Question : 31. Porcelain Interiors sells a variety of porcelain products including porcelain : 1291753

 

31. Porcelain Interiors sells a variety of porcelain products including porcelain sinks. On December 31, the company had 75 sinks in inventory. The company’s policy is to maintain a sink inventory equal to 10% of next month’s expected sales. The company expects the following sales activity for the first quarter of the year: 

January

750 sinks

February

1,000 sinks

March

1,150 sinks

 

 

What is the projected production for February? A. 1,115 sinksB. 1,015 sinksC. 985 sinksD. 1,215 sinks

 

32. Homestyle Interiors sells a variety of home furnishings including sleeper sofas. On March 31, the company had 225 sofas in inventory. The company’s policy is to maintain a sleeper sofa inventory equal to 15% of next month’s expected sales. The company expects the following sales activity for the second quarter of the year: 

April

1,500 sofas

May

1,600 sofas

June

1,700 sofas

 

 

What is the projected production for May? A. 1,600 sofasB. 1,105 sofasC. 1,585 sofasD. 1,615 sofas

 

33. Homestyle Interiors sells a variety of home furnishings including entertainment centers. On March 31, the company had 144 centers in inventory. The company’s policy is to maintain a entertainment center inventory equal to 9% of next month’s expected sales. The company expects the following sales activity for the second quarter of the year: 

April

1,600 centers

May

2,400 centers

June

1,500 centers

 

 

What is the projected production for May? A. 2,049 centersB. 2,319 centersC. 2,481 centersD. 2,751 centers

 

34. Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company’s policy is to maintain a cabinet inventory equal to 20% of next month’s sales. The company expects the following sales activity for the third quarter of the year: 

July

6,000 cabinets

August

8,000 cabinets

September

9,600 cabinets

 

 

In addition, October’s sales are projected to be 10,000 cabinets. What is the total required production for the third quarter? A. 23,600 cabinetsB. 24,400 cabinetsC. 25,600 cabinetsD. 26,800 cabinets

 

35. Keep-it-Cool Products Inc. manufactures a medium-sized drink cooler. On June 30, the company had 800 coolers in inventory. The company’s policy is to maintain a cooler inventory equal to 5% of next month’s expected sales. The company expects the following sales activity for the third quarter of the year: 

July

16,000 coolers

August

25,000 coolers

September

10,500 coolers

 

 

How many coolers should be produced in August? A. 24,275 coolersB. 25,725 coolersC. 25,525 coolersD. 23,225 coolers

 

36. Tunstall Manufacturing sells medical supplies, including stethoscopes. On September 30, the company had 3,000 stethoscopes in inventory. The company’s policy is to maintain an inventory equal to 15% of next month’s sales. The company expects the following sales activity for the fourth quarter of the year: 

October

20,000 stethoscopes

November

27,000 stethoscopes

December

24,000 stethoscopes

 

 

In addition, January sales for the following year are projected to be 30,000 stethoscopes. What is the total required production for the fourth quarter? A. 72,500 stethoscopesB. 69,500 stethoscopesC. 75,500 stethoscopesD. 68,000 stethoscopes

 

37. Donnelly ManufacturingDonnelly Manufacturing sells cedar birdhouses. The company has prepared the following sales forecast for the third quarter of 2013: 

July

10,000 units

August

12,000 units

September

20,000 units

 

 

Inventory at June 30, 2013 was budgeted at 1,500 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15% of next month’s budgeted unit sales. October’s sales are projected to be 24,000 units.Each completed unit of finished product requires 2.5 square feet of cedar at a cost of $3.5 per square foot. Refer to the Donnelly Manufacturing information above. The total required production of birdhouses for the third quarter of 2013 is: A. 39,900 unitsB. 44,100 unitsC. 45,600 unitsD. 40,500 units

 

38. Donnelly ManufacturingDonnelly Manufacturing sells cedar birdhouses. The company has prepared the following sales forecast for the third quarter of 2013: 

July

10,000 units

August

12,000 units

September

20,000 units

 

 

Inventory at June 30, 2013 was budgeted at 1,500 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15% of next month’s budgeted unit sales. October’s sales are projected to be 24,000 units.Each completed unit of finished product requires 2.5 square feet of cedar at a cost of $3.5 per square foot. Refer to the Donnelly Manufacturing information above. The company has determined that it needs 10 percent of next month’s raw material needs on hand at the end of each month.The cost of the direct material that should be purchased in August is: A. $121,975B. $  34,850C. $115,500D. $  46,200

 

39. Jones ManufacturingJones Manufacturing sells unique decorative water fountains. The company has prepared the following forecast for the first quarter of 2013: 

January

2,000 units

February

2,800 units

March

4,000 units

 

 

Ending inventory at December 31, 2012 was budgeted at 300 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15 percent of next month’s budgeted unit sales. April’s sales are projected to be 3,200 units.Each completed unit of finished product requires 2.5 pounds of compounding material at a cost of $4.00 per pound. The company has determined that it needs 20 percent of next month’s raw material needs on hand at the end of each month. Refer to the Jones Manufacturing information above. The total required production of water fountains for the first quarter of 2013 is: A. 8,800 unitsB. 8,020 unitsC. 8,620 unitsD. 8,980 units

 

40. Thurston ProductsThurston Products sells a popular style of running shoe. The company has prepared the following sales forecast for the second quarter of 2012: 

April

50,000 pairs

May

120,000 pairs

June

145,000 pairs

 

 

Ending inventory at March 31, 2012 was budgeted at 7,500 pairs. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15 percent of next month’s budgeted unit sales. July’s sales are projected to be 135,000 pairs.Each completed unit of finished product requires 2 pounds of rubber material at a cost of $1.75 per pound. The company has determined that it needs 20 percent of next month’s raw material needs on hand at the end of each month. Refer to the Thurston Products information above. The total required production of running shoes for the second quarter of 2012 is: A. 315,000 pairsB. 327,750 pairsC. 302,250 pairsD. 287,250 pairs

 

 

 

 

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