LP 3 Assignment

Chapter 4

6. Cyber Security Systems had sales of 3,000 units at $50 per unit last year. The marketing manager

projects a 20 percent increase in unit volume sales this year with a 10 percent price increase. Returned

merchandise will represent 6 percent of total sales. What is your net dollar sales projection for this year?

11. On December 31 of last year, Wolfson Corporation had in inventory 400 units of its product, which

cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit.

Assuming that Wolfson Corporation sold 700 units in January, what was the cost of goods sold (assume

FIFO inventory accounting)?

13. At the end of January, Mineral Labs had an inventory of 725 units, which cost $10 per unit to

produce. During February the company produced 650 units at a cost of $14 per unit. If the firm sold

1,000 units in February, what was the cost of goods sold?

a.) Assume LIFO inventory accounting.

b.) Assume FIFO inventory accounting.

24. Lansing Auto Parts, Inc., has projected sales of $25,000 in October, $35,000 in November, and

$30,000 in December. Of the company's sales, 20 percent are paid for by cash and 80 percent are sold on

credit. The credit sales are collected one month after sale. Determine collections for November and

December. Also assume that the company's cash payments for November and December are $30,400 and

$29,800, respectively. The beginning cash balance in November is $6,000, which is the desired minimum

Balance. Prepare a cash budget with borrowing needed or repayments for November and December.

(You will need to prepare a cash receipts schedule first.)