Business, 04.04.2020 14:19 fluffyskunk302

A firm has the following forecast information for sales of Product X: April 15,000 units May 17,000 units June 19,000 units July 18,000 units Product X sells for $3 per unit. Half of the firm's sales are for cash and the other half is on account. Credit sales are collected in the following pattern: 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale (the remainder are uncollectible). If the firm targets its ending inventories to be 25% of the following month's sales, what are the budgeted purchases (in units) for June

Answers: 1

Show answers

Answers

Answer from: pwolfiimp4

18,750 units

Explanation:

A firm has the following forecast information for sales of Product X:

April 15,000 units

May 17,000 units

June 19,000 units

July 18,000 units Product X sells for $3 per unit.

Half of the firm's sales are for cash and the other half is on account.

Credit sales are collected in the following pattern: 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale (the remainder are uncollectible).

If the firm targets its ending inventories to be 25% of the following month's sales, what are the budgeted purchases (in units) for June .

Purchases Budget = Required production for sales - opening inventory of raw materials + closing inventory of raw materials = Raw materials required

June's Production Budget

Required production for sales = 19,000 units

less: Beginning inventory (25% of June's sales) = 4,750 units

Add: Required Ending Inventory (25% of July's sales) = ...4,500 units

Raw materials required for purchase in June = 18,750 units

Answer from: bettybales1986

18,750 units

Explanation:

the firm estimates in monthly ending inventories at 25% of next month's sales:

ending inventory May = 19,000 x 25% = 4,750 units

units sold during June = 19,000 units

ending inventory June = 18,000 x 25% = 4,500 units

total purchases for June = 19,000 + 4,500 - 4,750 = 18,750 units

Sales forecast:

month units sold price p/ unit total sales cash credit

April 15,000 $3 $45,000 $22,500 $13,500

May 17,000 $3 $51,000 $25,500 $22,050

June 19,000 $3 $57,000 $28,500 $25,875

July 18,000 $3 $54,000 $27,000 $26,025

Answer from: Quest

answer; common market;

Answer from: Quest

i guess you could put raise the economic balance

Another question on Business

Business, 21.06.2019 21:00

Intronix uses copy editors, computer graphics specialists, and java programmers to produce ads for magazines and the internet. the average new ad for magazines typically requires 180 hours of a copy editor's time and 135 hours of a computer graphics specialist's time, whereas ads produced for the internet require 35 hours of copy editor time, 195 hours of computer graphics time, and 60 hours of a java programmer's time. lassie food, a dog food manufacturer, has hired intronix to produce ads in the next four week. although currently it considers magazine ads 3 times more valuable than internet ads, it still wishes to have at least 2 of each produced within the next four weeks. intronix has assigned up to 3 copy editors, 4 computer graphics specialists, and 1 java programmer, each committed to work up to 70 hours per week on the project. how many of each type of ad should be produced to maximize the overall value to lassie foods

Answers: 3

Answer

Business, 22.06.2019 05:10

Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp

Answers: 2

Answer

Business, 22.06.2019 06:30

Select all that apply. select the ways that labor unions can increase wages. collective bargaining reducing the labor supply increasing the demand for labor creating monopolies

Answers: 1

Answer

Business, 22.06.2019 10:20

Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.

Answers: 1

Answer

You know the right answer?

A firm has the following forecast information for sales of Product X: April 15,000 units May 17,000...

Questions