1. Larson, Inc., manufactures backpacks. Last year, it sold 96,000 of its basic model for $25...

1. Larson, Inc., manufactures backpacks. Last year, it sold 96,000 of its basic model for $25 per unit. The company estimates that this volume represents a 30 percent share of the current market. The market is expected to increase by 20 percent next year. Marketing specialists have determined that as a result of new competition, the company’s market share will fall to 25 percent (of this larger market). Due to changes in prices, the new price for the backpacks will be $22 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates.

Required:

Estimate Larson’s sales revenues from this model of backpack for the coming year.

2.Flex-Tite manufactures plastic parts. The inventory policy at Flex-Tite is to hold inventory equal to 136% of the average monthly sales for its main product. Sales for the following year are expected to be 936,000 units. Based on the inventory policy, the budget calls for the production of 946,000 units.
Required:

What is the beginning inventory of the component? (Do not round intermediate calculations.)

3.Cascade, Ltd., a merchandising firm, is preparing its cash budget for March. The following information is available concerning its inventories:


Inventories at beginning of March	$	288,750
Estimated purchases for March		1,132,000
Estimated cost of goods sold for March		1,158,000
Estimated payments in March for purchases in February		283,000
Estimated payments in March for purchases prior to February		51,000
Estimated payments in March for purchases in March		70	%

Required:

What are the estimated cash disbursements in March?

Solutions

Expert Solution

for formulas and calculations, refer to the image below -

In case you have any query, kindly ask in comments.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model...

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10000 direct labor hours and the Luxury requires 30000 direct labor hours. The company produces 3400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $1316000 of total inspecting costs this year. How much of the...

pro packs, inc manufactures its own backpacks, marketed to customers primarily for camping and traveling needs....

pro packs, inc manufactures its own backpacks, marketed to customers primarily for camping and traveling needs. the company is reviewing its policy for capitalizing inventory costs and wants your help to determine whether the following costs should be capitalized as part of the cost of inventory. 1) Canvas used un the construction of the packs 2) zippers purchased from YKK (a supplier), including the cost of freight for the zippers to be shipped. 3) was paid to employers operating industrial...

Newtel Inc. manufactures Cell phones. Last year Newtel sold 30,000 phones at $80 each. Total costs...

Newtel Inc. manufactures Cell phones. Last year Newtel sold 30,000 phones at $80 each. Total costs amounted to $1,800,000 of which $600,000 were considered fixed. In an attempt to improve its product, the company is considering replacing a component part that has a cost of $16 with a new and better part costing $26 per unit in the coming year. A new machine would also be needed to increase plant capacity. The machine would cost $100,000 with a useful life...

Albinson Company paid $96,000 for a two-year insurance policy on October 1 and recorded the $96,000...

Albinson Company paid $96,000 for a two-year insurance policy on October 1 and recorded the $96,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Albinson make on December 31, the end of the accounting period (no previous adjustment has been made)? Select one: A. Insurance Expense 12,000 Prepaid Insurance 12,000 B. Insurance Expense 48,000 Prepaid Insurance 48,000 C. Prepaid Insurance 12,000 Insurance Expense 12,000 D. Prepaid Insurance 84,000 Insurance Expense 84,000

Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store...

Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Cost Cost Driver Maximum Quantity Setup Cost 489,600 Number of Setups 7,200 Ordering Cost 130,000 Number of Orders 65,000 Maintenance 920,000 Number of Machine Hours 80,000 Power 88,000 Number of Kilowatt Hours 440,000 Total predicted direct labor hours for next year is 42,500. The...

Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store...

Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $244,800 Number of setups...

CollegePak Company produced and sold 73,000 backpacks during the year just ended at an average price...

CollegePak Company produced and sold 73,000 backpacks during the year just ended at an average price of $33 per unit. Variable manufacturing costs were $13.50 per unit, and variable marketing costs were $4.32 per unit sold. Fixed costs amounted to $543,000 for manufacturing and $218,400 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: 1. Compute CollegePak’s break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the...

CollegePak Company produced and sold 72,000 backpacks during the year just ended at an average price...

CollegePak Company produced and sold 72,000 backpacks during the year just ended at an average price of $32 per unit. Variable manufacturing costs were $13.00 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs amounted to $542,000 for manufacturing and $217,600 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: Compute CollegePak’s break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest...

CollegePak Company produced and sold 88,000 backpacks during the year just ended at an average price...

CollegePak Company produced and sold 88,000 backpacks during the year just ended at an average price of $48 per unit. Variable manufacturing costs were $21.00 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs amounted to $558,000 for manufacturing and $230,400 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: Compute CollegePak’s break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest...

Super Lumber Inc. is a retailer of hardwood flooring in the US. Its basic business model...

Super Lumber Inc. is a retailer of hardwood flooring in the US. Its basic business model is to offer great value, superior service, and a broad selection of high-quality hardwood flooring products. The strategic objective, or company mission, is to continue to increase revenues and profitability by strengthening its position as a leading provider of hardwood flooring within its growing market. Specific business objectives are: 1. expand its store base; 2. Improve productivity and efficiency; 3. build on core strengths;...

Subjects