ACG 3341-1 Individual Week 6
Exercise 6-17: Sales and production budget
The McKnight Company expects sales in 2015 of 208,000 units of serving trays. McKnight’s beginning inventory for 2015 is 18,000 trays, and its target ending inventory is 27,000 trays. Compute the number of trays budgeted for production in 2015.
Exercise 6-18: Direct materials budget
Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.
Exercise 6-25: Activity-based budgeting
The Jerico store of Jiffy Mart, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2015. Jiffy Mart has three product categories: soft drinks (35% of COGS), fresh produce (25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consume indirect resources at the Jerico store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2015.