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Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 20X9? 9. Question:( TCO 2) Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels( in units) are planned for the fiscal year of July 1, 2008, through June 30, 2009. July 1, 2008 June 30, 2009 Raw material( note) 40,000 10,000 Work in process 8,000 8,000 Finished goods 30,000 5,000( note) Three units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 600,000 units during the 2008-2009 fiscal year, the number of units it would have to manufacture during the year would be 10. Question:( TCO 2) Information pertaining to Brenton Corporation ' s sales revenue is presented in the following table: February March April Cash Sales $ 160,000 $ 150,000 $ 120,000 Credit Sales 300,000 400,000 280,000 Total Sales $ 460,000 $ 550,000 $ 400,000 Management estimates that 5 % of credit sales are not collectible. Of the credit sales that are collectible, 60 % are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70 % of the next month ' s projected total sales. ll purchases of inventory are on account; 25 % are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton ' s budgeted total cash payments in March for inventory purchases are ========================================= ACCT 434 Week 2 Quiz( New)
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Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 20X9? 9. Question:( TCO 2) Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels( in units) are planned for the fiscal year of July 1, 2008, through June 30, 2009. July 1, 2008 June 30, 2009 Raw material( note) 40,000 10,000 Work in process 8,000 8,000 Finished goods 30,000 5,000( note) Three units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 600,000 units during the 2008-2009 fiscal year, the number of units it would have to manufacture during the year would be 10. Question:( TCO 2) Information pertaining to Brenton Corporation ' s sales revenue is presented in the following table: February March April Cash Sales $ 160,000 $ 150,000 $ 120,000 Credit Sales 300,000 400,000 280,000 Total Sales $ 460,000 $ 550,000 $ 400,000 Management estimates that 5 % of credit sales are not collectible. Of the credit sales that are collectible, 60 % are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70 % of the next month ' s projected total sales. ll purchases of inventory are on account; 25 % are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton ' s budgeted total cash payments in March for inventory purchases are ========================================= ACCT 434 Week 2 Quiz( New)