Question
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 105,000 July $ 50,000 February 98,000 August 50,000 March 30,000 September 60,000
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 105,000 July $ 50,000 February 98,000 August 50,000 March 30,000 September 60,000 April 30,000 October 90,000 May 25,000 November 110,000 June 40,000 December 128,000 Total annual sales = $816,000
Bombs Away Video Games Corporation has forecasted the following monthly sales:
January | $ | 105,000 | July | $ | 50,000 |
February | 98,000 | August | 50,000 | ||
March | 30,000 | September | 60,000 | ||
April | 30,000 | October | 90,000 | ||
May | 25,000 | November | 110,000 | ||
June | 40,000 | December | 128,000 | ||
Total annual sales = $816,000 | |||||
Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12. Of each month's sales, 20 percent are for cash and 80 percent are on account. All accounts receivable are collected in the month after the sale is made.
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a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 30,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Sales Ending Inventory Inventory 30,000 January February March April May June July August September October November December
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