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Marta_Voda [28]
3 years ago
11

Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first qu

arter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted) Cost of goods sold $ 39,000 $ 69,000 $ 89,000 $ 59,000 Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be: Multiple Choice
a. $81,500.
b. $66,500.
c. $89,000.
d. $111,000.
Business
1 answer:
rosijanka [135]3 years ago
4 0

Answer:

Option (a) is correct.

Explanation:

For February,

Opening inventory would have been:

= 25% of February

= (25% × $89,000)

= $22,250

Ending inventory would have been:

= 25% of March

= (25% × $59,000)

= $14,750

Hence,

Cost of goods sold = Opening inventory + Purchases - Ending inventory

$89,000 = $22,250 + Purchases - $14,750

Purchases = $89,000 + $14,750 - $22,250

                  = $81,500

Therefore, the budgeted purchases of inventory in February Year 2 would be $81,500.

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Northern Illinois Company expects to sell 36,000 units of finished goods over the next 6-month period. The company has 12,000 fi
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Answer:

38,000 units

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Products to be manufactured = Total production required - Beginning finished goods inventory = 50,000 - 12,000 = 38,000 units

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So the correct answer will be 38,000

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The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The
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Answer:

$1,650,000

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5 0
2 years ago
Take a quick look at all the market segments by clicking on the SEGMENTS/SUMMARY tab. As you analyze the opportunity for each se
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Question Completion:

Demographic Data on Market Segments

Segment                         Market   Growth   Purchase   Average

                                          Size        Rate     Behavior      Price  

Urban Commuters       20,000         3%          23%        $45.00

School Children            35,000         1%          20%        $24.00

Outdoor Enthusiasts     14,000         5%          12%        $90.00

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Answer:

From looking at the information provided about each segment, the segment which represents the greatest portion of the entire market at close to 36% is:

School Children.

Explanation:

a) Data and Calculations:

Demographic Data on Market Segments

Segment                         Market   Growth   Purchase   Average   Market

                                          Size        Rate     Behavior      Price       Size %

Urban Commuters       20,000         3%          23%        $45.00     20.4%

School Children            35,000         1%          20%        $24.00     35.7%

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University Students      24,000        5%           15%       $32.00      24.5%

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b) Market Size in percentage is computed as a ratio of each market segment to the total market size.  Companies engage in market segmentation and sizing by dividing a target market into smaller, more defined categories that share similar characteristics such as demographics, interests, needs, or locations.  The purpose is to identify the different groups within the target market so that more tailored and valuable goods and services can be provided to meet the customers' sweet spots.

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