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Juli2301 [7.4K]
3 years ago
15

The sales budget for Modesto Corp. shows that 12,000 units of Product A and 14,000 units of Product B are going to be sold for p

rices of $11 and $13, respectively. The desired ending inventory of Product A is 25% higher than its beginning inventory of 3,300 units. The beginning inventory of Product B is 3,800 units. The desired ending inventory of B is 4,300 units. Total budgeted sales of both products for the year would be: _________.
Business
1 answer:
Mamont248 [21]3 years ago
4 0

Answer:

Total product A Sales = $132000

Total Product B Sales = $182000

Total Sales of Both Products = $314000

Explanation:

The Product A sales calculated using the formula = Budgeted Units Sold x Sales price Per Unit of Product A

Total Product A Sales = 12000 x $11 = $132000

The Product B sales calculated using the formula = Budgeted Units Sold x Sales price Per Unit of Product B

Total Product A Sales = 14000 x $13 = $182000

Total sales of Both product = Total Product A Sales + Total Product B Sales

Total Sales of Both Product = $132000 + $182000 = $314000

The budgeted sales for the Modesto Corp. is $314000

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Answer:

$418,550

Explanation:

Steps are shown below:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{52,000}\times \text{\$50}}{\text{\$1.25}}}

= 2,040 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $52,000 ÷ 2,040 units

=  25.49 orders

c. The average inventory would equal to

= Economic order quantity ÷ 2

= 2040 units ÷ 2

= 1,020 units

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Ordering cost = Number of orders × ordering cost per order

= 25.49 orders × $50

= $1,275

Carrying cost = average inventory × carrying cost per unit

= 1,020 units × $1.25

= $1,275

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Purchase cost = Annual demand × cost per unit

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Jefferson Co. uses the following standard to produce a single unit of its product: Variable overhead $6 (2 hrs. per unit @ $3/hr
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Answer:

B. 6,000U

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Standard rate per hour=$3

Standard hours per unit=2

Actual units produced=24,000

Actual variable production overhead cost of actual production=$150,000

Variable overhead variance=(24,000*2*3-150,000)

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