Posted: May 3rd, 2016
Valentino Company had the following budgeted sales over the last 4 months of the year: Sales in Units October 10,000 November 25,000 December 35,000 January 46,000 The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month’s sales. The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December
The following is a list of activities that occur for a company that sells many different types of products. Please classify each as either examples of unit level (U), batch Level (B), product level (P), or organization sustaining activity (O):
a. Packing labor wages u
b. Materials handling labor wages u
c. part administrators’ salaries
d. plant management salaries
e. production scheduling staff salaries
f. Cost of servicing production equipment, based on hours used o
g. property taxes for a plant site
h. Production expediters’ salaries
i. Insurance for plant facility
j. Plant security
k. Production workers’ training
l. Cost of electricity to run production equipment
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