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Anvisha [2.4K]
3 years ago
14

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 20% of the next month's sales.

It estimates that May's ending inventory will consist of 59,000 units. June and July sales are estimated to be 295,000 and 305,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.
Business
2 answers:
nikdorinn [45]3 years ago
4 0

Answer:

297,000 units

Explanation:

Key to note is that the JIT policy allows that ending inventory must equal 20% of the next month's sales. This is an important consideration in determining the amount to be produced in the month as the relationship between all these may be stated as

Opening balance + production - units sold = closing balance

Ending balance for June = 20% * 305,000

= 61,000 units

59,000 + production - 295,000 = 61,000

Production = 61,000 + 295,000 - 59,000

= 297,000 units

Colt1911 [192]3 years ago
3 0

Answer:

The number of units that would appear in June's production budget are 297000 units.

Explanation:

The production in June will contain 80% units that relates to June's budgeted sales and 20% units that relate to July's budgeted sales. Thus, the number of units that are to be produced in June are:

June's Production = 0.8 * 295000 + 0.2 * 305000 = 297000 units

Thus, in June, 297000 units will be produced.

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Pension data for Goldman Company included the following for the current calendar year: Service cost $ 100,000 PBO, January 1 750
kirill [66]

Answer:

$88,000

Explanation:

The computation of the pension expense for the year is shown below:

Service Cost  $100,000

Add: Interest Cost  $60,000 ($750,000 × 8%)

Add: Amortization of prior service cost  $6,000

Add: Amortization of net loss $2,000

Less Expected return on plan assets  $80,000 ($800,000 × 10%)

Pension Expense $88,000

We simply deduct the expected return on plant assets and the other values would be added to the service cost so that the pension expense could come

8 0
3 years ago
Barney Company makes and sells stuffed animals. One product, Michael Bears, sells for $28 per bear. Michael Bears have fixed cos
Karo-lina-s [1.5K]

Answer:

6,250 units

Explanation:

The computation of the number of units that should be sold and produced in order to break even is shown below:

as we know that

Break even point = Fixed cost ÷Contribution margin per unit

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Contribution margin per unit = Selling price - Variable costs

= $28 - $12

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So, the breakeven is

= $100,000 ÷ $16

= 6,250 units

6 0
2 years ago
Broomhilda manufactures broomsticks for her fellow witch (and wizard) friends. Broomhilda uses a job order cost system and appli
nika2105 [10]

Answer:

Broomhilda

1. Predetermined overhead rate = overhead costs/direct labor costs

= $840,000/$700,000

= $1.20 per direct labor cost

2.  Job Cost Sheets for           Job 50      Job 51      Job 52

Beginning balances:

Direct materials                    $20,000

Direct labor                            $12,000

Manufacturing overhead      $16,000

3. Journal Entries for the purchase of raw materials and manufacturing overhead costs:

Debit Raw materials $90,000

Credit Accounts Payable $90,000

To record the purchase of raw materials on account.

Debit Manufacturing overhead $65,000

Credit Raw materials $17,000

Credit Wages $20,000

Credit Depreciation expense $12,000

To record the manufacturing overhead incurred.

4. Debit Job 50 $21,000

Credit Raw materials $10,000

Credit Direct labor $5,000

Credit Manufacturing overhead $6,000

To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 50.

Debit Job 51 $94,000

Credit Raw materials $39,000

Credit Direct labor $25,000

Credit Manufacturing overhead $30,000

To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 51

Debit Job 52 $74,000

Credit Raw materials $30,000

Credit Direct labor $20,000

Credit Manufacturing overhead $24,000

To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 52

5.  Job Cost Sheets for           Job 50      Job 51      Job 52

Beginning balances:

Direct materials                    $20,000

Direct labor                            $12,000

Manufacturing overhead      $16,000

Direct materials                     $10,000      $39,000     $30,000

Direct labor                             $5,000      $25,000     $20,000

Manufacturing overhead       $6,000      $30,000     $24,000

Total                                      $69,000      $94,000

6. Debit Accounts Receivable $280,000

   Credit Sales Revenue $280,000

To record the sale of goods (Jobs 49 and 50 for $122,000 and $158,000, respectively).

