The manager of​ Alaina's Garden Center must make the annual purchasing plans for​ rakes, gloves, and other gardening items. One of the items the company stocks is​ Fast-Grow, a liquid fertilizer. The sales of this item are​ seasonal, with peaks in the​ spring, summer, and fall months. Quarterly demand​ (in cases) for the past two years is as​ follows:

If the expected sales for​ Fast-Grow are

1,224

cases for year​ 3, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. ​(Round all intermediate calculations to three decimal​ places.)

OC Music Company has been in business for 4 years. Data about the sales of each quarter were collected below. The manager wants use these data to forecast sales of the 5^th year. Please copy and paste it to Excel and run regression analysis. Answer the following 4 questions.

Question 16

Develop a model for trend and seasonality. Please clearly define your variables. How many independent variables do you have in your regression?

Question 17

What is the intercept in your estimated regression model? Rounded to two decimal places.

Question 18

Use the model to forecast for sales of last quarter in the 5th year. Rounded to two decimal places.

Question 19

Calculate the MAE for this time series forecast.

I need to see entire Excel file and how you set up the Intercepts.

U Balance Corporation manufactures balance bikes for toddlers.  

Each bike requires 2 tires at a cost of $4.00 per tire, 0.5 direct labor hours and 3 machine hours. Production line works are paid $13.00 per hour. The company has estimated total manufacturing overhead of $400,000 for the year and allocates overhead on the basis of machine hours. Estimated machine hours total 80,000 for the period.  The company records $5,000 in depreciation expense each month.  

Production peaks in November as the company prepares for the gift giving season that occurs in December. The company has planned to produce the following units for the last four months of the year and January of the next year:

Desired ending inventory of the tires used on the balance bikes is 25% of the next month's production needs.

1. Create a direct materials budget for the third quarter of the year for tires used on the balance bikes. At the bottom of the budget, indicate the total cost to purchase the tires.

2. Create a direct labor budget for the third quarter of the year.

3. Calculate the predetermined overhead rate for manufacturing overhead.

4. Prepare a manufacturing overhead budget for the third quarter of the year.

A discussion question is as follow: please provide a response:

thanks for giving a clear picture on GDP figures. I was hoping you will add figures for US GDP in the second quarter of 2020 to ascertain the impact of Covid-19 on the US economy and the world overall. The US real GDP has shrunk 31.4% in the second of 2020 and yet to release the third quarter figures. This is comparable to five years of economic growth wiped out in a single quarter. I will expect the GDP to continue to decline but not too drastic. The US remains the world biggest economy in nominal GDP terms. IMF has advocated for more US government stimulus. According to IMF economist Gita Gopinath, “$2.2 trillion CARES Act approved in March would increase growth in the world's biggest economy by two percentage points next year, over the 3.1 percent GDP rise currently forecast.” (Scott and Touitou, 2020). Republicans have argued that increase in the stimulus increases debt and leads to wastage which has led to current impasse in Congress. Arguments whether to approve $1.8 trillion or 2.2 Trillion with the Democrats. Do you think the assertion by the economist is accurate and what are your thoughts?

Thank you

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $340,000, and March sales totaled $370,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

Complete this question by entering your answers in the tabs below.

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

David Wong, the product manager of KiKi Company, was reviewing the production schedule for the last quarter of 2020. He noted that the company planned to sell 4,000 units during the year and keep a minimum closing inventory level at 100 units on 31 December 2020. As at 30 September 2020, the following data was reported.

Units

Inventory, 1 January 2020 0

Production 3,000

Sales 2,700

Inventory, 30 September 2020 300

At the beginning of the year, the company rented a warehouse that could store its inventory up to 1,250 units. The company had a maximum production capacity of 2,300 units per quarter.

Required:

(a) Assume that KiKi Company adopted marginal costing,
(i) what is the minimum units that the company should produce during the last quarter of 2020?

(ii) will the number of units produced affect the company’s profit or loss for the year? Explain.

(b) Assume that the company adopted absorption costing and David was given an annual bonus based on the company’s reported profit. If David wanted to maximize his bonus in 2020, how many units would he produce? Explain.

(c) Advise the management of the company on the costing method that should be chosen to determine David’s bonus?

Production Budget

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.

Unit Sales   Dollar Sales
July   31,000     $970,000
August   34,500     1,063,300
September   41,000     1,197,000
October   35,500     1,142,700
Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy.

Required:

Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Palmgren Company
Production Budget
For the Third Quarter
July   August   September   Total
Unit sales   fill in the blank 1
fill in the blank 2
fill in the blank 3
fill in the blank 4

fill in the blank 6
fill in the blank 7
fill in the blank 8
fill in the blank 9
Total needed   fill in the blank 10
fill in the blank 11
fill in the blank 12
fill in the blank 13

fill in the blank 15
fill in the blank 16
fill in the blank 17
fill in the blank 18
Units produced   fill in the blank 19
fill in the blank 20
fill in the blank 21
fill in the blank 22

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

• Required 1

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

• Required 2

What is the accounts receivable balance on June 30th?

The company for which you work recently implemented time-driven activity-based costing (TDABC) in conjunction with its enterprise resource planning (ERP) system. Management is pleased with the revised product and customer cost information that the TDABC system produces. It is now wondering how this system can be used for budgeting purposes. You have been asked to provide an example of using time-driven activity-based budgeting, given the following information:

1. There are two resources (departments): indirect labor and computer support.
2. There are two primary activities that these resources support: handling production runs and product-level support.
3. Indirect labor support is consumed as follows:

1. To handle production runs: 10 hours/run.
2. To support products: 520 hours/product.

4. Computer support is consumed as follows:

1. To handle production runs: 0.6 hours/run.
2. To support products: 52 hours/product.

5. Resource practical capacity levels:

1. Indirect labor: 20,400 hours per quarter.
2. Computer support: 520 hours per quarter.

6. Cost of supplying resources:

1. Indirect labor: $1,060,800 per quarter.
2. Computer support: $504,400 per quarter.

Required:

1. Calculate the budgeted resource cost per hour (at practical capacity) for each of the two resources, indirect labor support and computer support.

2. Determine the budgeted cost-driver rates for each of the two activities, handle production runs and support products.

3. Suppose that the total cost of resources supplied for the quarter just ended was exactly as budgeted (i.e., $1,565,200) but that only 18,400 indirect labor hours were used along with 470 computer hours. Calculate, for each resource, the cost of idle capacity.

4. After implementing a total quality management (TQM) program, the company was able to implement process-efficiency changes, the end result of which was a 20% reduction in the indirect labor time associated with the activity handling production runs. Recalculate the indirect labor cost component of the cost to handle a production run. Also, recalculate the cost of idle capacity for indirect labor assuming the original facts but with the 20% efficiency gain. Assume that in the original case facts, 16,200 of the 18,400 hours relate to the activity handling production runs (while the remaining 2,200 hours relate to the activity product-level support).

Make-or-Buy, Traditional Analysis

Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows.

The density gauge uses a subassembly that is purchased from an external supplier for $25 per unit. Each quarter, 2,260 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows:

No significant non-unit-level costs are incurred.

Morrill is considering two alternatives to supply the productive capacity for the subassembly.

Lease the needed space and equipment at a cost of $30,510 per quarter for the space and $11,300 per quarter for a supervisor. There are no other fixed expenses.

Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be $42,940, $9,040 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected.

Required:

1. Should Morrill Company make or buy the subassembly?

If it makes the subassembly, which alternative should be chosen?

Enter the relevant costs of each alternative.

2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What decision should now be made?

3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 3,164 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?