Question

Dolce Co. estimates its salos at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the eredit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at

Answer 1

1)Answer: Dolco co. correct option is 220,500 Explanation: given data sales 180,000 units sales increase 18,000 units each quarter ending inventory 25% solution we know here that Quarter 2 Sales is Quarter 2 180000 18000 198000 units and Quarter 3 Sales will be Quarter 3 Sales 198000 + 18000 216000 units so that Production for Quarter 3 will be here as Production for Quarter 3 Sales + Closing Inventory Opening Inventory put here value Production for Quarter 3 = 216000 + 25% of 216000 - 25 % of 198000 Production for Quarter 3 216,000 54,000- 49,500 Production for Quarter 3 = $220500 so correct option is 220,500 Ans 24) Total cost / Estimated cost 500,000/ 5000 100$ AOITAAUMM0RAJAS Profit margin = 40$ Total = 140$ Otengo Ans 25) part $180 Material loading charge 40% $180 / 40% 72$ So correct option is 72$ Uses