Question
1. Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900
1. Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
2. Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
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EB6. LO 7.2 Given the following information from Power Enterprises' direct materials budget, how much direct materials needs to be purchased? $101,200 Beginning materials inventory Ending materials inventory Materials needed for production 105,300 890,250 EB10. LO 7.3 My Aunt's Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March? Feb. 2018 Mar. 2018 Apr. 2018 $20,000 $60,000 $70,000Step by Step Solution
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