ACTG 1P12 Final: Chapter 6 Inventory Costing Examples.xlsx
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Fantastic Futons manufactures futons. The estimated number offuton sales for the first three months of 2014 are as follows:
January | 40,000 |
February | 50,000 |
March | 60,000 |
Finished goods inventory at the end of 2013 was 10,000 units. Onaverage, 25 percent of the futons to be sold in the next month areproduced and kept as ending balance in finished goods inventory.The planned selling price is $150 per unit.
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What would be the sales budget for March ofFantastic Futons?
a. | $7,200,000 |
b. | $8,000,000 |
c. | $6,750,000 |
d. | $9,000,000 |
How many futons should be produced in January byFantastic Futons to fulfill the sales projections and maintaininventory?
a. | 44,500 |
b. | 28,000 |
c. | 42,500 |
d. | 52,500 |
How many futons should be produced in February byFantastic Futons to fulfill the sales projections and maintaininventory?
a. | 37,500 |
b. | 65,000 |
c. | 52,500 |
d. | 55,000 |
Fantastic Futons buys direct materials for the futons in clothrolls priced at $80 each. Each roll provides direct material for 40futons. There was one roll in the direct materials inventory at thebeginning of January, and the company expects to have four rolls ininventory at the end of the month. Assuming the production budgetcalls for 60,000 units to be produced in January,what would be the amount of the cloth rolls direct materialspurchases budget for that month?
a. | $119,760 |
b. | $114,000 |
c. | $120,000 |
d. | $120,240 |