You are the manager of the production plant for ABC company. The company prepares master budgets...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are the manager of the production plant for ABC company. The company prepares master budgets based on the following: • ABC expects to start the first quarter with 2,100 units in finished goods inventory. Desired ending finished goods inventory each quarter equals 15% of the next quarter's budgeted sales. • Desired ending finished goods inventory for the fourth quarter is 2,350 units. Budgeted sales in units for the year are as follows: 1st quarter 8,200 2nd quarter 10,200 3rd quarter 12,200 4th quarter 11,200 . 0 The new Analyst has prepared the production budget for your review. For the production budget presented below, identify at least two errors and provide an explanation of each error and provide both an explanation of the correction needed and the corrected calculated values. Budgeted sales (units) Desired ending inventory Total units needed Beginning inventory Required production Production Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 8,200 10,200 12,200 11,200 41,800 2,100 1,830 1,680 2,350 7.390 9,730 12,030 13,880 13,550 44,150 2,100 1,830 1,680 2,350 2,350 7,630 10,500 12,050 11,870 42,050 You are the manager of the production plant for ABC company. The company prepares master budgets based on the following: • ABC expects to start the first quarter with 2,100 units in finished goods inventory. Desired ending finished goods inventory each quarter equals 15% of the next quarter's budgeted sales. • Desired ending finished goods inventory for the fourth quarter is 2,350 units. Budgeted sales in units for the year are as follows: 1st quarter 8,200 2nd quarter 10,200 3rd quarter 12,200 4th quarter 11,200 . 0 The new Analyst has prepared the production budget for your review. For the production budget presented below, identify at least two errors and provide an explanation of each error and provide both an explanation of the correction needed and the corrected calculated values. Budgeted sales (units) Desired ending inventory Total units needed Beginning inventory Required production Production Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 8,200 10,200 12,200 11,200 41,800 2,100 1,830 1,680 2,350 7.390 9,730 12,030 13,880 13,550 44,150 2,100 1,830 1,680 2,350 2,350 7,630 10,500 12,050 11,870 42,050
Expert Answer:
Answer rating: 100% (QA)
Show formula version of the same sheet 1 2 3 4 5 10 6 7 8 9 10 11 12 13 14 15 A B Budgeted sales Uni... View the full answer
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date:
Students also viewed these accounting questions
-
You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails you sell are a standardized commodity; stores view your nails as identical to those available from...
-
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these...
-
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have just changed your delivery process in an effort to reduce the mean time between the order and completion...
-
You want to short a 6-month forward contract on a stock. You contacted your bank and were offered a forward price of $39.85 [Note: This forward price is available only to customers who want to take a...
-
Marytown Energy, an electric utility, reports the following information about its income taxes for three recent years (amounts in millions of U.S. dollars): a. Give the journal entries that Marytown...
-
Determine the volume expansivity, P, and the isothermal compressibility, T, for water at 20C, 5 MPa and at 300C, and 15 MPa using the steam tables.
-
The Madison Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: During 2019, \(\$ 27,000\) of cash dividends were declared and paid. A patent valued...
-
The new director of special events at a large university has decided to completely revamp graduation ceremonies. Toward that end, a PERT chart of the major activities has been developed. The chart...
-
Question 1. Please research information for Australian Foundation Investment company, pick out examples of non-current assets, the measurement of these non-current assets, depreciation policies used...
-
The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Debits Credits Cash $26,300 17,100 Accounts Receivable Prepaid Insurance Land 15,400 165,000...
-
1. Compare and contrast the various staffing models. What staffing model would you choose and why? NO SHORT ANSWERS MAKE SURE TO GIVE A GOOD DETAILED EXPLANATION MAKE SURE TO GET REFERENCE SOURCES...
-
On 1 / 1 / 2 0 1 5 , Tree Corp. purchased 8 0 % of the outstanding stock of Sloan Corp. for $ 5 0 0 , 0 0 0 cash. Tree Corp. determined that the fair value Sloan\'s net identifiable assets was $ 6 5...
-
Evaluate the integral. 9,2 r+8 dr
-
(c) Data Table 2 shows data taken in a free-fall experiment. Measurements were made of the distance of fall (19 at each of four precisely measured times. Complete the table. Use only the proper...
-
Seven Sages, LLC made $400,000 is sales during the month of July, of which 30% constituted cash sales. The remaining amount were sales made on credit. In August, sales on account totaled $300,000,...
-
Discuss your organizationscorporate, business and functional strategies. How does each general level of strategy relate to human resource management? If you are currently unemployed, you can research...
-
Chinese Wall model: consider following COIs and CDs: Bank COI class: Chase Bank, US Bank, Citi Bank Gas Company COI class: Shell, BP, ARCO, Union76 Beverage class: Coca cola, Pepsi a. Assume we have...
-
What are the typical record-at-a-time operations for accessing a file? Which of these depend on the current file record?
-
Del Monte has a long and rich tradition in the American food processing industry. It is perhaps best known for packaging canned fruits and vegetables. Part of its success has involved acquiring other...
-
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. Arecent report indicates that nearly 50 Americans contract HIV...
-
According to BusinessWeek Online, worldwide spending on IT services and outsourcing are expected to modestly grow through the end of this decade. Growth in business-process outsourcing (BPO)the...
-
The following production information about quality costs has been gathered for September: Using these data, calculate the following: a. Total cost to rework b. Profit lost from not reworking all...
-
The Happy Valley Utility Company uses turnaround documents in its computerized customer accounting system. Meter readers are provided with preprinted com puter forms, each containing the account...
-
Rearrange the following items in chronological order to show how companies have evolved in incorporating quality concepts into organizational culture a. Emphasis on quality inspections. b. Adoption...
Study smarter with the SolutionInn App