Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 6,300 1 2 3 4 8,820 10,080 12,600 The January 1, 2022, inventory of HD-240 is 2,520 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022. 1 CRANE COMPANY Production Budget Product HD-240 2 Quarter 3

Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 6,300 1 2 3 4 8,820 10,080 12,600 The January 1, 2022, inventory of HD-240 is 2,520 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022. 1 CRANE COMPANY Production Budget Product HD-240 2 Quarter 3

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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You would like to know how much should your business purchase for the month of February 2020. The December 2019 sales is 50,000 units and this is expected to increase by 1% per month. The inventory balance as of Dec. 31, 2019 is 4,000 units and you aim to maintain 10% of the month’s sale already to be on hand at the beginning of each month. So far, it is likely that the forecast for January will be achieved. Assuming that cost per unit is maintained at P40, how much would the total purchases be for February? *Note round OFF forecasted units to be sold to whole numbers and round UP the required balance to whole numbers. Thank you in advance, I really appreciate your help ^_^
You would like to know how much should your business purchase for the month of February 2020. The December 2019 sales is 50,000 units and this is expected to increase by 1% per month. The inventory balance as of Dec. 31, 2019 is 4,000 units and you aim to maintain 10% of the month’s sale already to be on hand at the beginning of each month. So far, it is likely that the forecast for January will be achieved. Assuming that cost per unit is maintained at P40, how much would the total purchases be for February? *Note round OFF forecasted units to be sold to whole numbers and round UP the required balance to whole numbers.
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Use the information below for Product A and Product B to answer the question that follow.Next year’s sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.Total budgeted sales of both products for the year would be a.$264,000 b.$200,000 c.$42,000 d.$464,000