MGAB03H3 Lecture Notes - Lecture 10: Icq, Kilogram, Accounts Payable

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peachturtle345

20 Jan 2016

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Upward inc. has projected sales to be 10,000 units in january; 12,000 units in february; 8,000 units in march;10,000 units in. Management has determined that it needs to carry 5% of the following month"s sales in ending inventory. Prepare a production budget for the first quarter, by month and in total. Assume that each unit requires 4 litres of raw materials. There are 6,000 litres of raw materials on hand at january 1. Management has decided that raw materials ending inventory should be 15% of next month"s production needs. Upward inc. pays . 50 per litre for raw materials. Prepare a raw materials budget for the first quarter, by month and in total. Include quantity of materials to purchase and cost for the purchases. Sharpe co. always holds 4% of the next month"s sales in ending inventory. Prepare a production budget for the third quarter, by month and in total.

Related Questions

A sales budget is given below for one of the productsmanufactured by the Key Co.: Sales Budget in Units January 20,000February 35,000 March 60,000 April 40,000 May 30,000 June 25,000The inventory of finished goods at the end of each month must equal17% of the next monthâs sales. On December 31, the finished goodsinventory totaled 3,400 units. Each unit of product requires threespecialized electrical switches. Since the production of thesespecialized switches by Keyâs suppliers is sometimes irregular, thecompany has a policy of maintaining an ending inventory at the endof each month equal to 36% of the next monthâs production needs.This requirement had been met on January 1 of the current year.Required: Prepare a production plan for January, February, Marchand April. (Input all amounts as positive values.) January FebruaryMarch April Total needs Units to be produced Calculate the quantityof switches to be purchased each month for January, February, Marchand in total for the quarter. (Input all amounts as positivevalues.) January February March Quarter Total needs Requiredpurchases

orchidtortoise46

Problem 1: Master Budget (20points total)

Omega, Inc. has developed thefollowing sales forecast for the first six months of the comingyear

Month	Sales (inunits)
January	30,000
February	50,000
March	70,000
April	80,000
May	60,000
June	50,000

The beginning inventory onJanuary 1 is 8,000 units. The desired ending inventory for thecoming year is to be 25 percent of next month's sales.

Each unit requires 6 units ofmaterial A at $8 per unit and 3 units of material B at $2 perunit. There are 15,000 units of A and 4,500 units of Bon hand January 1 and the desired ending inventory for these willbe 30 percent of next month's needs for the coming year.

Prepare purchasebudgets for materials A and B in units and dollars for the samemonths.

orchidmouse152

A sales budget is given below for one of the products manufacturedby the Key Co.:

	Sales Budget in Units
January	14,000
February	29,000
March	54,000
April	97,000
May	24,000
June	19,000

The inventory of finished goods at the end of each month must equal18% of the next month%u2019s sales. This requirement had been meton January 1 of the current year.

Each unit of product requires four specialized electrical switches.Since the production of these specialized switches by Key%u2019ssuppliers is sometimes irregular, the company has a policy ofmaintaining an ending inventory at the end of each month equal to34% of the next month%u2019s production needs. This requirement hadbeen met on January 1 of the current year.

Required:

Prepare a production plan for January, February, March and in totalfor the quarter. (Input all amounts as positive values.)

	January	February	March	Total
(Click to select)Budgeted salesAdd: Desired endinginventoryDeduct: Beginning inventoryDeduct: Desired endinginventoryAdd: Beginning inventory
(Click to select)Budgeted salesAdd: Desired endinginventoryDeduct: Beginning inventoryAdd: Beginning inventoryDeduct:Desired ending inventory

Total needs
(Click to select)Budgeted salesAdd: Desired endinginventoryDeduct: Desired ending inventoryDeduct: BeginninginventoryAdd: Beginning inventory

Units to be produced

raspberrybear867

MGAB03H3 Lecture Notes - Lecture 10: Icq, Kilogram, Accounts Payable

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