This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: GNB 12e Practice Exam – Chapter 9 1. Frame-It Company produces and sells picture frames. To guard against out of stock situations, the company requires that 20% of the next month's sales be on hand at the end of each month. Budgeted sales of picture frames over the next three months are: January February March Budgeted sales in units 320,000 480,000 400,000 What would budgeted production for February be? Sales 480,000 Plus planned ending inventory (400,000 x .20) 80,000 Less beginning inventory (480,000 x .20) (96,000) Units to be produced 464,000 2. Santypal Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in units 80,000 96,000 128,000 112,000 Ten pounds of raw materials are required for each unit produced. Raw materials on hand at the beginning of the year total 20,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. What would budgeted purchases of raw materials in the second quarter be?next quarter's production needs....
View Full Document
- Fall '08
- Sales, Frame-It Company