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Question 11
A company budgeted unit sales of 204,000 units for January, 2013 and
240,000 units for February 2013. The company has a policy of having an
inventory of units on hand at the end of each month equal to 30% of next
month's budgeted unit sales. If there were 61,200 units of inventory on
hand on December 31, 2012, how many units should be produced in
January, 2013 in order for the company to meet its goals?
Question 12
The following information is taken from the production budget for the
first quarter:
Beginning inventory in units
Sales budgeted for the quarter
Production capacity in units
1,200
456,000
472,000
How many finished goods units should be produced during the quarter if
the company desires 3,200 units available to start the next quarter?
Question 13
A company determined that the budgeted cost of producing a product is
$30 per unit. On June 1, there were 80,000 units on hand, the sales
department budgeted sales of 300,000 units in June, and the company