Answer:
Indication of Financial Statement Items:
Item Financial Statement
a. Service Revenue Income Statement
b. Utilities Expense Income Statement
c. Cash Balance Sheet
d. Accounts Payable Balance Sheet
e. Supplies Balance Sheet
f. Salaries and Wages Expense Income Statement
g. Accounts Receivable Balance Sheet
h. Common Stock Balance Sheet
i. Equipment Balance Sheet
j. Advertising Expense Income Statement
k. Dividends Retained Earnings Statement
l. Notes Payable Balance Sheet
Explanation:
a) Company A's Income Statement is a financial statement that shows its financial performance in terms of profitability. It contains the revenue and expenses. It determines the net income (excess of revenue over expenses).
b) Company A's Balance Statement is a financial statement that indicates its financial position by showing the assets, liabilities, and equities.
c) The statement of retained earnings is a financial statement that connects its income statement to the balance sheet. It shows the movement in the retained earnings.
The following information is available for Fenton Manufacturing Company at June 30:
Cash in bank account $ 11,455
Inventory of postage stamps $ 74
Money market fund balance $ 10,400
Petty cash balance $ 350
NSF checks from customers returned by bank $ 867
Postdated checks received from customers $ 791
Money orders $ 290
A nine-month certificate of deposit maturing on December 31 of current year $ 6,000 Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:_________.
Answer:
the Cash and Cash Equivalents on June 30 is $22,495
Explanation:
The computation of the Cash and Cash Equivalents on June 30 is given below:
Cash in bank account $ 11,455
Add: Money market fund balance $ 10,400
Petty cash balance $ 350
Money orders $ 290
Cash and Cash Equivalents $22,495
Therefore the Cash and Cash Equivalents on June 30 is $22,495
Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
managers on how to resolve the effects.
For a high-risk investment, managers require a high reward.
Rajiv loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Rajiv a . True or False: The government can solve the problem caused by people like Rajiv by sponsoring the show and paying for it with tax revenue collected from everyone. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False
Answer:
free rider
true
true
Explanation:
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Downtown abbey can be classified as a public good, if it is made a private good, the problem would be solved
A public good is a good that is non excludable and non rivalrous.
A private good is a good that is excludable and rivalrous. They are usually exchanged in the market by private sector businesses. It
You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment be? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
Answer: $10,607.92
Explanation:
The annual payment will be constant which means that it is an annuity.
The mortgage value is therefore the present value of the annuity.
Present value of annuity = Annuity * ( 1 - (1 + rate) ^ -number of years) / rate
100,000 = Annuity * ( 1 - (1 + 10%) ^ -30) / 10%
100,000 = Annuity * 9.4269144669883
Annuity = 100,000 / 9.4269144669883
= $10,607.92
Ransom Widgets allocates the estimated cost of its accounting department, $200,000, to its production and sales departments since the accounting department supports these departments with regard to payroll and accounts payable functions. The accounting department costs will be allocated based on the number of employees using the direct method. Information regarding employees follows:
Department Employees
Accounting 4
Production 36
Sales 12
How much of the accounting department costs will be allocated to the production and sales departments, respectively?
a. Production Sales
$150,000 $50,000
b. Production Sales
$180,000 $60,000
c. Production Sales
$1,800,000 $600,000
d. Production Sales
$22,222 $66,667
Answer:
a. Production Sales
$150,000 $50,000
Explanation:
Given that
Number of employees in Production Dept. 36
Number of employees in Sales Dept. 12
So,
Total Number of employees is
= 36 + 12
=48
Now
Cost allocated to Production Dept. is
= $200,000 × 36 ÷ 48
= $150,000.00
And, the Cost allocated to Sales Dept. is
= $200,000 × 12 ÷ 48
= $50,000.00
Gullett Corporation had $37,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $86,000 of raw materials. The journal entry to record the purchase of raw materials would include a:
Answer: See explanation
Explanation:
The journal entry to record the purchase of raw materials is analysed below:
November:
Dr Raw materials $86000
Cr Cash or account payable $86000
It should be noted that as the raw material is increasing, the raw material account will be debited while as the cash or account payable I decreasing, it is credited.
Cosmo Company reported credit sales of $345,000 for the calendar year in its first year of operations. At December 31, customers buying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500 of its accounts receivable will be uncollectible.
