Chapter 9 Review

Chapter 9 Review - Chapter 9 Review Exercises Operating...

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Chapter 9 Review Exercises – Operating Budgets 1) Abrams Bottling Company sells fruit-flavored c colas. Estimated sales in cartons for May, June, and July are 1,000, 3,000, and 5,000 respectively. The price is forecast at $5.00 per carton. Abrams requires that finished goods ending inventory be 20% of the next month’s sales. Finished Goods Inventory was 500 units on May 1. Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water. Materials ending inventory is 10% of the next month’s production needs. May 1 inventory met that requirement. Cost per oz of fruit syrup is $0.10 and cost per oz of carbonated water is $0.25. Budgeted revenue for May is ________________. Production in June is _________________ . Material purchases of syrup in May is ___________________. Direct material cost for carbonated water in May is _____________________. 2) Foster Company makes power tools. The sales budget for drills for the first four months of the year is: Month Unit Sales January
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