1) A) Marlow Company produces hand tools. A production budget for the next four
ID: 2552475 • Letter: 1
Question
1) A)
Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,900 units, April 14,065, May 16,800, and June 21,200. Marlow Company’s ending finished goods inventory policy is 15% of the following month’s sales. Marlow plans to sell 16,700 units in May. What is budgeted ending inventory for March?
2,110
1,635
2,520
2,040
B)
Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,500 units, August 7,300, September 8,100, October 8,600. Each handbag requires 0.5 square meters of leather. Jared Inc.’s finished goods inventory policy is 10% of next month’s sales needs. Jared Inc.’s leather inventory policy is 20% of next month’s production needs. What will leather purchases be in August? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
3,767 square meters
3,592 square meters
3,675 square meters
3,617 square meters
C)
Parker Corp., which operates on a calendar year, expects to sell 3,000 units in October, and expects sales to increase 10% each month thereafter. Sales price is expected to stay constant at $10 per unit. What are budgeted revenues for the fourth quarter?
$99,000.00
$99,300.00
$30,000.00
$90,000.00
D)
Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,800 units, August 7,000, September 7,700, October 8,600. Each handbag requires 2.2 hours of unskilled labor (paid $17 per hour) and 2.4 hours of skilled labor (paid $18 per hour). How much will be paid to skilled labor during the three months July through September?
$369,000
$1,006,560
$885,600
$6,642,000
Explanation / Answer
A.
So, Answer is A. 2,110
B.
Answer is A. 3,767 Squre meters
C.
Answer is B.$99,300
D.
Answer is C. $885,600
Estimated sale in April 14,065 Ending finished goods percentage 15% Ending inventory for March (14,065*15%) 2,110Related Questions
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