8th EditionN. Gregory Mankiw814 explanations
2nd EditionDavid Anderson, Margaret Ray1,042 explanations
William A. McEachern958 explanations
7th EditionMichael Parkin, Robin Bade232 explanations
ACCOUNTINGSaphire, Inc., bottles and distributes mineral water from the company’s natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Required: 1. For 2018, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and$1.60 per 1-gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2018. 2. Saphire begins 2018 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Saphire to produce 1,200,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018? ACCOUNTINGTrail Runner USA guarantees tires against defects for five years or 55,000 miles, whichever comes first. Suppose Trail Runner USA can expect warranty costs during the five-year period to add up to 5% of sales. Assume that a Trail Runner USA dealer in Atlanta, Georgia, made sales of $564,000 during 2012. Trail Runner USA received cash for 40% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled$18,000 during 2012. Record the sales, warranty expense, and warranty payments for Trail Runner USA. Post to the Estimated Warranty Payable T-account. The beginning balance was $13,000. At the end of 2012, how much in estimated warranty payable does Trail Runner USA owe to its customers?
