[needygirl]

Osage Inc.. Has actual sales for June and July and forecast sales for August, September, October, and November as follows:


Actual:
June 4,150 units
July 4,350 units
Forecasted:
August 4,200 units
September 4,950 units
October 3,900 units
November 3,700 units

Required:
(a)
The firm’s policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month’s sales. It is currently estimated that there will be 3,300 units on hand at the end of July. Calculate the number of units to be produced in each of the months of August, September, and October.

Production:
August?
September?
October?

(b)
Each unit of finished product requires 5 pounds of raw materials. The firm’s policy is to have raw material inventory on hand at the end of each month that is equal to 80% of the next month’s estimated usage. It is currently estimated that 13,000 pounds of raw materials will be on hand at the end of July. Calculate the number of pounds of raw materials to be purchased in each of the months of August and September.

Purchases:
August?
September?

[needygirl]

Flagstaff Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:


Actual:
July $ 73,500
August 78,750
Forecasted:
September 85,500
October 70,500
November 91,500
December 80,250

Based on past experience, it is estimated that 30% of a month's sales are collected in the month of sale, 50% are collected in the month following the sale, and 18% are collected in the second month following the sale.

Required:
Calculate the estimated cash receipts for September, October, and November.

[needygirl]

A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad:

The piece of sheet metal from which five pad cases can be made costs $0.24.
This amount is based on the number of sheets in a 4,200-pound bundle of sheet metal, which is the usual purchase quantity.
The foam pad that is put in the case costs $0.06, based on the number of pads that can be cut from a large roll of foam.
Production standards, based on engineering analysis recognizing attainable performance, provide for the manufacture of 1,000 pads by two workers in an eight-hour shift. The standard direct labor pay rate is $15 per hour.
Manufacturing overhead is applied to units produced using a predetermined overhead application rate of $16 per direct labor hour, of which $6 per hour is fixed manufacturing overhead.

Required:
(a)
Calculate the standard absorption cost of a package of 10 stamp pads. (Do not round your intermediate calculations. Round final answer to 2 decimal places.)

Standard absorption cost per package: ?

(b)
Stamper Manufacturing Co.'s management is considering a special promotion that would result in increased sales of 500 packages of 10 pads per package. Calculate the cost per package that is relevant for this analysis. (Do not round your intermediate calculations. Round final answer to 2 decimal places.)

Relevant cost per package: ?

[needygirl]

A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad:

The piece of sheet metal from which five pad cases can be made costs $0.24.
This amount is based on the number of sheets in a 4,200-pound bundle of sheet metal, which is the usual purchase quantity.
The foam pad that is put in the case costs $0.06, based on the number of pads that can be cut from a large roll of foam.
Production standards, based on engineering analysis recognizing attainable performance, provide for the manufacture of 1,000 pads by two workers in an eight-hour shift. The standard direct labor pay rate is $15 per hour.
Manufacturing overhead is applied to units produced using a predetermined overhead application rate of $16 per direct labor hour, of which $6 per hour is fixed manufacturing overhead.

Required:
(a)
Calculate the standard absorption cost of a package of 10 stamp pads. (Do not round your intermediate calculations. Round final answer to 2 decimal places. Omit the "$" sign in your response.)

Standard absorption cost per package $

(b)
Stamper Manufacturing Co.'s management is considering a special promotion that would result in increased sales of 500 packages of 10 pads per package. Calculate the cost per package that is relevant for this analysis. (Do not round your intermediate calculations. Round final answer to 2 decimal places. Omit the "$" sign in your response.)

Relevant cost per package $

[psimons192]

you need to multiply the actual / forecasted sales by 30% & 50% & 18%

so for September
18% of July ( 2nd month ) is 73,500 * 8.18 = 13,230
50% of August ( month following sale) is 78,750 * 50 = 26,650
30% of Sept (current month of sale) is 85,500 *30 = 39,375

add these three totals together for the answer

so for the month of September the estimated receipts are $78,255

follow the pattern for October and November