Production needs in inventory for component a, Cost Accounting

Assignment Help:

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows;
SR200 TX500
May 8,000 20,000
June 13,000 32,000
July 11,000 39,000
August 18,000 46,000

Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next months sales in ending Inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.

TX500 requires 6 units of component A. (SR200 does not use component A.)There were 30,000 units of Component A in inventory on May 1. Kenner wants to have a 20% of the following month's production needs in inventory for component A.

1. How many units of TX500 are budgeted for production in June?
A. 32,000
B. 34,800
C. 47,600
D. 12,800
E. 45,000
Show work

 


2.What is the budgeted production of SR200 for May in units?
A. 1200
B. 8000
C. 10500
D. 8750
E. 9950
show work

 


Related Discussions:- Production needs in inventory for component a

Analysis of stockholders'' equity , Analysis of stockholders equity: S...

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

Credit sales method, What are the journal entries to recognize each of the ...

What are the journal entries to recognize each of the below events. a.   The firm records bad debt expense of 5% of credit sales, which were $300.  The firm uses the Percentage

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Change in useful life for deperciation, A machine originally had an estimat...

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At tha

Costs and revenue, Costs and Revenue Cost of the development work ...

Costs and Revenue Cost of the development work done in-house to 1 January 2009 has been £1.5m with a further cost of £50,000 per month from now until the software is ready

Capital project, is sale of salvage from capital project recorded as gain/l...

is sale of salvage from capital project recorded as gain/loss or applied back to project costs

Assignment, with relevant illustrations and examples, discuss the different...

with relevant illustrations and examples, discuss the different overhead costing and control method.

Subsidiary ledgers and control accounts, Example B & B Mechanical Repai...

Example B & B Mechanical Repairs is a small, family owned partnership that specialises in the servicing and repair of motor vehicles. The business employs three qualified mecha

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Cash Budgeting, Stopover industries ltd, a recently incorporated company pl...

Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it pro

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd