1. (15 points) A sales budget is given below for one of the products manufactured by the Key
Co.:
January
February
March
April
May
June
21,000 units
36,000 units
61,000 units
41,000 units
31,000 nits
25,000 units
The inventory of finished goods at the end of each month should equal 20% of the next month's
sales. However, on December 31 the finished goods inventory totaled only 4,000 units. Each unit
of product requires three specialized electrical switches. Since the production of these specialized
switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an
ending inventory at the end of each month equal to 30% of the next month's production needs.
This requirement had been met on January 1 of the current year.
Required:
a. Prepare a budget showing the required production each month for January, February, March,
and April
b. Prepare a budget showing the quantity of switches to be purchased each month for January,
February, and March.
Business
Views: 0 Asked: 12-12 04:08:36
On this page you can find the answer to the question of the business category, and also ask your own question
Other questions in category
- bbers corporation overstated its ending inventory balance by $15,000 in the current year. what impac...
- The sales and cost data for two companies in the transportation industry are as follows:...
- For each cost item, indicate whether it would be variable or fixed with respect to the number of uni...
- Which of the following three factors affects an employee's motivation...
- True or false
- What document explains your rights and responsibilities as a federal loan borrower?...
- Which of the following is a potentional benefit of joining a business-related student organization?...
- Match the following government organizations with their healthcare and/or health information technol...
- Diane Bernick opened Bernick's Consulting. Transactions for the month of January and trial balance a...
- According to research, which of the following is true about the relationship between diversity in ma...