ACCT 556 help A Guide to career/uophelp.com ACCT 556 help A Guide to career/uophelp.com | Page 16

expected to result in the trend of the last three year to continue for the
Stupendous brand even with a small price increase per gallon.
Super Paint has been produced since the company began production.
The sales level of this product has been rather stagnant for the last 5
years, and that trend is expected to continue in the future.
You have made the following conclusions about the two different
products:
Super Paint
•
Sales growth in units will continue to be stagnant.
•
The more recent years are more representative of continuing unit
sales than years in the further past.
•
Exponential Smoothing will be an appropriate unit sales
projection method to use.
Stupendous Paint
•
Unit sales growth will continue on its current increasing trend
•
An exponential growth function with the year being the
independent variable and the sales volume being the dependent variable
will be an appropriate sales projection method.
2006 DIRECT MATERIAL AND INVENTORY BUDGET
INFORMATION
The production department worked in conjunction with both the sales
and purchasing departments in developing desired projected inventory
levels for December 31, 2006. Information regarding beginning and
desired ending inventories for 2006 are as follows:
Hint: Remember that each gallon of paint requires two pounds of
pigment.
2006 DIRECT LABOR BUDGET INFORMATION