11. The following forecasted sales pertain to Micah Company: Month Sales April $
ID: 2356074 • Letter: 1
Question
11.
The following forecasted sales pertain to Micah Company:
Month
Sales
April
$200,000
May
250,000
June
150,000
July
100,000
Collection pattern:
60% in month of sale
40% in month following the sale
Accounts receivable as of March 31
$35,000
Finished goods inventory as of March 31
4,000 units
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?
A)19,000 units
B)20,000 units
C)25,000 units
D)21,000 units
6.
Yummy Jams Company produces a line of jams. Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:
October
75,000
November
98,000
December
63,000
Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3 percent of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40 percent of a month's purchases in that month, and the remaining 60 percent the following month.What is the dollar cost of purchases for October?
A)$23,300
B)$22,707
C)$23,300
D)$19,925
E)$18,450
13.
Which of the following is not an advantage of participative budgeting?
A)It fosters a sense of managerial responsibility.
B)It encourages the introduction of budgetary slack.
C)It encourages a higher level of performance.
D)It fosters a sense of creativity in managers.
E)It encourages greater goal congruence.
Hope you can show the steps so i can learn from it. Thank you for helping!
Month
Sales
April
$200,000
May
250,000
June
150,000
July
100,000
Explanation / Answer
5) D)21,000 units Working : sale price = $10 and April sales = $200,000 hence sold units = 20,000 units Sold goods = Opening+Produced - Closing 20,000 = 4000 + X - (250000/10)0.2 = X - 1000 X= 21000 units 6) B)$22,707 Working = Produced jars(oct) = 75000 units. hence berries used = 75000 x 0.5 = 37500 pounds Raw material used = Opening + Purchases - Closing 37500 = 1125 + X - 0.03(98000 x 0.5) = X-345 X= 37,845 pounds Dollar cost of Purchases = 37845 x $0.60 = 22,707 13) B)It encourages the introduction of budgetary slack This is a disadvantage and not an advantage.
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