HomeworkLib
Question

The budget committee for amazon company, with the help of the district sales manager, projects sales...

The budget committee for amazon company, with the help of the district sales manager, projects sales of 80,000 units of its primary product next year. The budget committee and key executives have decided that finished goods inventory should be decreased from 10,000 u its expected at the end of the current year, to 7,000 units at the end of next year. Each unit of finished product requires 3 u its of material MPS15 and 6 units of material NAV23. At the end of the current year, the inventory of material MPS15 is expected to be 10,000 units and material NAV23 is expected to be 20,000 units. The budget committee believes that these material inventories can be reduced by 80% during the coming year because of the newly installed supply chain system.

1. Calculate the number of units amazon expects to produce during the next year.

2. Compare the number of units that should be purchased of each of the raw materials in order to produce the budgeted units and co ply with the inventory policy.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1


0 0
Add a comment
Know the answer?
Add Answer to:
The budget committee for amazon company, with the help of the district sales manager, projects sales...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Smithfield Company manufactures widgets. Smithfield’s sales budget shows monthly sales for the upcoming quarter as follows:...

    Smithfield Company manufactures widgets. Smithfield’s sales budget shows monthly sales for the upcoming quarter as follows:                                                 July                              10,000 units                                                 August                        8,000 units                                                 September                   12,000 units                                                 October                       14,000 units Each unit sells for $20.00. 80% of sales are on account. Smithfield’s collections on sales on account are expected as follows:                                                 65% in the month of the sale                                                 20% in the month following the month of sale                                                 12% in the second month following the month...

  • MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for...

    MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month Units Dollars January 12,000 $ 72,000 February 9,500 57,000 March 14,000 84,000 April 21,700 130,200 May 20,000 120,000 June 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale....

  • MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for...

    MASTER BUDGET A company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month Units Dollars January 12,000 $ 72,000 February 9,500 57,000 March 14,000 84,000 April 21,700 130,200 May 20,000 120,000 June 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale....

  • MASTER BUDGET This Company started business on January 1, 2019. The company estimated that sales for...

    MASTER BUDGET This Company started business on January 1, 2019. The company estimated that sales for the first six months would be as follows: Month January February March April Dollars Units 12,000 S 72,000 9,500 14,000 21,700 130,200 57,000 84,000 May June 20,000 120,000 32,100 192,600 The company sells all items on account and expects collections of accounts receivable to be as follows: 80% in the month of the sale, and the remaining 20% in the month after the sale....

  • Jupiter Company's budget for the coming year estimates monthly sales in units for the first five...

    Jupiter Company's budget for the coming year estimates monthly sales in units for the first five months of the year as follows: April, 35,000; May, 38,000; June 40,000; July, 39,000; and August, 38,000. The ending inventory of finished units available for sale is to be maintained at 25% of the next month's estimated sales. On April 1, there were 12,000 units on hand. There is no work in process at the end of any month. Each unit of finished product...

  • Lighting Inc.'s sales budget showed the following projections, by quarter, for the coming year: Units Quarter...

    Lighting Inc.'s sales budget showed the following projections, by quarter, for the coming year: Units Quarter First Second Third 100,000 120,000 140,000 160,000 520,000 Fourth Total Inventory on December 31 of the current year (that is, at the beginning of the coming year) is expected to be 10,000 units. The quantity of finished goods inventory at the end of each quarter was to equal ten percent of the next quarter's budgeted units to be sold. Required: Calculate the units to...

  • Show Attempt History Current Attempt in Progress On January 1, 2017, the Blue Company budget committee...

    Show Attempt History Current Attempt in Progress On January 1, 2017, the Blue Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017. Sales units: First quarter 5,700; second quarter 6,200; third quarter 7,200 Ending raw materials inventory: 40% of the next quarter's production requirements Ending finished goods inventory: 25% of the next quarter's expected sales units Third-quarter production: 7,670 units. The ending raw materials and finished goods inventories at December 31,...

  • Fuqua Company’s sales budget projects unit sales of part 198Z of 10,800 units in January, 12,700 units in February, and...

    Fuqua Company’s sales budget projects unit sales of part 198Z of 10,800 units in January, 12,700 units in February, and 13,200 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016....

  • On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data...

    On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 5,600; second quarter 6,300; third quarter 7,000. Ending raw materials inventory: Ending finished goods inventory: 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. Third-quarter production: 7,820 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to...

  • Iuuestion Help The McKnight Company has prepared a sales budget of 48,000 finished units for a...

    Iuuestion Help The McKnight Company has prepared a sales budget of 48,000 finished units for a 3 month period. The company has an inventory of 13.000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18.000 is at the end of the succeeding quarter kes galions of direct materials to make one unto finished product. The company has inventory of 65.000 palons of direct materials at December 31 and has a target...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT