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savannahvargas512
05.05.2020 •
Business
Tyler Co. predicts the following unit sales for the next four months: April, 3,100 units; May, 4,900 units; June, 7,000 units; and July, 2,800 units. The company’s policy is to maintain finished goods inventory equal to 30% of the next month’s sales. At the end of March, the company had 600 finished units on hand. Prepare a production budget for each of the months of April, May, and June.
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Ответ:
Production Budget April 3970 May 5530 June 5740 units
Explanation:
Tyler Co.
Production Budget
For the months of April, May, and June.
Particulars April, May, June July
Sales 3100 4900 7000 2800(given)
+ Desired Ending Inv. 1470 2100 840
Less Beginning Inv. 600 1470 2100
Production Budget 3970 5530 5740
The Production budget is calculated by adding sales to the desired ending inventory and subtracting the beginning inventory from it. Each month's ending inventory is next month's beginning inventory.
The Ending Inventory is calculated by taking 30% of the next months' sales.
Ending Inventory for April = 4900*30%=1470
Ending Inventory for May = 7000*30%=2100
Ending Inventory for April = 2800*30%=840
Ответ:
Compounding.
Explanation:
Compounding is typically an accounting process used for the conversion of present values of an asset, investment or money into future values.
Generally, a compound interest is calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods. This interests is compounded for a certain number of times such as daily, weekly, quarterly or annually.
Mathematically, to find the future value from the present value of an asset or investment, we would use the compound interest formula;
Where;
A is the future value. P is the principal or starting amount. r is annual interest rate. n is the number of times the interest is compounded in a year. t is the number of years for the compound interest.