Kobalt Enterprises, Inc. manufactures wheelbarrows which the…

Kobalt Enterprises, Inc. manufactures wheelbarrows which the company sells for $400 per unit. Budgeted sales revenue is $224,000 for March, $408,000 for April, and $256,000 for May. The desired ending inventory (safety stock) is 25% of the next month’s budgeted sales. How many units does Kobalt need to produce in April? 

Bayside Distributors’ sales budget for the first quarter is…

Bayside Distributors’ sales budget for the first quarter is as follows: The company’s policy is to set selling prices to earn a 40% gross profit on sales revenue and to maintain an ending inventory balance equal to 30% of the next month’s cost of goods sold. What is the dollar amount of inventory purchases that is budgeted for the month of February? 

Bandana Corporation, a merchandising firm, has budgeted its…

Bandana Corporation, a merchandising firm, has budgeted its activity for the month of May based on the following assumptions: All sales are cash sales and all selling and administrative expenses are paid in cash. In addition, cost of goods sold is 75% of sales revenue and all purchases are paid for in cash. What is Bandana’s budgeted operating income for May? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Auto Mart Corporation operates six auto dealerships in Flori…

Auto Mart Corporation operates six auto dealerships in Florida, including one in Tampa. Here are data regarding the company’s results of operations for the month of July:  Each auto dealership has three departments—new vehicles, used vehicles and auto repair services. The central auto parts warehouse serves all six dealerships. What is the total amount of direct costs related to the Tampa dealership’s new vehicles department? 

Auto Mart Corporation operates six auto dealerships in Flori…

Auto Mart Corporation operates six auto dealerships in Florida, including one in Tampa. Here are data regarding the company’s results of operations for the month of July:  Each auto dealership has three departments—new vehicles, used vehicles and auto repair services. The central auto parts warehouse serves all six dealerships. What is the total amount of direct costs related to the Tampa dealership’s new vehicles department?