21) Prime Time Home Furniture, a warehouse store specializing in bedroom furnishing sets is assembling the revenue budget for the next fiscal year. Sales of the current year indicate that they sold 64,000 units from their Super-Savings line and 12,000 units from their Specialty line. The average price of each Super-Savings unit is $800, while the average price of each Specialty unit is $1,450.
Required
Compute the total revenues? Next, determine which line provides the most revenue.
A) $17,400,000; The Specialty line.
B) $58,600,000; The Super-Savings line.
C) $68,600,000; The Super-Savings line.
D) $23,500,000; The Specialty line.
E) $32,300,000; The Specialty line.
22) An equipment supply manager at a large outlet needs to prepare a Production Budget. The budgeted unit sales amount to 5,200 units. The ending finished goods inventory shows 700 units, and the beginning finished goods inventory shows 1,000 units.
Required
Compute the value of the beginning inventory on the Production Budget.
A) 6,500 units
B) 5,500 units
C) 7,200 units
D) 4,800 units
E) 5,200 units
23) The Bay Manufacturing Company expects to sell 25,000 pens at $26 each. The direct material costs are $5 and direct manufacturing labor is $9, and manufacturing overhead is $1.80 per pen. The following inventory levels apply to 2012:
Beginning Inventory
Ending Inventory
Direct materials29,000 units29,000 units
Work-in-process inventory0 units0 units
Finished goods inventory3,000 units3,500 units
On the 2013 budgeted income statement, what amount will be reported for sales? How many pencils need to be produced in 2013? Compute the amount of cost of goods sold on the 2013 budgeted income statement.