21. Coleman, Inc. anticipates sales of 52,000 units, 50,000 units, and 53,000 un
ID: 2514035 • Letter: 2
Question
21. Coleman, Inc. anticipates sales of 52,000 units, 50,000 units, and 53,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in July?
Multiple Choice
53,000.
51,000.
50,000.
52,000.
Some other amount.
Pe 5 932 Gourmet Restaurants has the following flexible-budget formula: Y- $13 PH $550,000 where PH is defined as process hours. What is Gourmet's budgeted total cost if Its process hours equal 23,000? &02:20.21 Multiple Choice $299,000 $550.000 $849.000 $1,399,000 Answer cannot be determined from the information provided.Explanation / Answer
Variable overhead= $89,000
Fixed overhead = $ 125,000
Answer for question no -21 is 53,000 units.
Working notes:
July month sales is 52,000 units
July month closing stock is 50% of August month sales = 50,000*50/100 = 25,000 units
July month opening stock is 50% of July month only. Because June month closing stock is 50% of July month sales. So July month sales became opening stock of July month. i.e., 26,000 units (52,000*50/100)
Production =Sales + Closing stock – opening stock = 52,000 + 25,000 - 26,000= 53,000 units
Answer for question no -35 is $ 849,000
Working notes:
Given:
Y=$13 PH + $550,000
PH (Process Hour) equal to 23,000
13*23,000 +$550,000
299,000+550,000 = 849,000
Answer for question no -37 is $ 291,875
A flexible budget for 16,000 hours:
Variable overhead = $89,000
Fixed overhead = $ 125,000
A flexible budget for 30,000 hours:
Variable overhead= $89,000/16,000 *30,000 = $ 166,875
Fixed overhead = $ 125,000
Total overhead cost for 30,000 hours = $ 291,875
Answer for question no -21 is 53,000 units.
Working notes:
July month sales is 52,000 units
July month closing stock is 50% of August month sales = 50,000*50/100 = 25,000 units
July month opening stock is 50% of July month only. Because June month closing stock is 50% of July month sales. So July month sales became opening stock of July month. i.e., 26,000 units (52,000*50/100)
Production =Sales + Closing stock – opening stock = 52,000 + 25,000 - 26,000= 53,000 units
Answer for question no -35 is $ 849,000
Working notes:
Given:
Y=$13 PH + $550,000
PH (Process Hour) equal to 23,000
13*23,000 +$550,000
299,000+550,000 = 849,000
Answer for question no -37 is $ 291,875
A flexible budget for 16,000 hours:
Variable overhead = $89,000
Fixed overhead = $ 125,000
A flexible budget for 30,000 hours:
Variable overhead= $89,000/16,000 *30,000 = $ 166,875
Fixed overhead = $ 125,000
Total overhead cost for 30,000 hours = $ 291,875
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