UMPI Corporation manufactures and sells mini robots, a seasonal product that has peak sales in the...

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UMPI Corporation manufactures and sells mini robots, a seasonal product that has peak sales in the 3rd quarter. The following information is related to the operations for Year 2 (the upcoming year) and for the first two quarters of Year 3. A. UMPI's only product, the mini robot, sells for $88 per mini robot. Budgeted mini robot sales for the next six quarters are as follows. Note that ALL sales are made on credit. Budgeted Mini-Robot Sales 1 45,000 Year 2 Quarter 2 3 4 65,000 105,000 55,000 Year 3 Quarter 1 2 75,000 85,000 B. The sales, all made on credit, are collected as follows: 80% in the quarter sales are made with the remaining 20% in the quarter directly following the sale. On January 1 or Year 2, the company's had $70,000 in accounts receivable, all of which will be collected in the first quarter of the year. They have perfect customers who all pay their bills, so there are no bad debts to recognize. C. The company requires ending finished goods inventory at the end of each quarter to equal 25% of the budgeted mini-robot sales for the next quarter. On December 31, Year 1, UMPI had 6,500 units on hand. D. Four pounds of raw materials are required for each mini robot. UMPI requires ending raw materials inventory at the end of each quarter equal to 8% of the following quarter's production needs. On December 31, Year 1, UMPI had 22,000 pounds of raw materials on hand. E. The raw material costs $8.80 per pound. Raw material purchases are paid for in the following pattern: 65% is paid in the quarter the purchases are made and the remaining 35% is paid in the following quarter. On January 1, Year 2, UMPI's balance sheet showed $825,000 in accounts payable for raw material purchases. All this amount will be paid for in the first quarter of Year 2. UMPI Corporation manufactures and sells mini robots, a seasonal product that has peak sales in the 3rd quarter. The following information is related to the operations for Year 2 (the upcoming year) and for the first two quarters of Year 3. A. UMPI's only product, the mini robot, sells for $88 per mini robot. Budgeted mini robot sales for the next six quarters are as follows. Note that ALL sales are made on credit. Budgeted Mini-Robot Sales 1 45,000 Year 2 Quarter 2 3 4 65,000 105,000 55,000 Year 3 Quarter 1 2 75,000 85,000 B. The sales, all made on credit, are collected as follows: 80% in the quarter sales are made with the remaining 20% in the quarter directly following the sale. On January 1 or Year 2, the company's had $70,000 in accounts receivable, all of which will be collected in the first quarter of the year. They have perfect customers who all pay their bills, so there are no bad debts to recognize. C. The company requires ending finished goods inventory at the end of each quarter to equal 25% of the budgeted mini-robot sales for the next quarter. On December 31, Year 1, UMPI had 6,500 units on hand. D. Four pounds of raw materials are required for each mini robot. UMPI requires ending raw materials inventory at the end of each quarter equal to 8% of the following quarter's production needs. On December 31, Year 1, UMPI had 22,000 pounds of raw materials on hand. E. The raw material costs $8.80 per pound. Raw material purchases are paid for in the following pattern: 65% is paid in the quarter the purchases are made and the remaining 35% is paid in the following quarter. On January 1, Year 2, UMPI's balance sheet showed $825,000 in accounts payable for raw material purchases. All this amount will be paid for in the first quarter of Year 2.

Answer rating: 100% (QA)

A Sales Forecast Lets calculate the total sales for each quarter and year Year 2 Quarter 3 45000 mini robots x 88robot 3960000 Quarter 4 65000 mini robots x 88robot 5720000 Year 3 Quarter 1 105000 min... View the full answer