Problem 4-8 (Algo) Production requirements [LO4-2] Sales for Gonzalez Pro's Sports Equipment are expected to be 53,000 units for the coming month. The company likes to maintain 20 percent of unit sales for each month in ending inventory. Beginning inventory is 15,000 units. How many units should the firm produce for the coming month? Answer is complete but not entirely correct. Units to be produced 45,100 X
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- RelyaTech Corporation plans to sell 31,000 units during June. RelyaTech has 12,000 units on hand at the start of the month, and plans to have 13,000 units on hand at the end of the mon.... Q) How many units must RelyaTech produce during the month to satisfy its needs above? Multiple Choice 32,000 43,000 O 44,000 O 30,000Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units o November 22,000 units o December 25,000 units o January 23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like 20,000 lbs. of direct materials at the end of October, 35,000 lbs. of direct materials at the end of November, and 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total amount of budgeted labor hours for the month of October for Journey's?Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella o October 20,000 units o November 22,000 units o December 25,000 units o January '23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like o 20,000 lbs. of direct materials at the end of October, o 35,000 lbs. of direct materials at the end of November, and • 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the cost of direct materials to be bought for the month of December for Journey's? O $184,000 O $92,000 O…
- Brannon Company expects sales of 700 units for the first quarter, 750 units for the second quarter, 800 units for the third quarter, and 900 units for the fourth quarter. If the sales price is $25 per unit, what is the expected sales for the year? A. $22,500 B. $17,500 C. $20,000 D. $78,750Practice Problem 3.2ABC Company expects sales volume to be 15,000 units in the first quarter, increasing 50% in eachsucceeding quarter. Unit sales price is P55. To meet this sales requirement, the company plans tomaintain ending finished goods inventory of 20% of each quarter’s sales volume forecast, as wellas ending raw materials inventory of 10% of each quarter’s production requirements. On January1, finished goods inventory contains 1,500 units, while direct materials inventory contains 1,050units. The ratio between the final product and the raw materials is 1:3, at an anticipated cost of P3per unit of raw material. To create the product, the company expects to utilize 1 direct labor hour.It pays its laborers P5 per hour.ABC Company expects variable manufacturing overhead costs to fluctuate on the basis of directlabor hours, as follows:• Indirect materials P5• Indirect labor hours P3• Electricity P2Meanwhile, fixed manufacturing overhead costs for the year are as follows:• Rent…5 Croy Incorporated has the following projected sales for the next five months: Sales in Units 3,470 3,870 Month April May June July August 4,600 4,155 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.10 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,670 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted production for April, May, and June. Note: Do not round your intermediate calculations and round your final answers to the nearest whole number. May June Budgeted Production (Units) April
- Question 1. RAMA Textile has a present sales of level of 30,000 Units. It has prepared the following projections for a year : Selling Price per unit Variable Cost per unit Total Cost per unit * 50 * 25 40 1 month Credit period allowed The company proposes to increase the credit period allowed to its custome from 1 month to 2 months. It is envisaged that the change in the policy as above will increase the sales by 10%. The company desires a return of 20% on its investment Vo. are required to examine the proposed Credit Policy.5. Economic Order Quantity Jimin Company requires 40,000 units for its signature product BTS. The units will be used evenly throughout the year. The cost to place one order is P 20 while the cost to carry the inventory for one year is P 0.40 per unit. REQUIRED: A) Determine the optimal order quantity (EOQ). B) How many orders should be placed within the year? C) How often should the units be ordered within a year? D) Determine the average inventory in units.Business Decision Case The sales department of Donovan Manufacturing, Inc. has completed the following sales forecast for the months of January through March 20X1 for its only two products: 50,000 units of J to be sold at $90 each and 30,000 units of K to be sold at $70 each. The desired unit inventories at March 31, 20X1, are 10% of the next quarter’s unit sales forecast, which are 60,000 units of J and 30,000 units of K. The January 1, 20X1, unit inventories were 5,000 units of J and 2,000 units of K. Each unit of J requires 3 pounds of material A and 2 pounds of material B for its manufacture; K requires 2 pounds of A and 4 pounds of B. The purchase cost of A is $9 per pound and the purchase cost of B is $5 per pound. Materials A and B on hand at January 1, 20X1, were 19,000 pounds of A and 7,000 pounds of B. Desired inventories at March 31, 20X1, are 14,000 pounds of A and 8,000 pounds of B. Each unit of J requires 0.5 hours of direct labor in the factory; each unit of K requires…
- EA4. LO 7.2 One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next month's sales. Prepare a production budget for the first four months of the year.Problem 2. JAYSON Inc. has projected sales to be P60o o00 in January. P750 000 in February, and P800 000 in March. JAYSON wans to have 50% of nexl month's sales needs on hand al the end of each month. JAYSON's cost of sales to sales ratio is 60%. Determine February purchases.Business Decision Case The sales department of Donovan Manufacturing, Inc. has completed the following sales forecast for the months of January through March 20X1 for its only two products: 50,000 units of J to be sold at $90 each and 30,000 units of K to be sold at $70 each. The desired unit inventories at March 31, 20X1, are 10% of the next quarter’s unit sales forecast, which are 60,000 units of J and 30,000 units of K. The January 1, 20X1, unit inventories were 5,000 units of J and 2,000 units of K. Each unit of J requires 3 pounds of material A and 2 pounds of material B for its manufacture; K requires 2 pounds of A and 4 pounds of B. The purchase cost of A is $9 per pound and the purchase cost of B is $5 per pound. Materials A and B on hand at January 1, 20X1, were 19,000 pounds of A and 7,000 pounds of B. Desired inventories at March 31, 20X1, are 14,000 pounds of A and 8,000 pounds of B. Each unit of J requires 0.5 hours of direct labor in the factory; each unit of K requires…