Question: I already have the solution for this. I just need help understanding how to work the problem. PLEASE answer as thoroughly as possible. Please try

I already have the solution for this. I just need help understanding how to work the problem. PLEASE answer as thoroughly as possible. Please try to label steps and all formulas needed. Thank you so so much. I already have the solution for this. I just need help understanding

12-13 Revenues, production, and purchases budgets. The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 895,000 units. Yoshida's target ending inventory is 90,000 units, and its beginning inventory is 120,000 units. The company's budgeted selling price to its distributors and dealers is 405,000 yen () per motorcycle. Yoshida buys all its wheels from an outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 74,000 wheels, and its beginning inventory is 56,000 wheels. The budgeted purchase price is 12,000 yen () per wheel. 1. Compute the budgeted revenues in yen. 2. Compute the number of motorcycles that Yoshida should produce. 3. Compute the budgeted purchases of wheels in units and in yen. 4. What actions can Yoshida's managers take to reduce budgeted purchasing costs of wheels assuming the same budgeted sales for Model G? 12-14 Revenues and production budget. Posh, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Posh markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. 1. For 2013, Posh marketing managers project monthly sales of 420,000 12-ounce bottles and 170,000 1-gallon containers. Average selling prices are estimated at $0.20 per 12-ounce bottle and $1.50 per 1-gallon container. Prepare a revenues budget for Posh, Inc., for the year ending December 31, 2013. What questions might the CEO ask of the marketing manager when reviewing the budget? 2. Posh begins 2013 with 890,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2013, be no less than 680,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Posh must produce during 2013? What questions might the CEO ask of the operating manager when reviewing the budget? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2013, be 240,000 units. If the production budget calls for Posh to produce 1,900,000 1-gallon containers during 2013, what is the beginning inventory of 1-gallon containers on January 1, 2013

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!