[shimere123]

Can someone check to see if I have done these correctly,please and thank you.And if not please explain.

Cyber security had sales of 3,ooo units at $50.00 per unit last year.The marketing manager projects a 20% increase in unit volume sales this year with a 10% increase.Returned merchandise will represent 6% of total sales.What is your net dollar sales projection for this year?

1.projection for unit and volume
.20x3000=600
.10x50=5

2.find net sales
3600 units x55=198,000

3. find return merchandise
.06x198,000=11880

4. subtract return from net sales.

198,00-11880=186,120

question 2

Delsing plumbing company has beginning inventory of 14,000 units, will sell 50,000 units for the month,and desires to reduce ending inventory to 40% of beginning inventory.How many units should Delsing produce?

Beginning inventory 14,000
Will sale 50,000 unit in a month

1. Beginning inventory+ projected sales
14,000+50,000
=64,000


2. Subtract beginning inventory
64,000-14,000=50,000

3.multiple beginning and percentage

14,000x40%=5600 to produce


Third question

At the end of January,Higgins data system had an inventory of 600 units, which cost $16.00 per unit to produce. During February the company produced 850 units at a cost of 19.00 per unit.IF the firm sold 1,100 units in February, what was its cost of goods sold.(assume LIFO inventory accounting)
I know LIFO means last in frist out)

1. newest unit on top
850 units price=16 per unit
600 units price=19 per unit

2.Find number of units sold from inventory
multiple price paid for recent unite by number of units sold

(850x19)=16150
(600x16)=9600

3. subtract 16150-9600= 655

[ArcSine]

First one looks good... nice work. The other two need a bit more thought.

For the second one, 5,600 units is the targeted ending inventory. So, if you start the month with 14,000 units in the house, you expect to sell 50,000 units during the month, and you want to end the month with 5,600 still in the house, how many will you have to make during the month?

For the third one you're going to sell 1,100 units and use LIFO. So your COGS--under LIFO--assumes that the 1,100 units you sell come from...

... first, the 850 units you make this month; and then, the remainder (250 units) come from your beginning inventory.

Give those last two another whirl and you'll do fine.

[morgaine300]

The marketing manager projects a 20% increase in unit volume sales this year with a 10% increase.

Please be careful when copying problems... 10% increase of what? It's only from looking at your work I figured this out. (If you'd messed it all up, I might not have.)

1.projection for unit and volume
.20x3000=600
.10x50=5

All your calculations for this first one are correct. However, are these 4 steps just steps you chose to do? Or are you required to give the answers to these steps? If you need to give the answers, note that this first step is giving you the increases, not the actual final projected numbers.

There's also a short-cut for this. 3000 x .20 only gives you the 20% increase. If you do 3000 x 1.20 (120%), then that includes the original 3000 in the calculation and gives you the final answer of 3600 as the new volume.

question 2

Delsing plumbing company has beginning inventory of 14,000 units, will sell 50,000 units for the month,and desires to reduce ending inventory to 40% of beginning inventory.How many units should Delsing produce?

Beginning inventory 14,000
Will sale 50,000 unit in a month

1. Beginning inventory+ projected sales
14,000+50,000
=64,000


2. Subtract beginning inventory
64,000-14,000=50,000

3.multiple beginning and percentage

14,000x40%=5600 to produce

Always think about the logic of your answers. You're estimating sales of 50,000 units with only 14,000 in beginning inventory. Do you think producing only 5600 is going to be sufficient? You can't always know if your exact number is correct, but if you think about what you're doing, you can at least know when something is big-time off like this. You have to stop and think about whether your answer makes any sense.

Let's work this back out, as a check:
You have 14,000 units and you produce 5600. You now have 19,600. And you're going to sell 50,000... might as well stop there cause that's impossible.

The difficulty started in step #1. Think about it. Also look at #3. The problem says they desire to reduce ending inventory to 40% of beginning inventory. And yet when you took 40% of beginning inventory, you chose that as the amount to produce. That isn't what the problem says. Read carefully, phrase by phrase to see what they're saying.

1. newest unit on top
850 units price=16 per unit
600 units price=19 per unit

I'd say it's a bad habit to put the newest ones on top. If you ever have to do a long perpertual one of these, that could cause some confusion. Good idea to keep them in order. In fact, it did cause you confusion, cause you put the number of units with newest on top, and then put the costs with oldest on top, so that they're not even matched up correctly. Better just to keep them all in order, regardless of method, to keep consistent about it. That's not a "rule" - just a suggestion.

2.Find number of units sold from inventory
multiple price paid for recent unite by number of units sold

(850x19)=16150
(600x16)=9600

It says find the units sold. You've just sold 1450 from this calculation when it says you sold 1100.

This is a common problem I see. People don't want to split up a purchase. As though those 600 units have to stay glued together for some reason. No they don't. You got 600 units all at the same time - they're only separated out because they're at a different cost. You sold 1100. You're starting with the last in, the 850 group, so all those got sold. But how many more do you need in order to reach the 1100 sold? You didn't sell all 600 of them.

3. subtract 16150-9600= 655

Two things wrong here:
1) 16150-9600 doesn't equal 655. Always think about the logic of your answers. It doesn't make sense to have 16 thousand of something, subtract approximately 10 thousand, and end up with only 600 of them, does it? I'm sure you just popped something into the calculator wrong, but if you're paying attention, you should "feel" that something is wrong here. (In other words, stop just plugging n chugging, and start thinking. I blame this partly on the schools, cause they teach plug n chug.)
2) If you subtract the 9600 (which was all 600 units) from the 16150 (which was all 850 units), then you're right back at just the 850 units. Because you just took the entire 600 away. If you were going to just subtract back out the entire group of 600, why bother having figured it out to begin with?

As you can see, I'm into thinking, not plug n chug, because it doesn't work in the long run. Think about all this and see what you can correct. If you try to think about what you're doing and what it means, you can better apply it to other problems.

[morgaine300]

Oops, didn't realize another answer was already there. But you know me... got to go into 300 tons of detail.