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).