Suppose Snow Whiteboards Inc. anticipates the following sales in units over the next four months. December...

 

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Suppose Snow Whiteboards Inc. anticipates the following sales in units over the next four months. December 25,500 27,500 31,500 28,500 Snow's maintains an ending inventory of two times the following month's sales. September's beginning inventory follows this policy. Material cost $16 per unit and labor cost $5 per unit. Materials are paid in the following month, while labor is paid in the month it is incurred. Fixed overhead of $8,000 is paid every month and cash dividends of $16,000 will be paid in November. Twenty five thousand units were produced in August. September October November a. Calculate the units to be produced for September, October and November. b. Calculate the total cash payments for those three months. c. What is the value of accounts payable at the end of the period? Suppose Snow Whiteboards Inc. anticipates the following sales in units over the next four months. December 25,500 27,500 31,500 28,500 Snow's maintains an ending inventory of two times the following month's sales. September's beginning inventory follows this policy. Material cost $16 per unit and labor cost $5 per unit. Materials are paid in the following month, while labor is paid in the month it is incurred. Fixed overhead of $8,000 is paid every month and cash dividends of $16,000 will be paid in November. Twenty five thousand units were produced in August. September October November a. Calculate the units to be produced for September, October and November. b. Calculate the total cash payments for those three months. c. What is the value of accounts payable at the end of the period?

Answer rating: 100% (QA)

To calculate the units to be produced for September October and November we need to consider the forecasted sales beginning inventory and ending inven... View the full answer