Debit Cost of Goods Sold $159,000

Credit Job 49 $90,000

Credit Job 50 $69,000

To record the cost of goods sold for Jobs 49 and 50.

7. Finished Goods Inventory balance = $94,000

This balance consists of Raw materials $39,000, Direct labor $25,000, and Manufacturing overhead $30,000 for Job 51.

8. The amount of over-or underapplied overhead:

Overhead incurred = $65,000

Overhead applied =   $60,000

Underapplied =            $5,000

Debit Cost of Goods Sold $5,000

Credit Manufacturing overhead $5,000

To close the underapplied overhead to the cost of goods sold.

Explanation:

Jobs 50 costs prior to September:

direct materials $20,000,

direct labor $12,000, and

manufacturing overhead $16,000

Total costs so far = $$48,000

Job 49 completed at a cost of $90,000

Beginning balance of Raw Materials Inventory = $15,000

Started Jobs 51 and 52, completed Jobs 50 and 51

Sold Jobs 49 and 50 on account for $122,000 and $158,000, respectively.

Additional events:

Raw materials purchased on account = $90,000

Manufacturing overhead incurred:

indirect materials $17,000

indirect labor $20,000

depreciation expense on equipment $12,000

Various manufacturing overhead = $16,000

Total = $65,000

Assignment of direct materials and direct labor to jobs:

Job no.   Direct Materials   Direct Labor   Manufacturing overhead

50                  10,000            5,000              $6,000

51                  39,000          25,000            $30,000

52                 30,000          20,000           $24,000

Estimated total manufacturing overhead costs = $840,000

Estimated direct labor costs = $700,000

Predetermined overhead rate = overhead costs/direct labor costs

= $840,000/$700,000

= $1.20 per direct labor cost

4 0
3 years ago
c. Assume that neither country experiences population growth or technological progress and that 6 percent of capital depreciates
tresset_1 [31]

Answer:

Check Explanation.

Explanation:

Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.

Thus Y/L = b; b = k^1/2 L^1/2/ L.

b = k^1/2.

From the question we are given that L = 6% = 0.06.

Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.

For country A,

(a). the steady state;

∆k = 0 = y - dk.

0 = 0.15 × k^1/2 - 0.06k.

K^1/2 = 2.5, k* = 6.25

(b). y = K^1/2 = (6.25)^1/2.

y* = 2.5

(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.

C* = 2.125.

Then, for COUNTRY B.

(a). ∆k = 0 = y - dk.

0 = 0.25 × k^1/2 - 0.06k.

K^1/2 = 4.167, k* = 17.36

(b). y = K^1/2 = (17.36)^1/2.

y* = 4.167.

(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.

C* = 3.127.

C* = 2.125.

4 0
3 years ago
Consider two markets the market for motorcycle and the market for pancakes the initial equilbrium for both market is the same th
Sergio [31]

To calculate the midpoint elasticity, simply use the midpoint formula: {(Q1-Q0)/ [(Q1+Q0)]/2} / {(P1-P0)/ [(P1+P0)]/2

Where P0 and Q0 are price and quantity at the initial moment and P1 and Q1 are price and quantity at the second moment.

Note: The prices are the same for both products and the initial quantity (Q0) as well. What changes is Q1.

pancakes market:

{(109-31) / [(109+31)/2] / {(11,75-5,50)/ [(11,75+5,5)]/2}

[ 78/ (140/2)] / [6,25/ (17,25/2)]

[78/70] / [6,25/8,65]

1,11/0,72 = 1,48 (elastic)

motorcycle market:

{(51-31) / [(51+31)/2] / {(11,75-5,50)/ [(11,75+5,5)]/2}

[ 20/ (82/2)] / [6,25/ (17,25/2)]

[20/41]/ [6,25/8,65]

0,48/0,72 = 0,66 (inelastic)

Conclusion: After the price increase, the quantities demanded for each product varied. The elasticity of demand for pancakes has proved elastic (very price sensitive) while the elasticity of demand for pancakes has been inelastic (not very sensitive to price changes).

Note: Demand elasticity is considered elastic when the value is greater than 1 and inelastic when less than 1.

5 0
3 years ago
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