Please open file for question BE21-4 and help me understand why the highlighted portion in yellow is


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Please open file for question BE21-4 and help me understand why the highlighted portion in yellow is 1 answer below » Please open file for question BE21-4 and help me understand why the highlighted portion in yellow is incorrect E20-2 Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Product XQ-103 XQ-104 Unit Sales Quarter 1 Quarter 2 20,000 25,000 12,000 15,000 No changes in selling prices are anticipated. Hint: Prepare a sales budget for 2 quarters. View complete question » Please open file for question BE21-4 and help me understand why the highlighted portion in yellow is incorrect E20-2 Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Product XQ-103 XQ-104 Unit Sales Quarter 1 Quarter 2 20,000 25,000 12,000 15,000 No changes in selling prices are anticipated. Hint: Prepare a sales budget for 2 quarters. Document Preview: Please open file for question BE21-4 and help me understand why the highlighted portion in yellow is incorrect
E20-2 Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Product XQ-103 XQ-104 Unit Sales Quarter 1 Quarter 2 20,000 25,000 12,000 15,000 No changes in selling prices are anticipated. Hint: Prepare a sales budget for 2 quarters. (SO 3) Instructions Prepare a sales budget for the 2 quarters ending June 30, 2010. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total. Qtr 1 Price Units 103 104 10 10 20 Total 30 5 Revenue 300 50 Qtr 2 Price Units 1 20 21 5 10 Revenue 5 200 205 Units 11 30 41 6 month Price Revenue 305 0 305 E20-5 Moreno Industries has adopted the following production budget for the first 4 months of 2011. Month Units Month January 10,000 March February 8,000 April Units 5,000 4,000 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month’s production requirements. Hint: Prepare a direct materials purchases budget. (SO 3) Instructions Prepare a direct materials purchases budget by month for the first quarter. Jan Units to be Produced lbs Mat’l per unit Total lbs mat’ required Feb Mar Apr 10,000 3 30000 4,000 3 12000 -7200 4500 -4500 3600 -3600 0 28200 $56,400 Total mat’l required Mat’l Budget 5,000 3 15000 -9000 7200 Begin mat’l inventory ending Inventory 8,000 3 24000 21300 $42,600 14100 $28,200 8400 $16,800 BE21-4 Hannon Company expects to produce 1,225320 units of Product XX in 2010. Monthly production is expected to range from 74340 to… Attachments: Q-Attachment…..docx Q-Attachment-….xlsx View less » Jul 30 2015 12:25 PM

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