Questions from General Accounting

Q: Raider-X Company forecasts sales of 18,000 units for

Raider-X Company forecasts sales of 18,000 units for April. Beginning inventory is 3,000 units. The desired ending inventory is 30% higher than the beginning inventory. How many units should Raider-X...

Q: Prepare a flexible budget performance report title (in proper form)

Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2015. Why is a proper title important for this or any report?

Q: Lexi Company forecasts unit sales of 1,040,000 in

Lexi Company forecasts unit sales of 1,040,000 in April, 1,220,000 in May, 980,000 in June, and 1,020,000 in July. Beginning inventory on April 1 is 280,000 units, and the company wants to have 30% of...

Q: Montel Company’s July sales budget calls for sales of $600,

Montel Company’s July sales budget calls for sales of $600,000. The store expects to begin July with $50,000 of inventory and to end the month with $40,000 of inventory. Gross margin is typically 40%...

Q: Activity-based budgeting is a budget system based on expected activities

Activity-based budgeting is a budget system based on expected activities. (1) Describe activity-based budgeting, and explain its preparation of budgets. (2) How does activity-based budgeting differ...

Q: Royal Philips Electronics of the Netherlands reports sales of €25,

Royal Philips Electronics of the Netherlands reports sales of €25,400 million for a recent year. Assume that the company expects sales growth of 3 percent for the next year. Also assume that selling e...

Q: Grace manufactures and sells miniature digital cameras for $250 each.

Grace manufactures and sells miniature digital cameras for $250 each. 1,000 units were sold in May, and management forecasts 4% growth in unit sales each month. Determine (a) the number of units of c...

Q: Liza’s predicts sales of $40,000 for May and $

Liza’s predicts sales of $40,000 for May and $52,000 for June. Assume 60% of Liza’s sales are for cash. The remaining 40% are credit sales; these customers pay in the month following the sale. Compute...

Q: Zortek Corp. budgets production of 400 units in January and 200

Zortek Corp. budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of raw material Z, which costs $2 per pound. Each month’s ending inventory of...

Q: Tora Co. plans to produce 1,020 units in July

Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July.