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The sales department C. Coles Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Finished Goods inventory, March 1...........................3,000 units Finished Goods inventory required March 31................1,000 units Materials in production:
Inventory Required inventory
March 1 March 31 Standard Cost
A (one gallon per unit) 500 gal 1,000 gal $2 per gal
B (one pound per unit) 1,000 gal 1,000 lbs $1 per lb
Prepare the following:
a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
On November 1, 2013, Norwood borrows $ 200,000 cash from a bank by signing a five year installment note bearing 8% interest. The note requires equal total payments each year on October 31.
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Describe how selling to customers on credit affects the operating cycle.
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victory company uses weighted-average process costing to account for its production costs. direct labor is added evenly
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