Required:
Prepare the necessary December 31 adjusting entry by selecting the correct account names and dollar amounts
Answer and Explanation:
The journal entry is given below:
Bad debt expense $3,500
To Allowance for doubtful debts $3,500
(Being bad debt expense is recorded)
Here bad debt expense is debited as it increased the expense and credited the allowance as it decreased the assets
Bombs Away Video Games Corporation has forecasted the following monthly sales:
January $113,000 July $58,000
February 106,000 August 58,000
March 38,000 September 68,000
April 38,000 October 98,000
May 33,000 November 118,000
June 48,000 December 136,000
Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12. Of each month's sales, 40 percent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the sale is made.
Required:
Construct a monthly production and inventory schedule in units. Beginning inventory in January is 38,000 units.
Answer:
Bombs Away Video Games Corporation
Production and Inventory Schedule
Sales Units Production units Ending Units
Beginning inventory 38,000
January 22,600 15,200 30,600
February 21,200 15,200 24,600
March 7,600 15,200 1,800
April 7,600 15,200 9,400
May 6,600 15,200 18,000
June 9,600 15,200 23,600
July 11,600 15,200 27,200
August 11,600 15,200 30,800
September 13,600 15,200 32,400
October 19,600 15,200 28,000
November 23,600 15,200 19,600
December 27,200 15,200 7,600
Explanation:
a) data and Calculations:
Sales Budget ($'000) Sales Units Production units Ending Units
Beginning inventory 38,000
January $113,000 22,600 15,200 30,600
February 106,000 21,200 15,200 24,600
March 38,000 7,600 15,200 1,800
April 38,000 7,600 15,200 9,400
May 33,000 6,600 15,200 18,000
June 48,000 9,600 15,200 23,600
July 58,000 11,600 15,200 27,200
August 58,000 11,600 15,200 30,800
September 68,000 13,600 15,200 32,400
October 98,000 19,600 15,200 28,000
November 118,000 23,600 15,200 19,600
December 136,000 27,200 15,200 7,600
Total 182,400 182,400
advantages of profit maximization
Answer:
Improved ratios will enhance investor's confidence and therefore share price.
Access to a wider range of finance because of a better image to creditors.
Long-term profits will improve liquidity and cash flows, which can be used for future investments, dividends, loan payments or retained.
Assume that, on January 1, 2021, Sosa Enterprises paid $2,140,000 for its investment in 33,000 shares of Orioles Co. Further, assume that Orioles has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,160,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,900,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Answer:
$2,152,750
Explanation:
Calculation to determine What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Acquisition price for 30% share $2,140,000
($33,000 / $110,000 * 100=30%)
Add: Net income $120,000
($ 400,000 * 30%)
Less: Dividend ($72,000)
($240,000 * 30%)
Less: Excess depreciation ($35,250)
($940,000 / 8 yrs*30%)
[$10,000,000-$7,160,000-$1,900,000)=$940,000]
Investment reported in Balance $2,152,750
Therefore the amount that Sosa Enterprises would report in its year-end 2021 balance sheet for its investment in Orioles Co is $2,152,750
The following information is available for Birch Company at December 31:
Money market fund balance $2,790
Certificate of deposit maturing June 30 of next year $10,000
Postdated checks from customers $1,475
Cash in bank account $21,430
NSF checks from customers returned by bank $650
Cash in petty cash fund $200
Inventory of postage stamps $24
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $5,000. Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of: ___________
Answer:
the cash and cash equivalent is $29,420
Explanation:
The computation of cash and cash equivalent is given below:
Money market fund balance $2790
Cash in Bank Account $21,430
Cash in Petty cash funds $200
U.S Treasury bill purchased on Dec.15 $5,000
cash and cash equivalent $29420
Hence, the cash and cash equivalent is $29,420
The same is to be considered and relevant too
Makers Corp. had additions to retained earnings for the year just ended of $553,000. The firm paid out $191,000 in cash dividends, and it has ending total equity of $4.96 million. The company currently has 240,000 shares of common stock outstanding. a. What are earnings per share
Answer:
$1.51
Explanation:
Calculation to determine the earnings per share
Using this formula
Earnings per share = (Retained Earnings + Dividend paid out) / Common stock outstanding
Let plug in the formula
Earnings per share= ($553,000+$191,000)/240,000
Earnings per share=$362,000/240,000
Earnings per share= $1.51
Therefore Earnings per share is $1.51
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $502,200. The equipment was expected to have a useful life of four years, or 9,600 operating hours, and a residual value of $41,400. The equipment was used for 3,600 hours during Year 1, 3,000 hours in Year 2, 1,700 hours in Year 3, and 1,300 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.
