1. Retailers plan to purchase certain items for the nextfive months. Retailer needs each month are given inthe table below:Month JANUnit 10FEB MAR APR302030MAY20Retailers place orders at the beginning of eachmonth. At the beginning of January the retailer hadno inventory of these items. Any remaining unitsat the end of a month will be used in the followingmonth at a cost of IDR 20/unit.The cost of each order is IDR 300.The retailer can only order in lot sizes of 10, 20, or30 units and the maximum quantity he can ordereach month is 60 units.Warehouse storage capacity is 40 units maximum,if there are more than 40 units left at the end of themonth, the units are discarded at a cost of Rp.100How many units should retailers order eachmonth?

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...

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Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
Accounting Schrank Company is trying to decide how many units of merchandise to order eoch month. Compony policy is to have20%of the next month's sales in inventory ot the end of each manth. Projected soles for August, September, and October are 47,000 units. 32000 units, and 57,000 units, respoctively. How many units must be purchased in September?
Croy Inc. has the following projected sales for the next five months: Month Salen in Unita 3,850 3,875 4, 260 4,135 3,590 April May June July August Croy's finished goods inventory policy is to have 60 percent of the next month's sales on hand at the end of each month, Direct materials cost $3.10 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,865 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,530 3,815 4,530 4,120 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $2.80 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,673 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted production for April, May, and June. Note: Do not round your intermediate calculations and round your final answers to the nearest whole number. June Budgeted Production (Units) April May
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,304, $36,973, and $39,905, respectively. Round to the nearest penny, two decimal places.
Croy Incorporated has the following projected sales for the next five months: Sales in Month April Units 3,590 May 3,840 June 4,520 4,130 3,990 July August Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,715 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
A small hardware store uses a periodic review system to control inventory andcalculate order quantities. Inventory is reviewed every 2 weeks and there is a1-week lead time for delivery. Safety stock is set at 1 week’s supply. The followingtable shows the products and the current on-hand inventory. Calculate the targetlevel and order quantity for each of the items. Use 50 weeks per year for yourcalculations.
1. Malinao Bakery forecast sales 2100 loaves of bread for the month ofJanuary. The owner would like to maintain 150 loaves of bread in itsending inventory at the end of each month. The beginning inventory at thestart of January is 50 loaves of bread. How many loaves of bread shouldMalinao Bakery produce for January?A. 2,300 loaves C. 2,200 loavesB. 2,050 loaves D. 2,250 loaves 2. If the projected or forecasted sales of Malinao Bakery for the month of Januaryis 2100 loaves of bread, beginning inventory 50 loaves and the selling price isP50 per loaves. How much are the projected sales in peso of Malinao Bakeryfor January?A. P100,000. C. P107,500.B. P100,500. D. P105,000. 3. What is the possible suggestion of the Accountant or Financial Officer to theowner of the company, if there is excess cash above its required maintainingcash balance?A. Pay all creditsB. Buy brand new carC. Purchase additional machineD. Invest in short term investments to earn additional profits. 4.…
1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February 2,700, March 3,500, April 3,700 and May 3,500 2. ABM Company would like to maintain 100 units in its ending inventory at the end of each month. 3. Beginning inventory at the start of January is 50 units. 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH FEB MARCH APRIL MAY TOTAL JAN Projected Sales Target level of ending inventories Total Less: beginning inventories Required production 5. assume selling price is PHP200/unit. 6. Sales for each month are expected to be collected as follows: • Month of sales : 20% A month after sales: 50% - 2 months after sales: 30% Note · On January Abm Company collected from previous month sales amounted to P100,000 MONTH FEB MARCH APRIL JAN MAY TOTAL Units Sales in Pesos Collection from current months sales Collection from previous months sales Collection from two months prior sales Total Collections…

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