Q1) Alpha company anticipated unit sales of widgets are January, 5,000; February, 4,000; and March 8,000. Alpha consistently maintained finished goods inventory at 80% of the following month's sales. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. the total number of units that Alpha Company must produce in January.
2. the total number of units that Alpha Company must produce in February.
Q2) Alpha company makes units that each requires 2 pounds of material at $3 per pound. Alpha is planning that 500 and 700 units will be built in May and June, respectively. Alpha keeps material on hand at 20% of the next month's production needs. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. Raw Material Costs for May's Production
2. Total Cost of May's Raw Materials Purchases
Q3) Alpha Company has budgeted activity for October to reflect net income $120,000. All sales are credit sales. Receivables are planned to increase by $35,000, payables to decrease by $25,000 and Depreciation Expense is $55,000. Use this information to determine how much cash will increase (decrease) during the month of October. (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
Q4) Alpha Company provides the following information for their first year of operations in 2016:
Sales, 5,000 units @ $10 each
Total production, 7,500 units
Selling and administrative costs:
Fixed $1,000
Variable $1 per unit
Production costs per unit:
Direct materials $2.00
Direct labor $2.00
Variable overhead $1.00
Fixed manufacturing overhead $7,500
Alpha Company uses absorption costing. Use this information to determine for Alpha Company the FY 2016: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. Cost of Goods Sold
2. Net Income
3. Cost of Ending Inventory
Q5) in 2016:
Sales, 5,000 units @ $10 each
Total production, 7,500 units
Selling and administrative costs:
Fixed $1,000
Variable $1 per unit
Production costs per unit:
Direct materials $2.00
Direct labor $2.00
Variable overhead $1.00
Fixed manufacturing overhead $7,500
Alpha Company uses direct (variable) costing. Use this information to determine for Alpha Company the Y 2016: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. Contribution Margin
2. Net Income
3. Cost of Ending Inventory