Answer:
Please find the complete question in the attached file.
Explanation:
[tex]Year\ \ \ \ \ \ \ \text{Straight - line method} \ \ \ \ \ \ \text{Units-of-Activitymethod}\ \ \ \ \ \ \text{Double-declining-balance method}\\\\[/tex][tex]1\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$316,800\ \ \ \ \ \ \ \ \$460,400\\\\2\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$264,000\ \ \ \ \ \ \ \ \$230,200\\\\3\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$149,600\ \ \ \ \ \ \ \ \$115,100\\\\4\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$114,400\ \ \ \ \ \ \ \ \$39,100\\\\[/tex]
[tex]Total\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\\\\[/tex]
Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Cash is $9,100 The starting balance of Inventory is $4,800 The starting balance of Retained Earnings is $24,700 1. Sell product for $30 in cash with historical cost of $24 2. Sell, deliver, and receive payment of $40 for service 3. Consume good or service and pay expense of $2 What is the final amount in Retained Earnings
Answer: $24,744
Explanation:
Final amount in retained earnings;
= Starting balance + Net income
Net income:
= Sales - Cost of good sold + Service revenue - Expense
= 30 - 24 + 40 - 2
= $44
Final amount in retained earnings:
= 24,700 + 44
= $24,744
Minor Electric has received a special... Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $11 per unit. Minor currently produces and sells 7,500 units at $12.00 each. This level represents 75% of its capacity. Production costs for these units are $13.50 per unit, which includes $9.00 variable cost and $4.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $625 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,075 on the special order, the size of the order would need to be:_______.
a. 3,400 units
b. 683 units
c. 1,700 units
d. 136 units
e. 850 units
Answer:
e. 850 units
Explanation:
Desired profit = $1,075
New machine cost = $625
Variable cost per unit = $9 per unit
Sale price per unit = $11 per unit
Order size = (Desired profit + Machine cost) / Contribution margin per unit
Order size = ($1,075 + $625) / ($11 - $9)
Order size = $1,700 / $2
Order size = 850 units
So therefore, if Minor wishes to earn $1,075 on the special order, the size of the order would need to be 850 units.
All of the following statements are true EXCEPT:_________.
A. the demand for gasoline is more elastic the longer the time elapsed.
B. the smaller the proportion of income spent on a good, the more inelastic demand will be.
C. the demand for food is less elastic than the demand for a Hawaiian vacation.
D. the demand for Nike running shoes is less elastic than the demand for shoes.
E. the demand for clothing is less elastic than the demand for blue jeans.
Answer:
D. the demand for Nike running shoes is less elastic than the demand for shoes.
Explanation:
In this the substitutes would be more for the particular brand rather than the normal running shoes. Since the demand of running shoes might be less elastic as compared to the demand of nike running shows because the consumer shifted from the nike to other brand that are popular. Plus, the elasticity of demand for running shoes is considered to be inelastic as there is many subsitutes
So, the option d is correct
John, a bachelor, after reading a book on home making, suddenly becomes twice as productive in doing household chores. This will likely make his indifference curves (between income on the vertical axis and household time on the horizontal axis) become :__________
Answer:
steeper
Explanation:
An indifference curve is a line that represent the goods combinations between the consumer that become indifferent. The indifference curve should be steep when the marginal rate of subsitution is high and the person would gave up a high amount of y in order to received very little of x
So as per the given situation, the indifference curve should become steeper
Construct an amortization schedule for the first three months and the final three months of payments for a 30-year, 7 percent mortgage in the amount of $90,000. What percentage of the third payment is principal
Answer:
a. First three months and final three months of payments:
Monthly Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $90,000.00 $525.00 $73.77 $89,926.23
2 $89,926.23 $524.57 $74.20 $89,852.03
3 $89,852.03 $524.14 $74.63 $89,777.39
358 $1,775.56 $10.36 $588.41 $1,187.15
359 $1,187.15 $6.93 $591.84 $595.30
360 $595.30 $3.47 $595.30 $0.00
b. The percentage of the third payment that is principal is 12.46% ($74.63/$598.77 * 100)
Explanation:
a) Data and Calculations:
Mortgage loan = $90,000
Interest rate = 7%
Period of mortgage = 30 years
Repayment = monthly
Monthly Pay: $598.77
Total number of payments = 360
Loan Payments = $215,558.01
Total Interest = $125,558.01
Altoon Manufacturing's records were partially destroyed in a flood. The company does not know what sales have been for the year, but it does know all sales were on account. Also, the beginning accounts receivable balance was $19,000, and its accounts receivable balance at the time of the flood was $25,000. From the beginning of the year until the flood, cash collections from credit customers were $158,000. Given this information, what are Altoon Manufacturing's sales for the year until the flood?
