Question

Aloan Co. provides the following sales forecast for the next three months: January February March 3,200 4,400 5,200 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 December 31 is 640 units. The budgeted production units for January are: Multiple Choice 3,200 units. 4,080 units. 128 units. 3,440 units. 2,960 units.

Answer 1

Answer with working notes is given below

Answer is 3,440 units 3,200 Sales units Add: Closing stock Total requirement Less: Opening stock Budgeted production 880(4,400 * 20%) 4,080 640 3,440 Answer is $14,600 $40,000 $659,000 $699,000 Opening cash balance Cash receipts Total cash available Less: Cash payments For purchases For selling expense For general and admin expens Total Expense Net Cash Minimum balance needed Shortage Borrowing needed $617,500 $28,800 $35,300 $681,600 $17,400 ( Cash available - Cash expenses) $32,000 -$14,600 $14,600 Answer is $774,200 First Quarter 58,000 Second Quarter 49,000 A 2.B Budgeted production Raw material needed per unit 98,000 AXB (98,000*30%) Total Raw material needed Add: Closing stock Total requirement Less: Opening stock Purchase units Unit price Budgeted Purchase value 116,000 29,400 145,400 34,800 110,600 $7 $774,200 (110,600 * $7)