Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

1. The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,600 units.

2. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 66,000 cc of solvent H300.

3. The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

1. Prepare a production budget for Supermix for the months July, August, September, and October.

3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

1. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 16,250 units.

2. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 81,375 cc of solvent H300.

3. The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

1. Prepare a production budget for Supermix for the months July, August, September, and October.

3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 17,200 units.

The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 108,000 cc of solvent H300.   

The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

Prepare a production budget for Supermix for the months July, August, September, and October.

Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 19,250 units.

The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 99,375 cc of solvent H300.

The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

1. Prepare a production budget for Supermix for the months July, August, September, and October.

3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Sales and Notes Receivable Transactions

The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:

Jan. 13. Sold merchandise on account to Black Tie Co., $30,300. The cost of goods sold was $18,180.
Mar. 10. Accepted a 60-day, 6% note for $30,300 from Black Tie Co. on account.
May 9. Received from Black Tie Co. the amount due on the note of March 10.
June 10. Sold merchandise on account, terms 2/10, n/30, to Holen for $11,400. Record the sale net of the discount. The cost of goods sold was $6,840.
15. Loaned $24,000 cash to Pioneer Co., receiving a 30-day, 8% note.
20. Received from Holen the amount due on the invoice of June 10, less 2% discount.
July 15. Received the interest due from Pioneer Co. and a new 60-day, 9% note as a renewal of the loan of June 15. (Record both the debit and the credit to the notes receivable account.)
Sept. 13. Received from Pioneer Co. the amount due on its note of July 15.
13. Sold merchandise on account toWycoff Co., $60,000. The cost of goods sold was $36,000.
Oct. 12. Accepted a 60-day, 6% note for $60,000 from Wycoff Co. on account.
Dec. 11. Wycoff Co. dishonored the note dated October 12.
26. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note.

Required:

Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.

Jan. 13-sale Accounts Receivable-Black Tie Co.
Sales
Jan. 13-cost Cost of Goods Sold
Inventory
Mar. 10 Notes Receivable
Accounts Receivable-Black Tie Co.
May 9 Cash
Notes Receivable
Interest Revenue
June 10-sale Accounts Receivable-Holen
Sales
June 10-cost Cost of Goods Sold
Inventory
June 15 Notes Receivable
Cash
June 20 Cash
Accounts Receivable-Holen
July 15 Notes Receivable
Cash
Notes Receivable
Interest Revenue
Sept. 13- note Cash
Notes Receivable
Interest Revenue
Sept. 13-sale Accounts Receivable-Wycoff Co.
Sales
Sept. 13-cost Cost of Goods Sold
Inventory
Oct. 12 Notes Receivable
Accounts Receivable-Wycoff Co.
Dec. 11 Accounts Receivable-Wycoff Co.
Notes Receivable
Interest Revenue
Dec. 26 Cash
Accounts Receivable-Wycoff Co.
Incorrect
Interest Revenue

Feedback

The due date is the date the note is to be paid.

Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note.

At the due date, the company records the receipt of payment on the note.

Learning Objective 6.

Check My Work

Choose which statistic to use and conduct your analysis:

Assess the differences between Southerners and Non-Southerners on Church Attendance per Month. Below are number of days per month attended by South and non-South residents.

This assignment invites you to consider how the dynamics of cultural globalization shape your own lived experiences. Your task is to choose any ONE specific cultural product, experience, or expression, and explain how it reflects the dynamics of cultural globalization. You may, for example, choose to consider the ways in which a particular food you enjoy or music you listen to demonstrates the phenomenon of ‘glocalization,’ or perhaps how the adoption of a Western style of dress or the global popularity of an American movie reflects the phenomenon of cultural homogenization. Investigate your chosen example by exploring one or two credible outside sources for further information (e.g. news sites, business websites, magazine articles, music videos, etc.). Once you have a good amount of detailed information about your specific cultural product, experience, or expression, use theoretical and empirical details drawn from your readings, and related learning materials to explain precisely how your example demonstrates the phenomenon of cultural globalization. Be sure to clearly define and explain key concepts (e.g. culture, Americanization, hybridization) using your readings, and learning materials

500-700 words

1.Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,900 units; October, 4,900 units; November, 6,900 units; and December, 8,200 units. The company’s policy is to maintain finished goods inventory equal to 60% of the next month’s sales. At the end of August, the company had 2,700 finished units on hand.

Prepare a production budget for each of the months of September, October, and November.

2.asper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $530,000 for April, $540,000 for May, and $565,000 for June. The beginning balance of Accounts Receivable is $310,000 on April 1.

Prepare a schedule of budgeted cash receipts for April, May, and June.

3.Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $91,000; May, $121,000; and June, $131,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $33,000.

Prepare a schedule of budgeted cash payments for April, May, and June.

4.

Karim Corp. requires a minimum $9,500 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,900, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

5.

Foyert Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $8,000 and the company has an outstanding loan of $4,000. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

There is a large increase in the global demand for diamonds, of which South Africa is the biggest producer. At the same time, the central bank of South Africa cuts the interest rate. Explain (with appropriate diagrams) the effects of the above events on: (a) The demand for rand (South African currency) (b) The supply of rand (c) The exchange rate of the rand against the U.S. dollar

Consider wage rates and migration flows from the low-wage South to the high-wage North, describe one shift in conditions that, by itself, could have caused the set of changes to a rise in wage rates in both South and North, and additional migration from South to North. Explain the shift and your rationale in 2-3 sentences