Reference no: EM13125287
Ballina Products manufactures and distributes toys to retail outlets. One of the company's products, RC Helicopter, requires 3 kilograms of material A in the manufacture of each unit. The company is now planning raw material needs for the third quarter of 20x1, the quarter in which peak sales of RC Helicopters occur. In order to keep production and sales moving smoothly, the company has the following inventory
requirements:
1. The finished goods inventory on hand at the end of each month must be equal to 5,000 units plus 25 percent of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,750 units.
2. The raw materials inventory on hand at the end of each month must be equal to one half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,375 kilograms.
3. The company maintains no work in process inventories. A sales budget for RC Helicopter for the last six months of 20x1 is given below:
Budgets sales in units
July 35,000
August 40,000
September 50,000
October 30,000
November 20,000
December 15,000
Required:
1. Prepare a production budget for RC Helicopter for the months July-October.
2. Examine the production budget which you prepared in (1) above. Why will the company produce more units than it sells in July and August, and less units than it sells in September and October?
3. Prepare a budget showing the quantity of material A to be purchased for July, August, and September 20x1 and for the quarter in total.
|
Discuss the u.s. tax consequences
: Discuss the U.S. tax consequences of each of the above items of income. Also, indicate how your answers would change if Harry held a green card.
|
|
Equation of ellipse-interest and lotto probability
: An employee of the National Parks Service told you about a location in Washington, DC. It is a large grassy area south of the White House known as the Ellipse. The National Tree Lighting Ceremony is held annually on the Ellipse.
|
|
Illustrate which is better for borrower
: What is the difference between “simple interest” and “compound interest”? Illustrate which is better for the borrower and which is better for the lender?
|
|
Which test to do better relative to the rest of the class
: He received a score of 70 on a biology test for which the class mean was 70 with standard deviation of 4. On which test did he do better relative to the rest of the class?
|
|
Prepare a production budget for rc helicopter
: The finished goods inventory on hand at the end of each month must be equal to 5,000 units plus 25 percent of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,750 units.
|
|
Change in temperature in the production of silver chloride
: Chemistry: Change in Temperature in the Production of Silver Chloride, When solutions containing silver ions and chloride ions are mixed, silver chloride precipitates:
|
|
Estimating the current stock price
: The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best..
|
|
Explain combustion analysis of toluene
: Combustion Analysis of Toluene, Combustion analysis of toluene, a compound containing carbon and hydrogen only, gives 5.86 mg carbon dioxide and 1.37 mg of water. What is its empirical formula?
|
|
Create a risk-control matrix for top notch t-shirt printing
: Create a Risk/Control Matrix for Top Notch T-Shirt Printing. By using the flowchart drawn in a. identify at least five objectives and five risks. Propose at least five specific internal controls that you should recommend to Barb.
|