sales velaithne 80,000 c. 75,000 d. 105,000 2. The production budgots are sed to

Question

sales velaithne 80,000 c. 75,000 d. 105,000 2. The production budgots are sed to propere which of the following bedgst b dinect manerias purchases, darect labor ost, and factory overhead conl d sales in 3. If the expected sales yolame for thse currest beginsing inventory is 1,200 the s period in $,000 units the desired enling invenory is 1,400 wnits, and de s 1,200 units, the nsmber of urats set forth in the p b. 8,200 66,000 d. 6,800 Finch Company bepan its operations on Manch 31 of the current year. Finch has the following peojected costs $195 S217 (1) Of the manufacturing costs, three-Sourths are paid for in the month they are incurred following month onc-fourth is paid im the 2) Insurance expense is $1,000 a sauh bowerver, the insurance is paid four times yearly in the fins moath of the quarter, (ie., January, April, July, and October). (3) Property tax is paid once a year in November 4 The cash payments expected foe Finch Company in the month of May ane a. $185,600 Copyright Cengage Leaming Powered by Cegnero

Explanation / Answer

Solution 1:

Number of units expected to be manufactured in May is

Sales (20,000+40,000+20,000) 80,000

Add: Ending inventory 25,000

Less: Opening inventory 30,000

Units to manufacture 75,000 units

So answer is C.

Solution 2:

Production Budget are used to prepare the direct material , direct labour and factory overhead budget.

So, answer is b.

Solution 3:

Sales 8,000

Add: Ending inventory 1,400

Less: Opening inventory 1,200

Units to produce 8,200 units

So, answer is b.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.