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Jannusch Corporation makes one product. Budgeted unit sales for July, August, Se

ID: 2591818 • Letter: J

Question

Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300, and 12,700 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for August is closest to:

11,600 units

11,940 units

14,260 units

16,580 units

Pebbles Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

During the most recent month, the company started and completed two jobs--Job A and Job L. There were no beginning inventories. Data concerning those two jobs follow:

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job L is closest to:

$9,600

$6,200

$28,904

$13,104

11,600 units

11,940 units

14,260 units

16,580 units

Pebbles Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

Casting Finishing Total Estimated total machine-hours (MHs) 2,000 3,000 5,000 Estimated total fixed manufacturing overhead cost $ 9,800 $ 6,300 $ 16,100 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 2.40

During the most recent month, the company started and completed two jobs--Job A and Job L. There were no beginning inventories. Data concerning those two jobs follow:

Job A Job L Direct materials $ 15,400 $ 9,600 Direct labor cost $ 24,900 $ 6,200 Casting machine-hours 1,400 600 Finishing machine-hours 1,200 1,800

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job L is closest to:

$9,600

$6,200

$28,904

$13,104

Explanation / Answer

Budgeted production (august) = Sale in august+desired ending inventory-beginning inventory

= 11600+(13300*20%)-(11600*20%)

Budgeted production (august) = 11940 unit

so answer is b) 11940 unit

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