expert Solution

Expected sales for March 1400
Add: Desired ending inventory 180 =900*20%
Less: Beginning inventory -280 =1400*20%
Required purchases 1300
X Cost per unit 40
Budgeted purchases for March 52000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The manager at​ Tom's Taxidermy expects to sell 900 units at​ $80 each unit. In order...
The manager at​ Tom's Taxidermy expects to sell 900 units at​ $80 each unit. In order for the manager to​ breakeven, the manager must sell 100 units. What is the margin of safety in​ dollars? $72,000 $79,000 $80,000 $64,000
LongHorn Corp is analyzing a proposed project. The company expects to sell 10,000 units, plus or...
LongHorn Corp is analyzing a proposed project. The company expects to sell 10,000 units, plus or minus 4 percent. The expected variable cost per unit is $10 and the expected fixed costs are $400,000. The fixed and variable cost estimates are considered accurate within a plus or minus 10 percent range. The depreciation expense is $61,000. The tax rate is 32 percent. The sales price is estimated at $70 a unit. What is the operating cash flow under the best...
Farrow Co. expects to sell 400,000 units of its product in the next period with the...
Farrow Co. expects to sell 400,000 units of its product in the next period with the following results. Sales (400,000 units) $ 6,000,000 Costs and expenses Direct materials 800,000 Direct labor 1,600,000 Overhead 400,000 Selling expenses 600,000 Administrative expenses 1,028,000 Total costs and expenses 4,428,000 Net income $ 1,572,000 The company has an opportunity to sell 40,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit...
In 2018, X Company expects to produce and sell 66,000 units of its only product for...
In 2018, X Company expects to produce and sell 66,000 units of its only product for $34.73. The following are budgeted variable costs per unit: Direct Materials $5.39 Direct Labor $5.27 Variable Overhead $4.31 Variable selling and administrative $4.32 Total $19.29 Budgeted fixed overhead for 2018 is $187,440, and budgeted fixed selling and administrative expenses are $190,740. What is X Company's budgeted contribution margin rate for 2018?
The Mason Company produces and expects to sell 10,600 units of its product. Variable selling and...
The Mason Company produces and expects to sell 10,600 units of its product. Variable selling and administrative expense is $3.70 per unit sold and fixed selling and administrative expense is $50,000 per month. Included in the $50,000 fixed selling and administrative expense is a depreciation of $20,000. The budgeted selling and administrative cash payments for November is: $69,220. $39,220. $39,480. $89,220.
Braindead Pty Ltd expects sales of 40,000 units of Faytik101 in March. Faytik101 is its most...
Braindead Pty Ltd expects sales of 40,000 units of Faytik101 in March. Faytik101 is its most popular high performance desktop model. The sales manager is confident that between April and June, the total sales will have a 50% growth rate each month from the month before. Each unit of Faytik101 requires 50 units of a specific chip known as Slacker-2. This chip is purchased from an external supplier. The firm maintains 10% of the following month’s sales needs in inventory....
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have...
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following information from the accounting records:    Sales price (per unit) $ 124 Manufacturing costs: Fixed overhead (for the month) 14,000 Direct labor (per unit) 9 Direct materials (per unit) 33 Variable overhead (per unit) 23 Marketing and administrative costs: Fixed costs (for the month) 22,400 Variable costs (per unit) 4    Required: a. Compute the following: variable manufacturing cost per unit...
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have...
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following information from the accounting records:    Sales price (per unit) $ 133 Manufacturing costs: Fixed overhead (for the month) 16,800 Direct labor (per unit) 10 Direct materials (per unit) 33 Variable overhead (per unit) 24 Marketing and administrative costs: Fixed costs (for the month) 21,000 Variable costs (per unit) 4    Required: a. Compute the following:    1. Variable manufacturing cost...
A company expects to sell 6,000 units in April and expects sales to increase 20% each...
A company expects to sell 6,000 units in April and expects sales to increase 20% each month after. The unit sales price of $8 is expected to remain constant. The company wants ending finished goods inventory to be 15% of the next month’s sales. What are budgeted sales revenues for the second quarter? How many units will be produced in the second quarter? Round answers to nearest whole number. The raw materials ending inventory should be 20% of the next...
A new product will sell for $8. The company expects to sell around 900,000 units. (Use...
A new product will sell for $8. The company expects to sell around 900,000 units. (Use a normal distribution with a mean of 900,000 and a standard deviation of 300,000.) Fixed costs are normally distributed with a mean of $700,000 and a standard deviation of $50,000. Unit variable costs are also normally distributed with a mean of $3 and a standard deviation of $0.25. Selling expenses are lognormally distributed with a mean of $900,000 and a standard deviation of $50,000....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT