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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 .