Question
Sales last year for a department were $124,560. This year planned sales are forecast to increase by 4.2 percent. What are planned sales for this
Sales last year for a department were $124,560.
This year planned sales are forecast to increase by 4.2 percent.
What are planned sales for this year?
2.
Sales last year for a department were $98,000.
This year planned sales are forecast to decrease by 1.5 percent.
What are planned sales for this year?
3.
A department has the following sales data available.
Forecast sales for May.
Month Sales Last Year Sales This Year
February $24,000 $26,000
March $26,000 $27,000
April $29,000 $29,000
May $33,000 ?
4.
Calculate the sales to stock ratio for each of the three months:
Month Monthly Sales Retail Stock Sales to Stock Ratio
January $10,560 $19,655 ?
February $12,500 $17,850 ?
March $15,500 $22,800 ?
5.
Calculate the planned BOM Inventory for each of the three months.
The stock to sales ratio for January is 2.0 and 2.3 for February and March.
Month Planned Sales BOM Inventory
January $11,600 ?
February $12,500 ?
March $26,000 ?
6.
Calculate the average inventory for the three- month season.
Month Ending Stock Level
January $10,500
February $11,600
March $9,900
Total Inventory: ?
Average Inventory: ?
7.
Planned sales for the three-month season in problem #6 are $10,000.
Calculate the stock turnover:
8.
Use the following information to answer the questions below.
Month Last Year Month Sales BOM Stock
January $10,000 $20,000
February $12,000 $25,000
March $14,000 $30,000
April $18,000 $38,000
May $19,000 $40,000
June $18,000 $39,000
July $19,000 $41,000
August $21,000 $43,000
September $23,000 $47,000
October $26,000 $52,000
November $31,000 $60,000
December $30,000 $58,000
Ending Inventory December 31 $28,000
For thetime periodpresented, what were total sales?
What was the average inventory for the period?
What was the annual stock turnover rate?
Calculate last year's stock-to-sales ratio for each of the months given.
Next December, the buyer wants to maintain the current stock-to-sales ratio but reduce the BOM stock to $55,000. What sales must occur next year for this to occur?
Thank You
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
