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ACCT 434 Week 3 Cost Behavior Decision Making Quality For more course tutorials visit www. uophelp. com
inventory levels( in units) are planned for the fiscal year of July 1,
20x2, through June 30, 20x3.
July 1, 20x2
June 30, 20x3
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 20x2-20x3
fiscal year, the number of units it would have to manufacture during
the year would be
Question 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. 11 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 3 Cost Behavior Decision Making Quality For more course tutorials visit www. uophelp. com

1.