Wammy Company Makes Rolling Suitcases The Company's Policy Is That Ending Finished Goods Inventory Should
Wammy Company makes rolling suitcases. Its sales budget for four months is as follows: The company's policy is that ending finished goods inventory should equal 30% of the next month's sales. Beginning finished goods inventory (March 1) is 5,300 suitcases.
Each suitcase required 1.5 metres of ballistic nylon. The ending direct materials inventory policy for nylon is that 20% of the following month's production needs must be on hand. On March 1, Wammy had 10,450 metres of nylon in direct materials inventory.
Required:
A. Calculate the desired ending finished goods inventory of suitcases for April.
B. Calculate the budgeted production of suitcases for April.
C. Calculate the desired ending direct materials inventory of nylon for March.
D. Calculate the budgeted metres of nylon to be purchased in March.
E. Assuming each suitcase required 2 metres of ballistic nylon, calculate the desired ending direct materials inventory of nylon for March.
Correct Answer:
Verified
B....
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q125: Kanban Company estimated sales of 40,000 units
Q126: Calino Company developed the following data for
Q127: It is May 28 and you have
Q128: Flight Company makes luggage. One popular
Q129: Ulna Company production has variable manufacturing overhead
Q131: Lube-Fast provides oil changes and lubes. The
Q132: Glouster Company makes power tools. The
Q133: BacSac Company makes backpacks. Its production budget
Q134: CleanFace Company makes and sells two
Q135: Miller Corporation has the following sales
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents