Question

Deacon Inc. produces leather handbags. The production budget for the next four months is: July 5,350...

Deacon Inc. produces leather handbags. The production budget for the next four months is: July 5,350 units, August 6,940, September 7,950, October 8,080. Each handbag requires 0.4 square meters of leather. Deacon Inc.’s leather inventory policy is 45% of next month’s production needs. If the leather policy is met, what will the July 31 inventory be?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation of Inventory as on July 31

Inventory policy = 45% of next month’s production needs

Production for August = 6,940 units

Leather required for production = 6,940 units * 0.40 square meter

= 2,776 square meter leather

Hence inventory as on July 31 = 2,776 square meter * 45%

                                                       = 1,249.20 square meter leather

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Deacon Inc. produces leather handbags. The production budget for the next four months is: July 5,840...
Deacon Inc. produces leather handbags. The production budget for the next four months is: July 5,840 units, August 6,810, September 7,300, October 8,530. Each handbag requires 0.4 square meters of leather. Deacon Inc.’s leather inventory policy is 25% of next month’s production needs. If the leather policy is met, what will the July 31 inventory be?
Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,600...
Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,600 units, August 7,400, September 8,800, October 8,300. Each handbag requires 0.5 square meters of leather. Jared Inc.’s finished goods inventory policy is 10% of next month’s sales needs. Jared Inc.’s leather inventory policy is 35% of next month’s production needs. What will leather purchases be in August? Multiple Choice 3,789 square meters 3,712 square meters 3,982 square meters 3,687 square meters
Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,400...
Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,400 units, August 7,200, September 8,400, October 8,600. Each handbag requires 0.5 square meters of leather. Jared Inc.’s finished goods inventory policy is 10% of next month’s sales needs. Jared Inc.’s leather inventory policy is 30% of next month’s production needs. What will leather purchases be in August? 3,733 square meters 3,825 square meters 3,675 square meters 3,650 square meters
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,000...
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000, September 7,500, October 8,000. Each handbag requires 0.5 square meters of leather. Jackson Inc.'s leather inventory policy is 30% of next month's production needs. On July 1 leather inventory was expected to be 1,000 square meters. What will leather purchases be in August?
Kawards & Layyers Inc. produces leather handbags. The production budget for the next four months is:...
Kawards & Layyers Inc. produces leather handbags. The production budget for the next four months is: July 5900 units, August 7200, September 8100, October 85oo Each handbag requires o.5 square meters of leather. Kaward & Layyers's leather inventory policy is 20% of next month's production needs If the leather policy is met, what will the July 1 inventory be? Select one: a. 1665.o square meters b.720.0 square meters C 140.0 square meters d. 590.o square meters
Maple Inc. produces wooden boxes. The production budget for the next four months is: July 15,600...
Maple Inc. produces wooden boxes. The production budget for the next four months is: July 15,600 units, August 17,300, September 17,800. Each box requires three skill levels: 1.1 hours of unskilled labor (paid $11 per hour), 1.6 hours of semi-skilled labor (paid $11) and 1.8 hours of skilled labor (paid $14 per hour). Required: Prepare a labor budget for the three months July – September. Provide the labor requirements according to skill level in hours and in labor cost as...
Madrid Inc. has the following budgeted production in units for the next four months: Units Month...
Madrid Inc. has the following budgeted production in units for the next four months: Units Month Produced June 90,000 July 120,000 August 210,000 September 150,000 Two pounds of raw materials are required for each unit produced. Ending raw materials inventory should equal 30% of next month’s production needs. Raw materials inventory on June 1st was 54,000 pounds. Madrid's total required raw material purchases in pounds for July are: Group of answer choices are 240,000 158,000 366,000 294,000
Sly Fox & Co produces Model X Cheeeters. The production budget for the next four months...
Sly Fox & Co produces Model X Cheeeters. The production budget for the next four months is: July 530o units, August 7200, September 7800, October 8700. Each Model X requires 1.6 hours of unskilled labor (paid $10 per hour) and 2.6 hours of skilled labor (paid $19 per hour). How many unskilled labor hours and skilled labor hours will be budgeted for August? Select one a. 7200 b. 18,720 C 11,520 d. 30,240
Production Budget and Direct Materials Purchases Budget Jani Subramanian, owner of Jani's Flowers and Gifts, produces...
Production Budget and Direct Materials Purchases Budget Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year. September 250 October 200...
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September,...
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,930 units June 6,240 units Forecast: July 5,910 units August 6,890 units September 5,630 units October 5,210 units Required: a. The firm’s policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month’s sales. It is currently estimated that there will be 4,137 units on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT