Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. A business has forecasted June sales of 400 units and July sales of 700 units. The business maintains ending inventory equal to 125% of

image text in transcribed
image text in transcribed
3. A business has forecasted June sales of 400 units and July sales of 700 units. The business maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. Determine required production units for June (be sure to show and label your work). 4. A business has beginning inventory of 450 units at a cost of $10 each. Production during the period was 500 units at $12 each. Sales were 700 units. Determine cost of goods sold for the period under FIFO (be sure to show and label your work). 5. A business had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volume this year because a 10 percent price increase is needed to pass rising costs through to customers. Returned merchandise will represent 3.2 percent of total sales. Determine net sales UNITS AND DOLLARS projected for this year (be sure to show and label your work). 6. A business forecasted inventory purchases of $5,000 in October, $4,000 in November, and $4,000 in December. All purchases are on credit. 40% is paid in the month of the purchase, and the remainder is paid in the following month. Determine cash is paid in November (be sure to show and label your work). 11. If average daily remittances are $6 million, and "extended disbursement float" adds two days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 7% on excess funds (be sure to show and label your work)? 4 12. A business expects total sales of $60,000. The price per unit is $10. The firm estimates an ordering cost of $25 per order, with an inventory cost of $0.70 per unit. What is the optimum order size (be sure to show and label your work)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fixed Income Markets And Their Derivatives

Authors: Suresh Sundaresan

3rd Edition

0123850517, 978-0123704719

More Books

Students also viewed these Finance questions

Question

b. Explain how you initially felt about the communication.

Answered: 1 week ago