Friden Company has budgeted sales and production over the...

This preview shows page 1 - 4 out of 16 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Marketing 2018
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 5
Marketing 2018
Ferrell/Pride
Expert Verified
1. Friden Company has budgeted sales and production over the next quarter as follows: The company has 20,000 units of product on hand at April 1. A minimum of 20% of the next month's sales needs in units must be on hand at the end of each month. July sales are expected to be 140,000 units. Budgeted sales for June would be (in units): A. 188,000 B. 160,000 C. 128,000 D. 184,000 Units produced in June = Ending inventory + Units sold - Beginning inventory 156,000 = (140,000 × 20%) + X - (X × 20%) where X = June sales in units 156,000 = 28,000 + 0.8 X X = 160,000
2. Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 36,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Marketing 2018
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 5
Marketing 2018
Ferrell/Pride
Expert Verified
EI = 45,000 = .30 X X= 150,000 Since production= Feb needs/2 lbs. Production = 150,000/2 = 75,000 units 3. Yumm Dairy Corporation manufactures carrot-flavored ice cream. Yumm's production budget indicated the following units to be produced for the upcoming months: Four (4) ounces of carrots are needed for each gallon of ice cream. Yumm also likes to have enough carrots on hand to cover 5% of the next month's production needs for carrots. How many ounces of carrots should Yumm plan on purchasing during the month of February?
Porus Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:
All of these expenses (except depreciation) are paid in cash in the month they are incurred.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture