What is the budgeted production
Callon Industries has projected sales of 67,000 machines for 2012. The estimated January 1, 2012, inventory is 6,000 units, and the desired December 31, 2012, inventory is 15,000 units.
What is the budgeted production (in units) for 2012?
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Equipment with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2006, for $48,500. The machine was sold on January 5, 2011, for $13,000.
Given that production was greater than planned, should Cyril expect that all actual costs would be greater than budgeted? Which costs would you expect to increase, and which costs would you expect to remain relatively constant?
Evaluate the department in terms of its increases in sales and expenses. Do you believe it would be useful to investigate either or both of the increases in expenses?
Magnolia, Inc. manufactures bedding sets. The budgeted production is for 11,900 comforters in 2012. Each comforter requires 7 yards of material. The estimated January 1, 2012, beginning inventory is 5,390 yards.
Purchased 340000 shares of Amigo co. stock directly from founders for $21 per share. Amigo has 1000000 shares issued and outstanding. Jordan Products Inc. treated the investment as an equity method investment.
A leak in an underground storage tank belonging to Company B contaminated the adjacent property belonging to the ABC company. The approximate cost to repair the damage is $50,000.
Drake's Department stores prepares annual budgets in December for the coming year. The manager of the shoe department plans to pad his estimates of all costs by 10% so that his actual spending is never over budget.
Welch issues bonds dated January 1, 2011 with a par value of $250,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31.
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