Calculate the number of pounds of raw materials

Assignment Help Accounting Basics
Reference no: EM132999007

Question - Osage Inc. has actual sales for May and June and forecast sales for July, August, September and October as follows:

Actual:

May - 5,900 units

June - 6,240 units

Forecast:

July - 5,950 units

August - 6,820 units

September - 5,530 units

October - 5,260 units

a) The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month's sales. It is currently estimated that there will be 4,165 units on hand at the end of June. Calculate the number of units to be produced in each of the months of July, August and September.

b) Each unit of finished product requires 5 pounds raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 60% of next month's estimated usage. It is currently estimated that 26,500 pounds of raw material will be on hand at the end of June. Calculate the number of pounds of raw materials to be purchased in each of the months of July and August.

Reference no: EM132999007

Questions Cloud

What is the maximum credit score possible : 1. What is the maximum credit score possible? 2. Does an individual's income impact their credit score?
Which of united states supreme court decisions establishes : Which of United States Supreme Court decisions establishes that the exclusionary rule, while a very effective device for discouraging illegal searches
Describe two to three macroeconomic factors : Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates in your selected indu
Which is true regarding the bill of rights : Which is true regarding the Bill of Rights? It consists of the first twelve amendments to the United States Constitution, which were enacted at various times
Calculate the number of pounds of raw materials : It is currently estimated that 26,500 pounds of raw material will be on hand at the end of June. Calculate the number of pounds of raw materials
Prepare journal entries to record purchase of building : Prepare the journal entries to record the purchase of the building and the mortgage loan on November 30, 2021, and the first two payments on December 31, 2021.
What the amortization of other comprehensive loss is : What the amortization of Other Comprehensive Loss for 2022 is? There were no actuarial gains or losses at January 1, 2021. The average remaining service life.
What is the probability of the pg : You are analyzing the returns of PG stock and have determined the expected return of the stock is 6% p.a. you are 97.5% certain that the stock will not have a r
Make consolidation journal entries that large ltd will need : Based on the above information, make the consolidation journal entries that Large Ltd will need to pass on 30 June 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  How should the company calculate bantas overtime pay

These extra hours also pushed Banta's work time over 40 hours. How should the company calculate Banta's overtime pay

  What difference in ordinary negligence and gross negligence

Discuss the difference in ordinary negligence and gross negligence.Liability of auditors has evolved over the past 80 years through many changes

  Prepare two different depreciation schedules for equipment

Prepare two different depreciation schedules for the equipment - one using the double-declining balance method

  Record the accrued interest on the liability at the end

An arrangement with a consortium of distributors requires that all recall costs be settled at the end of 2017. Record the accrued interest on the liability

  Sarah who has a terminal illness cashed in her life

sarah who has a terminal illness cashed in her life insurance policy cost of 24000 and proceeds of 50000 to go on an

  Which portion is classified as the long-term portion of note

Due at the end of every year beginning on December 31, 2019. Which portion is classified as the long-term portion of Notes Payable at December 31, 2018?

  Brittman corporation makes three products that use the

brittman corporation makes three products that use the current constraint-a particular type of machine. data concerning

  How income statement expenses are separated into materials

On a manufacturer's income statement expenses are separated into the materials, work in process, and finished goods three categories

  What is the gross profit for the year for gold company

Gold Company showed net income of P 480,000 for the year. Selling expenses were equal to 15% of sales. What is the gross profit for the year?

  Compute basic and diluted earnings per share

Compute basic and diluted earnings per share for Garner Company for 2018. Show how income and EPS will be reported for 2018 and 2017

  Factory overhead is applied using a plant-wide rate

Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000. Job XY5 consists of 50 units. What is overhead cost a..

  Make the journal entries to record the purchase of stock

Make the journal entries to record the purchase of stock in Year 6 and the transfer of the stocks into the equity classification

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd