Ch08HWE2_P13rqs1thru8

Ch08HWE2_P13rqs1thru8 - CHAPTER 8 BUDGETING FOR PLANNING...

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CHAPTER 8 BUDGETING FOR PLANNING AND CONTROL EXERCISES 8–1 Weber Company Production Budget For the Second Quarter, 20XX April May June Quarter Sales. ............................................ 12,000 50,000 30,000 92,000 Desired ending inventory. ......... 7,500 4,500 4,200 4,200 Total needs. ........................... 19,500 54,500 34,200 96,200 Less: Beginning inventory. ....... 1,800 7,500 4,500 1,800 Units to be produced. ........... 17,700 47,000 29,700 94,400 8–2 1. Sleepeze Company Sales Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Standard Pillow: Units 5,000 6,500 10,000 5,500 27,000 Unit price × $4.00 × $4.00 × $4.00 × $4.00 × $4.00 $ 20,000 $ 26,000 $ 40,000 $ 22,000 $108,000 Neck Roll: Units 4,000 4,500 8,000 5,000 21,500 Unit price × $3.00 × $3.00 × $3.00 × $3.00 × $3.00 $ 12,000 $ 13,500 $ 24,000 $ 15,000 $ 64,500 Total $ 32,000 $ 39,500 $ 64,000 $ 37,000 $172,500 2. Sleepeze Company probably asked the marketing vice president for sales quantity and price estimates. This vice president might have considered the level of the past year’s sales of the two products, the actions of competitors, the state of the economy, and so on. 1
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8–2 Concluded 3. Production budget for standard pillows: Quarter 1 Quarter 2 Quarter 3 Sales 5,000 6,500 10,000 Desired ending inventory 1,300 2,000 1,100 Total needs 6,300 8,500 11,100 Less: Beginning inventory 300 1,300 2,000 Units to produce 6,000 7,200 9,100 Production budget for neck rolls: Quarter 1 Quarter 2 Quarter 3 Sales 4,000 4,500 8,000 Desired ending inventory 450 800 500 Total needs 4,450 5,300 8,500 Less: Beginning inventory
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Ch08HWE2_P13rqs1thru8 - CHAPTER 8 BUDGETING FOR PLANNING...

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