Question

1. Kampman Company projects 2019 first quarter sales to be $ 20 comma 000 and increase by 5​% per quarter. Determine the projected sales for 2019 by quarter and in total. Round answers to the nearest dollar. 12. Fairfax Company manufactures and sells bicycles. A popular model is the XC. The company expects to sell 1 comma 400 XCs in 2018 and 900 XCs in 2019. At the beginning of 2018​, Friedman has 300 XCs in Finished Goods Inventory and desires to have 60​% of the next​ year's sales available at the end of the year. How many XCs will Fairfax need to produce in 2018​?

Answer 1

Answer and Explanation:

The computation of projected sales for 2019 by quarter and in total is shown below:-

Base sale amount Increase sale Quarter of projected

percentage sales

Quarter 1 $20,000

Quarter 2 $20,000 5% $21,000

Quarter 3 $21,000 5% $22,050

Quarter 4 $22,050 5% $23,152.5

Total $86,202.5

Here, we have increased 5% every quarter to reach quarter of projected sales.

The computation of XCs to be produce is shown below:-

Budgeted XCs to be produced + Desired ending inventory Available - opening finished inventory

= 1,400 + (900 × 60%) - 300

= 1,400 + 540 - 300

= 1,940 - 300

= 1,640