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. This policy also applies to the chips and components required to assemble the finished product.

Required:

a. What are the budgeted production (in units) for each of the months between March and May?

b. How many sets of Slacker-2 does the company plan to purchase in March and April?

Expert Solution

ekkarill92 answered 1 year ago

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.

Chorus, Inc. expects quarterly sales volume for 2017 as follows: 1) 40,000 units; 2) 60,000; 3)...

Chorus, Inc. expects quarterly sales volume for 2017 as follows: 1) 40,000 units; 2) 60,000; 3) 100,000; and 4) 50,000. Additionally, Chorus expects quarterly sales volume for 2018 as follows: 1) 70,000 units; 2) 80,000; 3) 75,000; and 4) 85,000. Chorus has an inventory policy which requires ending finished goods inventory to be 30% of budgeted sales for the next quarter. (T or F) The amount of production necessary to meet the expected sales for 2017 is 275,000 units.

Joshua Studios expects the following sales in March, April and May: Sales $ Purchases $ March...

Joshua Studios expects the following sales in March, April and May: Sales $ Purchases $ March 240,000 180,000 April 250,000 210,000 May 300,000 225,000 The controller has determined that the company collects sales in the following pattern: 30% in the month of sale, 50% in the first month after sale, 10% in the second month after sale, and 10% uncollectable. Based on the agreed terms of trade with suppliers, 40% of purchases are expected to be paid in the month...

Flexed Budget for October Actual for October Output 40,000 units 40,000 units Sales $500,000 $400,000...

Flexed Budget for October Actual for October Output 40,000 units 40,000 units Sales $500,000 $400,000 Raw materials $100,000 $88,000 Labour $250,000 $180,000 Overheads $325,000 $375,000 The adverse (unfavourable) sales variance of $100,000 is best explained by-: a. an increase in the expenses incurred by the business in the period b. the sales manager and sales team not making the target level of sales c. the price the units were sold for was less than budgeted d. it is not...

26) During March, a firm expects its total sales to be $169,000, its total variable costs...

26) During March, a firm expects its total sales to be $169,000, its total variable costs to be $95,900, and its total fixed costs to be $25,900. The contribution margin for March is: Multiple Choice $73,100. $25,900. $47,200. $121,800. $95,900. 25) Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $627,000 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to...

During the most recent year, Boston (PTY) Ltd has produced the following data: Beginning inventory Units...

During the most recent year, Boston (PTY) Ltd has produced the following data: Beginning inventory Units produced 15 400 Units sold (R125 per unit) 8 200 Variable costs per unit: Direct materials R13 Direct Labor R16 Variable Overheads R8 Fixed Costs Fixed overhead per unit produced R23 Fixed selling and administrative R18 500 Required: 1. How many units are in ending inventory 2. Using absorption costing, calculate the per unit -product cost. What is the value of ending inventory? 3....

The Boswell Corporation forecasts its sales in units for the next four months as follows: March...

The Boswell Corporation forecasts its sales in units for the next four months as follows: March 16,000 April 18,000 May 15,500 June 14,000 Boswell maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in...

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...

Forecast market demand for the product of BA Ltd is 40,000 units. BA will be able...

Forecast market demand for the product of BA Ltd is 40,000 units. BA will be able to satisfy 50% of the demand. The selling price per unit is K 100. The cost of producing a unit of the product is as follows: Direct material 2 kgs @ K2.50 per kg Direct labour 4 hours @K 5 per hour Variable overhead 2 machine hours @ K 5 per machine hour Fixed overhead 6 machine hours @ K5...

1. Forecast market demand for the product of BA Ltd is 40,000 units. BA will be...

1. Forecast market demand for the product of BA Ltd is 40,000 units. BA will be able to satisfy 50% of the demand. The selling price per unit is K 100. 2. The cost of producing a unit of the product is as follows: Direct material 2 kgs @ K2.50 per kg Direct labour 4 hours @K 5 per hour Variable overhead 2 machine hours @ K 5 per machine hour Fixed overhead 6 machine hours @ K5 per machine...

Question