a. $164,000
b. $114,000
c. $202,000
d. $209,000
e. $189,000
Answer:
a. $164,000
Explanation:
The computation of the Altoon Manufacturing's sales for the year until the flood is given below:
= Cash collections + ending receivables - opening receivables
= $158,000 + $25,000 - $19,000
= $164,000
hence, the Altoon Manufacturing's sales for the year until the flood is $164,000
Therefore the first option is correct
Any point on the budget constraint Multiple Choice Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods that yield the same utility. Reflects the price of one good divided by the price of another good.
Answer: Represent a combination of two goods that are affordable
Explanation:
The budget constraint simply represents all the combinations of goods and services which a particular consumer can buy given the current prices of the goods within their given income.
The concepts of budget constraint is used in examining the parameters of the choices of the consumers. It should be noted that any point on the budget constraint simply represents a combination of two goods that are affordable.
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
Cost of goods sold……………………………….. $ 735,000
Merchandise inventory, January 1………………. 84,700
Merchandise inventory, December 31…………… 82,400
Accounts payable, January 1……………………. 54,500
Accounts payable, December 31……………….. 60,200
Answer:
$727,000
Explanation:
Calculation of cash paid for merchandise
Cost of goods sold
$735,000
Add:
Merchandise inventory, December 31
$82,400
Less:
Merchandise inventory, January 1
($84,700)
Purchases during the period
$732,700
Add:
Accounts payable, January 1
$54,500
Less:
Accounts payable, December 31
($60,200)
Cash paid for merchandise
$727,000
Price ceilings will likely result in the development of black markets. increase production as producers respond to higher consumer demand at the low ceiling price. increase the volume of transactions as we move along the demand curve. result in the accumulation of surpluses.
Answer: result in the development of black markets.
Explanation:
Price ceilings are limits on the price that can be charged for a good or service. This means that suppliers will be unable to charge a certain price regardless of the cost incurred to produce that good.
Supplier usually respond to this by producing less goods and services which would leave a shortage in the market. This shortage will result in a black market where the prices the good will then be sold at will be higher than the price ceiling as people try to get the now relatively scarce goods and services.
Sarah Wiggum would like to make a singlelump-sum investment and have $1.6 million at the time of her retirement in 32 years. She has found a mutual fund that expects to earn 4 percent annually.
How much must Sarah invest today?
If Sarah earned an annual return of 16 percent, how much must she invest today?
If Sarah can earn 4 percent annually for the next 32 years, how much will she have to invest today?
Answer and Explanation:
The computation is shown below:
When the rate of interest is 16% so the amount she invested now is
= $1,600,000 ÷ (1.16)^32
= $13,850
And, when the rate of interest is 4%, so the amount she invested now is
= $1,600,000 ÷ (1.04)^32
= $524,590
In this way it should be determined
Blue Manufacturing produces lathes at an inventory cost of $25,000 each that sell for $32,000 each. For credit-approved customers, Blue leases the lathes for $8,500 per year for five years. The lathes are guaranteed to last four years and generally have a six-year life. Collection is predictable and reasonably assured. Additionally, the lessor is aware of all costs to be incurred under the lease that will not be reimbursed by the lessor. What is the financing profit of Blue Manufacturing on a leased lathe
Answer:
The right solution is "$10,500".
