The Peak Company sells hiking equipment. Selling price is $185 per unit. The projected sales quantity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Peak Company sells hiking equipment. Selling price is $185 per unit. The projected sales quantity for the next quarter are as follows: Required: (i) (ii) (111) Month April May June Units to be sold 2,000 3,500 1,500 Prepare a sales budget for April, May and June. (3 marks) The company's policy is to have an ending inventory of finished product equal to 20% of next month's sales. Beginning inventory on 1 April is 270 units. Prepare a production budget for April and May. (5 marks) Each unit of finished product requires 3 kg of direct materials @ $2.50 per kg. Direct material ending inventory should be 25% of the next month's production needs. Beginning inventory on 1 April is 1,715 kg. Prepare a direct material purchase budget in kg and in dollars for April only. (6 marks) The Peak Company sells hiking equipment. Selling price is $185 per unit. The projected sales quantity for the next quarter are as follows: Required: (i) (ii) (111) Month April May June Units to be sold 2,000 3,500 1,500 Prepare a sales budget for April, May and June. (3 marks) The company's policy is to have an ending inventory of finished product equal to 20% of next month's sales. Beginning inventory on 1 April is 270 units. Prepare a production budget for April and May. (5 marks) Each unit of finished product requires 3 kg of direct materials @ $2.50 per kg. Direct material ending inventory should be 25% of the next month's production needs. Beginning inventory on 1 April is 1,715 kg. Prepare a direct material purchase budget in kg and in dollars for April only. (6 marks)
Expert Answer:
Answer rating: 100% (QA)
i Sales budget Month April May June Units to be sold 2000 3500 1500 ii Production budget Unit... View the full answer
Related Book For
Financial And Managerial Accounting
ISBN: 9.78E+12
4th Edition
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
Posted Date:
Students also viewed these accounting questions
-
Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's operations: Current Assets as of December 31 (prior...
-
Presidio Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Presidio Manufacturing's operations: Current assets as of December 31...
-
Osborne Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Osborne Manufacturings operations: Current assets as of December 31...
-
Which of the following pairs of steps in the programming process is in the correct order? a. Code the program, plan the logic b. Test the program, translate it into machine language c. Put the...
-
The principal issue in accounting for income taxes concerns when firms recognize the tax effects of temporary differences between income for book purposes and income for tax purposes. Explain.
-
The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $144,000 balance...
-
Gasification uses an oxygen-to-fuel ratio that is \(25 \%\) of the required oxygen for complete combustion. What is the amount of oxygen required to gasify \(1 \mathrm{~kg}\) of wood...
-
Jocey Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then...
-
A business has a NOL of $75,000 in 2023. Net business income is $26,000 in 2024 and $31,500 in 2025. How much of the NOL can be used to offset 2025 business income?
-
There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this property, approached John to discuss the idea of selling it to him. John is interested. Ellen knows that...
-
Harmoni Bhd. processes raw material in Department 1 from which come two main products, A and B, and a by-product, C. A is further processed in Department 2, B in Department 3, and C in Department 4....
-
An incompressible fluid flows in a duct of radius \(r_{0}\). At a particular location, the velocity distribution is \(u=U_{m}\left[1-\left(r / r_{0} ight)^{2} ight]\) and the distribution of an...
-
A flow of \(2.0 \mathrm{lbm} / \mathrm{sec}\) of air is compressed from \(14.7 \mathrm{psia}\) and \(60^{\circ} \mathrm{F}\) to \(200 \mathrm{psia}\) and \(150^{\circ} \mathrm{F}\). Cooling water...
-
Steam enters a turbine with an enthalpy of \(1600 \mathrm{Btu} / \mathrm{lbm}\) and a velocity of \(100 \mathrm{ft} /\) \(\mathrm{sec}\) at a flow rate of \(80,000 \mathrm{lbm} / \mathrm{hr}\). The...
-
Nitrogen flows in a constant-area duct. Conditions at section 1 are as follows: \(p_{1}=\) \(200 \mathrm{psia}, T_{1}=90^{\circ} \mathrm{F}\), and \(V_{1}=10 \mathrm{ft} / \mathrm{sec}\). At section...
-
In a 10 -in.-diameter duct the mass average velocity of water is \(14 \mathrm{ft} / \mathrm{sec}\). (a) What is the average velocity if the diameter changes to 6 in.? (b) Express the average velocity...
-
Consider the following table and try to choose the best project for investment. Please justify clearly how you come to the final decision: (Point: 35) Project A B State of Economy Boom Normal...
-
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
-
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the following data. An accounting assistant has prepared the detailed manufacturing...
-
Dilts Company has a unit selling price of $400, unit variable costs of $250, and fixed costs of $210,000. Compute the break-even point in sales units using (a) The mathematical equation (b) Unit...
-
Below is a series of cost of goods sold sections for companies B, M, 0 , and S. Instruction Fill in the lettered blanks to complete the cost of goods sold sections. Beginning inventory Purchases...
-
The heat of vaporization of ether is \(25.98 \mathrm{~kJ} / \mathrm{mol}\) at its boiling point, \(34.5^{\circ} \mathrm{C}\). (a) Calculate the rate of change of vapour pressure with temperature...
-
For a gas obeying the equation of state \(V=B+\frac{R T}{P}\), the Joule-Thomson coefficient is given by \[ \mu_{\mathrm{JT}}=-\frac{1}{C_{P}}\left(T \frac{d B}{d T}-B ight) \]
-
Calculate the residual enthalpy and entropy for carbon dioxide at \(393 \mathrm{~K}\) and \(12 \mathrm{MPa}\) using any equation of state.
Study smarter with the SolutionInn App