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Ganezh [65]
2 years ago
11

White Corporation’s budget calls for the following sales for next year: Quarter 1 95,000 units Quarter 3 67,000 units Quarter 2

81,000 units Quarter 4 98,000 units Each unit of the product requires 5 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter.
Business
1 answer:
asambeis [7]2 years ago
3 0

Answer: & Explanation:

Production Budget q2

- Q2

sales 67,000

ending policy 4,050 (5% of Q3)

Beginning 3,350 (5% of current quarter)

Production 67,700 (sales + ending - beginning)

Raw materials Budget q2

Production Needs 338,500 (Units x 5)

ending policy 81,850 (20% of production q3)

Beginning 67,700 (20% of q2 production needs)

Purchase 352,650 (needs + desired ending - beginning)

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If Local Co. had an increase in selling expenses of $300,000​, how would that affect each of its​ margins?  ​
wariber [46]

Answer:

D. Selling expenses do not affect the gross​ margin, but the increase in such expenses will decrease the other margins.

Explanation:

As Selling expenses are charged after gross Income or profit. So, it will not effect the gross income / profit. Other margin are calculated after adjusting the selling expenses, so that will be effected. Operating Margin and Net profit margin are both effected by change in the selling expenses.

Following is the Format of income statement

Sales

Less: Cost of Sales

Gross income / Profit

Less: Operating expenses

Admin Expenses

Selling Expenses

Other Expense

Operating Income / Profit

Less: Interest expense

Less: Tax

Net Income / Profit

6 0
2 years ago
Bachmann Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the f
DaniilM [7]

Answer:

Time needed to complete the 4th unit = 57.80 hours

Explanation:

<u><em>The learning curve theory</em></u><em> states that as the cumulative output doubles the cumulative average time taken till date is reduced to a certain percentage of the previous time. This percentage is called learning rate</em>

Total time = Average time × cumulative number of units

The cumulative average time is determined using the formula below:

Y= aX^b

a - time taken for the first unit produced

b = log LR/Log 2

X- cumulative units till date

Y - cumulative average time taken for X units

LR- Learning rate

LR = 68/80 = 0.85 = 85%

<em>Time needed to complete the 4th unit</em>

= Learning rate × time take for the 2 unit

= 85% × 68

= 57.80 hours

Time needed to complete the 4th unit = 57.80 hours

8 0
2 years ago
At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The rele
eduard

Answer:

$115,000

Explanation:

Calculation for the total expected cost

First step is to find the variable cost per unit

Variable costs per unit= 60,000/40,000

Variable costs per unit= 1.50 per unit.

Second step is to find the Total variable costs

Total variable costs =50,000 units × 1.50 per units

Total variable costs=$75,000

Last step is add the total fixed costs of the amount of $40,000 to the Total variable costs of $75,000

Total expected cost =$75,000+$40,000

Total expected cost =$115,000

Therefore the total expected cost will be $115,000

3 0
2 years ago
Maryland Incorporated produces toys. Total manufacturing costs are​ $360,000 when​ 50,000 toys are produced. Of this​ amount, to
Aleonysh [2.5K]

Answer:

$458,000                

Explanation:

The computation of the total production cost in case of 85,000 toys are produced

The fixed cost is

= Total manufacturing cost - total variable cost

= $360,000 - $140,000

= $220,000

And, the variable cost per unit is

= $140,000 ÷ 50,000 toys

= $2.8

So for 85,000 toys, the total production cost is

 = Fixed cost + Variable cost × variable cost per unit

= $220,000 + 85,000 toys × $2.8

= $220,000 + $238,000

= $458,000                                                                                

5 0
2 years ago
On March 25, Osgood Company sold merchandise on account, $3,200 terms n/30. The applicable sales tax percentage is 6%. Record th
Vlad1618 [11]

Answer:

the transaction record as given below

Explanation:

given data

sold merchandise =  $3,200

terms n/30

sales tax percentage = 6%

solution

as here with 6% sale tax payable is

sale tax payable = 6% of 3,200 = $192

and account Receivable will be $192 + $3200 = $3392

so

we get here the transaction record that is as

date         title                                    Dr.              Cr.

25-Mar    Accounts Receivable        3392    

               Sale                                                      3200

               Sales tax payable                                192

25-Mar    Cost of goods sold      

               Inventory                              

3 0
2 years ago
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