Compute the company total required production

Assignment Help Accounting Basics
Reference no: EM132008347

Question - San Fernando Fertilizer Company plans to sell 40,000 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 32,000 finished units in inventory on June 30. Each unit of finished product requires four pounds of raw material at a cost of $1.40 per pound. There are 140,000 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.

2. Independent of your answer to requirement (1), assume the company plans to produce 120,000 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.

Reference no: EM132008347

Questions Cloud

Rate of return from capital appreciation during the year : What was the share's rate of return from capital appreciation during the year? (as a percentage to the nearest two decimal points. don't use % sign. eg 2.881% i
How can you leave yourself in the same position : How can you leave yourself in the same position as if the board had elected to make the dividend payment instead? To receive your dividend, the percentage
Why is it important to disclose non-cash transaction explain : Why is it important to disclose non-cash transaction? Explain. What questions about cash are answered by the Statement of Cash Flows? Explain
Evaluate the main forms that slave resistance took : Evaluate the main forms that slave resistance took, analyze the historical forces behind this resistance, and explain its main effects.
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
Recalculate the equity cost of capital : NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 16%. Suppose NatNah decides to increase its leverage and maintain.
What are the key issues : Declining the coffee, Zalifa settles into one of the comfortable chairs facing the desk. What are the key issues? What should Zalifa do
What is the dollar amount of each payment jan receives : Jan sold her house on December 31 and took a $15,000 mortgage as part of the payment. What is the dollar amount of each payment Jan receives?
Critically analyse the concept of risk : Critically analyse the concept of risk; discuss how it can be measured and ranked and outline how a project risk management strategy may be constructed

Reviews

Write a Review

Accounting Basics Questions & Answers

  Develop an e-r diagram for process

Develop an E-R diagram for this process

  Tax file discussing the facts of the tax question

Tax file discussing the facts of the tax question.

  Accumulated depreciation account

The equipment cost $540,000, had accumulated depreciation of $240,000 at the end of the year after recording annual depreciation, and had a fair value of $330,000. After the revaluation, the accumulated depreciation account will have a balance of:

  Determines the amount recorded as a residual asset

1.Why does a lessor sometimes record a residual asset in a lease transaction? What determines the amount recorded as a residual asset?

  Haver company currently produces component rx5 for its sole

haver company currently produces component rx5 for its sole product. the current cost per unit to manufacture the

  Prepare a static budget

Towers Corporation is getting ready for their annual budgeting process. They are budgeting to sell 10,000 shelving units at $8 each. Prepare a static budget

  Is it appropriate for banks and savings associations to

is it appropriate for banks and savings associations to estimate an allowance for pass loans and for credit unions to

  Compute the dollar amount of any misstatement

1.You are told the column totals in a trial balance are not equal.

  Logan can see that her present plan sufficient cash if

at the beginning of the 2014 school year britney logan decided to prepare a cash budget for the months of september

  Prepare a report on compilation engagement

Prepare a Compilation Report. The Coffin brothers have engaged you to compile their financial schedules from books and records maintained by James Coffin.

  Prepare budgeted income statements for each month in

nbspthe budget committee of litwin company collects the following data for its san miguel store in preparing budgeted

  Compute the number of units of each product

Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix.

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