{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# Cost 6 - The Waverly Company has budgeted sales for the...

This preview shows pages 1–3. Sign up to view the full content.

The Waverly Company has budgeted sales for the year as follows: Quarter 1 = 12,000 units Quarter 2 = 14,000 units Quarter 3 = 18,000 units Quarter 4 = 16,000 units The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the third quarter is (in units) is: Answer Selected Answer: 17,500 units. Correct Answer: 17,500 units. Response Feedback: 18,000 + (16,000 .25) - (18,000 .25) = 17,500 units Question 2 2 out of 2 points The Waverly Company has budgeted sales for the year as follows: Quarter 1 = 12,000 units Quarter 2 = 14,000 units Quarter 3 = 18,000 units Quarter 4 = 16,000 units The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter is (in units) is:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Answer Selected Answer: 15,000 units. Correct Answer: 15,000 units. Response Feedback: Question 3 2 out of 2 points The Sun Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this item in 2008. The beginning finished goods inventory contains 20,000 units. The target for each year's ending inventory is 10,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 11

Cost 6 - The Waverly Company has budgeted sales for the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online