User Account

All Pages

Determine the cash outflows for december production

Assignment Help Financial Accounting
Reference no: EM132523434

Point 1: Bandamere Lighting Inc. uses the sales forecast to plan production. The company produces the magnetic light bulb called "Bright-1" one month in advance of the forecasted sale. The January sales forecast of 38 units of these bulbs will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and the company has precisely calculated that it needs about 18.42% in inventory to accommodate sales above forecast. Raw materials for Bright-1 are acquired the month ahead (in this case, November). Wages are paid in the current month of production (December). Utilities are paid a month after production (January), and shipping is paid a month after the sale (two months after production, February). Finally, an inventory count reveals that there are currently 3 units on hand above the projected sales for November (at the start of November when the raw material order is placed). Unit production costs are $50 for raw materials, $30 for wages, $20 for utilities, and $10 for shipping.

Question 1: Determine the cash outflows for December's production.

Reference no: EM132523434

Questions Cloud

Why could be an area at risk for earnings management : Accounting for bad debts requires management to make an estimate on future collectability of receivables. Why could be an area at risk for earnings management.
Develop an informative powerpoint presentation : Develop an informative PowerPoint presentation that could be used to teach your classmates about a variety of nutrients from the nutrient categories
Which objectives do you feel are most important : Of the objectives listed for the older adult, which two do you feel are most important? Include examples and references to support your response.
What rate of return does the firm earn on its operations : What effect will this transaction have on the firm's return on common equity if the same level of operating profitability is maintained????
Determine the cash outflows for december production : Determine the cash outflows for December production. Bandamere Lighting Inc. uses the sales forecast to plan production. The company produces the magnetic light
What could be the underlying cause of the symptoms : What could be the underlying cause of these symptoms? What laboratory tests would be needed to confirm possible differential diagnoses?
Public debt offerings and private debt offerings : Provide a recent example of corporations using each type of offering. Provide some references
Prepare income statement to obtain operating income : Produce a reformulated balance sheet using the above balance sheet information. income statement to obtain 'Operating income from sales after tax'
What are the provisional and differential diagnoses : Male 20 y/o College student Marihuana ocassional user. Heterosexual choices with no regular partner. He loves parties and Practice Soccer regularly.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute return on capital employees ratios

Compute the following ratios for Golden Times Ltd.:- Return on capital employees  - The profit margin - The turnover of capital.

  How much gain or loss should be recognized on the bond

January 1, 2021, at 104. Unamortized bond premium on that date was $176,800. How much gain or loss should be recognized on this bond retirement?

  Explain the relationship of the parties in capital markets

Explain the relationship of the parties in the capital markets. What are the direct and indirect conflicts of interests, if any, of each? How are conflicts resolved?

  General ledger entry to record the purchase of materials

The general ledger entry to record the purchase of materials is:

  Prepare budgets-budget figures are often biased

Because people prepare budgets, budget figures are often biased. Which is true?

  Does an asset typically have a debit or credit balance

Does an Asset typically have a Debit or Credit balance? Does a Liability typically have a Debit or Credit balance? What are the sections in the P&L, and some typical accounts in each?

  High correlation between two variables means

"High correlation between two variables means that one is the cause and the other is the effect." Do you agree? Explain. What is a cost function? What are the assumptions that are used to estimate cost functions? “Relevant costs for pricing decisions..

  What is the present value of your windfall

You have just received notification that you have won the $3.0 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value ..

  What is the needed rate of return

What is the needed rate of return on a stock that has a beta of 0.7?

  Why do capital expenditures increase assets

Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?

  Selling and administrative expenses adjusted to a cash basis

Selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be

  Determine what is the current book value of the equipment

ABC Company purchased a 3-year MACRS property for $52,627 3 years ago. What is the current book value of this equipment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd