Compute the company total required production

Reference no: EM1310681

Greener Grass Fertilizer Company plans to sell 260,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month's estimated sales. There are 208,000 finished units in inventory on June 30. Each unit of finished product requires 3 pounds of raw material at a cost of $2.05 per pound. There are 880,000 pounds of raw material in inventory on June 30.

Required:

1. Compute the company's total required production in units of finished product for the entire three month period ending September 30. (Do not round intermediate calculations. Round your final answer to the nearest unit.)

2. Independent of your answer to part (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 25 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. (Omit the "$" sign in your response.)

Reference no: EM1310681

Questions Cloud

College offering course on malwares : Is offering a college course on how to create computer viruses and other "malware" morally justified? Persuasively defend your answer by drawing upon appropriate theories and concepts you have studied during this course.

Using naturalistic observation : Explain how you might use the naturalistic observation, case studies, survey research and correlation research to help prove or disprove your hypothesis.

Evaluating the post fixed expression : Approximate the post fixed expression a) Initialize an empty stack. While there exist more symbols within postfix string { b) If token is an operand, push it onto the stack. If token is an operator

Definition of primary and secondary market : Definition of Primary and Secondary Market and identification of their role in Finance.

Compute the 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. (Do not round intermediate calculations. Round your final answer to the nearest unit.)

Computing purchase happen on accounting rate of return : Annual net income from this equipment is evaluated at $8,100, $10,300, $17,900, and $19,600 for four years. Must this purchase happen based on accounting rate of return? Why or why not?

Amount of interest expense-proforma income statement : Determine the amount of interest expense the restaurant will report on the June pro forma income statement. What amount will his restaurants report as interest expense on the July proforma income statement?

Risk and security and identification their role in finance : Definition of Risk and Security and identification their role in finance.

Determining cash flows happen at ending of year : Suppose that all cash flows happen at the ending of year. SGP is presently financed with 30% debt at the rate of 10%. Acquisition would be made immediatel.

User Account

All Pages