Explanation:
Given values are:
Inventory cost,
= $25,000
Selling cost,
= $32,000
The financing profit will be:
= [tex]Lease\ payment - Selling\ price[/tex]
= [tex](8500\times 5) - 32000[/tex]
= [tex]42500 - 32000[/tex]
= [tex]10,500[/tex] ($)
b) Assume you are a brand manager of a clothing brand that offers formal clothing for
gents in mid-tier market segment. The brand is constantly experiencing low sales
for last six months. Being the brand manager you are given a task of carrying out
the research to identify the problem.
Answer:
Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.
Explanation:
As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.
In a research proposal, which section comes first?
a) introduction
b) literature review
c) implications and limitations
d) method
Answer:
a. introduction
Explanation:
of a proposal begins with a capsule statement.
Production Budget
Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory is 35,000 units, and the desired December 31 inventory is 20,000 units.
Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Total units available
Total units to be produced
Answer:
Pasadena Candle Inc.
Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Total units available:
Project sales 800,000
Desired ending inventory 20,000 820,000
Beginning inventory 35,000
Total units to be produced 785,000
Explanation:
a) Data and Calculations:
Projected sales of candles for the year = 800,000 candles
January 1 inventory = 35,000 units
Desired December 31 inventory = 20,000 units
Units available for sale = 820,000 (800,000 + 20,000)
Production for the year = 785,000 (820,000 - 35,000)
Purple Cab Company had 57,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 27,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,700 shares exercisable at $11 that had not been exercised by its executives. The average market price of common stock was $13. The company reported net income in the amount of $276,915 for 2021. What is the basic earnings per share (rounded)
Answer:
$3.58
Explanation:
Calculation to determine the basic earnings per share (rounded)
Using this formula
Basic earnings per share=Net income/(shares of common stock outstanding+(shares of common stock*9/12)
Let plug in the formula
Basic earnings per share=$276,915/(57,000 + (27,000 × 9/12))
Basic earnings per share=$276,915/(57,000+20,250)
Basic earnings per share=$276,915/77,250
Basic earnings per share= $3.58
(April 1 to December 31 =9 months)
Therefore Basic earnings per share is $3.58
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 64,000 $64,800 $27,900 $34,600
Units started in process 609,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Cost added during the month $856,330 $343,735 $426,740
The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 25% complete with respect to labor and overhead.
Required:
a. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
b. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month.
Answer:
Pureform, Inc.
Materials Labor Overhead
a. Equivalent units of production 657,950 640,750 640,750
b. Cost per equivalent unit $1.4 $0.58 $0.67
Explanation:
a) Data and Calculations:
Units
Work in process inventory, beginning 64,000
Units started in process 609,000
Units available for processing 673,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Materials Labor Overhead
Work in process inventory, beginning $64,800 $27,900 $34,600
Cost added during the month $856,330 $343,735 $426,740
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production:
Units Materials Labor Overhead
Units transferred out 630,000 630,000 630,000 630,000
Work in process inventory, ending 43,000 27,950 10,750 10,750
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit:
Materials Labor Overhead
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit $1.4 $0.58 $0.67
Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 29,000 units 18,500 units Desired ending inventory 34,800 units 15,100 units Region I, anticipated sales 344,000 units 273,000 units Region II, anticipated sales 192,000 units 143,000 units The unit selling price for product XXX is $5 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is a.416,000 units b.412,600 units c.599,800 units d.431,100 units
Answer:
The correct option is b.412,600 units.
Explanation:
Given:
Product XXX Product ZZZ
Estimated beginning inventory 29,000 units 18,500 units
Desired ending inventory 34,800 units 15,100 units
Region I, anticipated sales 344,000 units 273,000 units
Region II, anticipated sales 192,000 units 143,000 units
Therefore, we have:
Estimated beginning inventory for product ZZZ = 18,500 Units
Desired ending inventory for product ZZZ = 15,100 Units
Total anticipated sale at regions I and II= Region I, anticipated sales + Region II, anticipated sales = 273,000 + 143,000 = 416,000 units
Budgeted production for product ZZZ during the month = Total anticipated sale at regions I and II + Desired ending inventory for product ZZZ - Estimated beginning inventory for product ZZZ = 416,000 + 15,100 - 18,500 = 412,600 units
Therefore, the correct option is b.412,600 units.
