ZuoTi.Pro
Question

The management of Union Pacific expect the following sales in third quarter Sales units July August September 7,000 7,700 5,8
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As per the given question,

> Sales for July= 7000 units

August= 7700 Unit

     September= 5800 Units

> Closing Finished Goods Inventory for July* = 1540 Units ( 20% of 7700 units)

    August=1160 Units (20% of 5800 units)

> Opening Finished Goods Inventory for July* = 1400 Units( closing finished goods inventory for June)

  August= 1540 Units (Closing finished goods inventory for July)

September= 1160 Units (Closing finished goods inventory for August)

Budgeted Production = Sales + Closing Finished goods inventory - Opening Finished goods inventory

Budgeted Production For August = Sales+ Closing finished goods inventory - Opening finished goods inventory

= 7700 Units + 1160 Units -1540 Units

= 7320 Units (Answer D)

*Conclusion- As per the question month's closing finished goods inventory balance should be 20% of the sales of next month which means closing balance for August is 20% of the sales of September (20/100*5800 units) and the closing balance for the current month is considered as the opening balance of the next month.

So closing balance for June was given which we considered as the opening balance for July and closing balance for July was considered as opening balance for August.

0 0
Add a comment
Know the answer?
Add Answer to:
The management of Union Pacific expect the following sales in third quarter Sales units July August...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Bengal Co. provides the following sales forecast for the next three months: Sales units July August...

    Bengal Co. provides the following sales forecast for the next three months: Sales units July August September 7,500 8,200 6,600 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,875 units. The budgeted production units for August are: Multiple Choice 6,375 units 9,850 units. 6,550 units 10.075 units

  • Milo Company manufactures beach umbrelas. The company is preparing detailed budgets for the third quarter and...

    Milo Company manufactures beach umbrelas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units) The selling price of the beach umbrellas is $13 per unit uly 35,000 October 25,000 11.500 12.000 August September 80.000 49,000 November December b. All sales are on account. Based on past experience, sales are collected...

  • Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000...

    Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Pacific's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Monthly costs are budgeted as follows: Fixed manufacturing costs $ 17,000 Fixed selling costs $ 10,000 Fixed administrative costs $ 8,300 Variable manufacturing costs $ 5 per unit produced Variable selling costs $...

  • Bengal Co. provides the following sales forecast for the next three months: July August September Sales...

    Bengal Co. provides the following sales forecast for the next three months: July August September Sales units 12,000 12,700 6,300 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 3,000 units. The budgeted production units for August are: Multiple Choice 15,700 units. 11,125 units. 14,275 units. 11,100 units. 10,950 units.

  • Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October....

    Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter...

  • Bengal Co. provides the following sales forecast for the next three months: July 5,000 August 5,700...

    Bengal Co. provides the following sales forecast for the next three months: July 5,000 August 5,700 September 5,650 Sales units The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for August are: Select one: A. 5,665 units. O B. 4,310 units. C. 5,690 units. O D. 6,950 units. E. 4,135 units.

  • Bengal Co. provides the following unit sales forecast for the next three months: July August September...

    Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are: Multiple Choice 2,500 units. 3,750 units. 6,425 units. 5,175 units. 6,250 units.

  • 1.) Morse company has a sales budge of 75,000 units in July, 85,000 units in August...

    1.) Morse company has a sales budge of 75,000 units in July, 85,000 units in August and 70,000 units in September. Morse requires ending finished goods inventories equal to 40 percent of the following months sales. How many units should be budgeted for production in August? Assume that the beginning finished goods inventory in August was equal to the budgeted level. 2.)David Enterprise manufactures a product that requires three gallons of chemical XU-20 per unit. The cost of XU-20 is...

  • Milo Company manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter...

    Milo Company manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August September 31,000 October 71,000 November 51,000 December 21,000 11,000 11,000 The selling price of the beach umbrellas is $10 per unit. Sales in June were 26,000 units. b. All sales are on account....

  • Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September...

    Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September Sales in units 41,500 53,500 ? Production in units 42,550 53,800 58,150 The company has 4,300 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 73,000 units. Budgeted sales for September would be (in units):

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT