Question

In: Accounting

The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:


Cardel Corporation makes one product. Budgeted unit sales are shown below:

Budgeted unit sales 

January 7,300 

February 8,600 

March 10,100 

April 13,600 

 

The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:

  • A. 11,630 units

  • B. 14,210 units

  • C. 9,050 units

  • D. 8,600 units

Solutions

Expert Solution

Correct answer will be closest to C> 9050 Unit

Detail Working for yur refrence

Feb
Quantity Sold (a)                                    8,600
Add: Desired Ending Inventory
(30% X 10100)		                                    3,030
Total Needs                                  11,630
Less: Beginning Inventory
(8600*30%)		                                    2,580
Estimated Production                                    9,050

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The firm's inventory policy is to have ending inventory equal to 10% of next month's sales.
The firm's inventory policy is to have ending inventory equal to 10% of next month's sales.Fill in the missing numbers.FebruaryMarchAprilEnding inventory5,000Beginning inventoryBudgeted sales12,00013,00019,000Budgeted production(If you get stuck on the beginning inventory for February: it is equal to the ending inventory for January, which you can compute with the available data on February sales)
1.The finished goods beginning inventory = $100,000; The finished goods ending inventory = $50,000; The work...
1.The finished goods beginning inventory = $100,000; The finished goods ending inventory = $50,000; The work in process inventory at the beginning of the year was $150,000 and at the end of the year $50,000; The raw materials inventory at the beginning of the year $80,000 and at the end of the year was $40,000. Manufacturing costs and selling and administrative expenses were as follows: indirect materials = $10,000; factory utilities = $20,000; raw material purchases = $30,000 in June...
The ending finished goods budget is generally prepared before the: Multiple Choice Production Budget. Budgeted Balance...
The ending finished goods budget is generally prepared before the: Multiple Choice Production Budget. Budgeted Balance Sheet. Manufacturing Overhead Budget. Sales Budget.
16. Assume that June’s production budget showed required production of 438,000 units, desired ending finished goods...
16. Assume that June’s production budget showed required production of 438,000 units, desired ending finished goods inventory of 29,000 units, and beginning finished goods inventory 12,500 units. What were June’s budgeted unit sales? Multiple Choice 454,500 units 421,500 units 472,250 units 414,250 units 18. Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 10% and unit sales drop...
Under applied over head 14,000 Finished goods inventory, beginning 310,000 Finished goods inventory, ending 380,000 Raw...
Under applied over head 14,000 Finished goods inventory, beginning 310,000 Finished goods inventory, ending 380,000 Raw materials inventory, beginning 110,000 Raw materials inventory, ending 95,000 Work in process inventory, beginning 105,000 Work in process inventory, ending 85,000 Selling expenses 180,000 Manufacturing overhead Applied 490,000 Direct labor 390,000 Administrative expenses 385,000 Purchases of raw materials 295,000 Sales 2,885,000 Required: 1) Prepare a schedule of Cost of Goods Sold for the year in good form? (Use the table given in the answer...
Given Information: As of December 31, 20## Beginning Ending Finished Goods Inventory              99,500        122,500 Sales &nbsp
Given Information: As of December 31, 20## Beginning Ending Finished Goods Inventory              99,500        122,500 Sales       1,750,000 Work In Process Inventory              22,000           23,500 Property Taxes (Factory)              24,000 Factory Utilities              32,000 Direct Material Used        155,000 Amortization (80 % Factory)              45,000 Direct Manufacturing Labour        400,500 Selling and Admin Expense           120,250 InDirect Manufacturing Labour           75,000 Admin Salaries           182,750 Prepare a Cost of Goods Manufactured Statement Along with an income Statement.
During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $18,000 & ending finished...
During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $18,000 & ending finished goods inventory of $17,500. Beginning work-in-process was $14,000 and ending work-in-process was 10,500. Factory overhead was $22,500. The total manufacturing costs amounted to $270,000. Use this information to determine the FY 2018 Cost of Goods Sold. (Round enter as whole dollars only.)
In a production budget, if the number of units in finished goods inventory at the end...
In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.  
When preparing a production budget, the required production equals: Budgeted sales plus beginning inventory plus desired...
When preparing a production budget, the required production equals: Budgeted sales plus beginning inventory plus desired inventory Budgeted sales minus beginning inventory plus desired inventory Budgeted sales minus beginning inventory minus desired inventory Budgeted sales plus beginning inventory minus desired inventory Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000. To attain its desired...
1.The following inventory data relate to the Reta Company: INVENTORIES Beginning Ending Finished goods $80,000 $100,000...
1.The following inventory data relate to the Reta Company: INVENTORIES Beginning Ending Finished goods $80,000 $100,000 Work in process 65,000 70,000 Direct materials 60,000 64,000 Revenues and costs for the period: Sales $740,000 Cost of goods available for sale 650,000 Total manufacturing costs 575,000 Factory overhead 154,000 Direct materials used 164,000 Selling and administrative expenses 51,000 a. Direct materials purchased b. Direct labor costs incurred c. Cost of goods sold e. How does cost of goods sold statement differ from...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT