SHOW WORK. A sporting goods manufacturer budgets production of 45,000 pairs of s

Question

SHOW WORK. A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 18,000 kg and the cost per kg is $8. What is the budgeted materials need in kg. in the first quarter?

A) 90,000 kg.

B) 84,000 kg.

C) 108,000 kg.

D) 102,000 kg.

E) 120,000 kg.

SHOW WORK. Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of electric stapler sales budgeted for February should be:

A) 10,000

B) 11,249

C) 10,400

D) 10,816

E) 11,000

Explanation / Answer

1. Computation of budgeted material need for the first quarter -

so the option B seems correct.

2. Electric staplers sales budgeted for february should be = 10000*1.04*1.04

= 10816

so the option (d) seems correct.

Please comment in case of any clarification required/wrong answer.

Particulars Qty.(in kgs.) A begnning inventory (Given) 18000 B required for production (45000*2) 90000 C closing (30000*2*20%) 12000 Raw material needs(B+C-A) 84000

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