Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather. and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 27,700 units b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XI, 12 is budgeted to be 97700 components. c. The company maintains no work in process inventories A sales budget for the All Weather speaker is as follows April Play June July August Budgeted Sales in Units 100,000 157,000 Required: 1. Prepare a production budget for the All Weather for April, May, June and July Budgeted sales (units) Total needs 202,000 117,000 61,600 Required production April May June July

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather. and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 27,700 units b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XI, 12 is budgeted to be 97700 components. c. The company maintains no work in process inventories A sales budget for the All Weather speaker is as follows April Play June July August Budgeted Sales in Units 100,000 157,000 Required: 1. Prepare a production budget for the All Weather for April, May, June and July Budgeted sales (units) Total needs 202,000 117,000 61,600 Required production April May June July

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EB: Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February,...

See similar textbooks

Similar questions

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 months sales. Prepare a production budget for the first four months of the year.
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units of plastic resin must be issued to production for the quarter ended September?
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units are required for production for the quarter ended September?
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,300 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,000 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July…
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,500 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July…
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. What is the ending inventory of the finished goods on September?
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units of plastic resin requires to be purchased for August?
The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? OA. 20,800 OB. 15,400 13,000 11,000 9,000 OC. 27,400 OD. 28,600
Osborne Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: The data from the table are as follows: # of planters to be sold January: 3,400 February: 3,800 March: 3,300 April: 4,900 May: 4,600. Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month’s budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month’s production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements Prepare a production budget for each month in the first quarter of the year,…
The Posh Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September 13,000 15,000 7,000 Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 15% of the following month's expected production needs. How many pounds of foam does The Posh Cushion Company need to purchase in August? OA. 32,100 B. 34,500 OC. 25,500 OD. 27,600
Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units O 3,010 O 3,100 O 3,190 O 2,830 O 3,700 Jan. 2,500 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Question 8 Feb. 3,100 March. 3,700 April. 2,800 F6 F7 F8