Company total required production

Assignment Help Accounting Basics

Reference no: EM13142071

San Fernando Fertilizer Company plans to sell 270,000 units of finished product in July and anticipates a growth rate in sales of 30 percent per month. The desired monthly ending inventory in units of finished product is 70 percent of the next month's estimated sales. There are 189,000 finished units in inventory on June 30. Each unit of finished product requires four pounds of raw material at a cost of $1.55 per pound. There are 800,000 pounds of raw material in inventory on June 30.

Compute the company's total required production in units of finished product for the entire three month period ending September 30.

Independent of your answer to requirement (1), assume the company plans to produce 700,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 23 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30.

Reference no: EM13142071

Questions Cloud

What interest rate was used : Zebra Finance has offered to purchase the payment stream for $2,718,000. What interest rate (to the nearest percent) was used to determine the amount of the payment?

What is the ph of this solution : In the equation HSO4- + H2O SO4-2 + H3O+, if the Ka is 1.5 x 10 ^-2 and HSO4- = 1.0 M at equilibrium, what is the pH of this solution?

Define important information about vapor pressure : Important information about Vapor pressure, At the top of Long's Peak in the Rocky Mountains (a) what is the vapor pressure if boiling a container of eggs (without a lid) occurs

Calculate limits within which weight of the packets lie : Packets filled consecutively by the machine. Calculate the limits within which the weight of the packets should lie assuming that the machine is not been classified as faulty.

Company total required production : Compute the company's total required production in units of finished product for the entire three month period ending September 30.

Describe the role of nadph in photosynthesis : Describe the role of NADPH in photosynthesis. Where is NADPH created ? Where is NADPH used ?

What mass of carbon dioxide in kg is produced : Many home barbeques are fueled with propane gas C3H8 What mass of carbon dioxide (in kg}) is produced upon the complete combustion of 18.9 { L} of propane (approximate contents of one 5-gallon tank)

Cardiac failure : Mr Ward is a 71 year old male who reports feeling a non-radiating, -heavy- discomfort in the lower retrosternal and epigastric region particularly when he bends over or walks short distances.

What amount will logistics comprise in its year-end balance : Included in the checking account balance is $50,000 of restricted cash that Bank of the East requires as a compensating balance for the $300,000 note. What amount will Logistics comprise in its year-end balance sheet as cash and cash equivalents?

User Account

All Pages