Reference no: EM132436660

Question - For example purposes only, please show the steps and results of the following practice problems:

Part A) Alpha manufactures chairs, and each requires 4 board feet of lumber. Alpha expects that 1,500 and 1,700 chairs will be built in April and May, respectively. Alpha keeps lumber on hand at 40% of the next month's production needs. Use this information to determine number board feet of lumber that Alpha Company: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units.)

1. Should buy in April.

2. Have for desired March ending raw material inventory.

Part B) Alpha company makes units that each requires 2 pounds of material at $3 per pound. Alpha is planning that 500 and 700 units will be built in May and June, respectively. Alpha keeps material on hand at 20% of the next month's production needs. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. Raw Material Costs for May's Production.

2. Total Cost of May's Raw Materials Purchases.

Part C) Alpha company anticipated unit sales of widgets are January, 5,000; February, 4,000; and March 8,000. Alpha consistently maintained finished goods inventory at 80% of the following month's sales. The historic total unit cost has been $10 for each unit produced. Use this information to determine the total cost of completed production for: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. January

2. February